asked the Secretary of State for Education and Science whether the grant available to the University Grants Committee will be reduced to compensate for the partial reimbursement of the community charge for students studying in Scotland; and if he will make a statement on the financial effects on Scottish universities.

Scottish universities will continue to pay non-domestic rates. There are no proposals for changing the present arrangements under which these rates are reflected in university grants. We do not expect the introduction of the community charge to have any significant net effect on the financing of universities in Scotland.