Unions have called for urgent clarity from Edinburgh university after it published an "incorrect" memo that said the cash-strapped institution had purchased an iconic A-listed office block while it was laying off staff.

An internal communication from the university to staff in late March - shared with The Ferret - said it had bought the former Scottish Widows building opposite Edinburgh's Commonwealth swimming pool the previous month.

However in response to queries from The Ferret, a spokesperson for the university denied it had bought the building. They did not explain how the miscommunication had occurred.

Pressed further, a spokesperson said "at this stage, all we can say is that any information suggesting the university has bought the building is incorrect".

The property on Dalkeith Road in the Newington area of the city is known for its distinctive brown hexagonal buildings.

Staff reacted with anger and disappointment to the confusion around the purchase, while the union said it had now lost any remaining trust it had in management.

The information was shared in an online post just weeks after the university announced £140m of cuts over the next 18 months. The Ferret understands the post was taken down a few days later.

This week the university said 350 staff had left through a voluntary severance scheme launched in January and that academic promotions would be frozen for the 2025-26 year. The university has not ruled out further compulsory redundancies.

On Friday the University and College Union (UCU) branch released an analysis claiming that up to 2,000 jobs might be at risk and more money than ever is being spent on buildings.

The memo said the Scottish Widows building was bought as part of the university's "capital plan" to continue its commitment to "world-class facilities" for students and staff.

The UCU called for urgent answers over the confusion and clarity about whether buying the property was, or is, under consideration.

The university told staff it had purchased the building in answer to a question posted on an internal online hub. The Ferret understands the question reflected longstanding rumours circulating amongst Edinburgh staff.

The union said the rumours were fuelled by the lack of "transparency and accountability" surrounding capital expenditure at the university. It claimed "finance and capital" were "driving the direction of the university rather than teaching and research".

Scottish Labour said "overstretched" university finances meant it was "more important than ever" that "all financial decisions are sound and high standards of transparency are being held".

The Dalkeith Road site has been vacant since 2020.

But plans to redevelop it into a 'business hub' and nearly 200 apartments - of which 35 per cent were expected to be 'affordable' - were approved by the council in 2023.

The cost of that refurbishment - which would include replacement of the building's glass façade because it contained "significant amounts of asbestos" - was previously estimated to be £100m.

University of Edinburgh management has blamed factors including a fall in the recruitment of international students, "longstanding" underfunding of Scottish undergraduates and rising staff costs for its financial troubles.

But the UCU - which is balloting members on strike action - has accused senior staff of "manufacturing a crisis" to justify cuts and claim the biggest threat to its finances is "unrestrained" capital spending on things like buildings.

Over 400 university staff earn more than the first minister

A number of universities across Scotland - including Dundee, Robert Gordon and Aberdeen - are facing financial problems.

The body that represents Scotland's higher education institutions, Universities Scotland, argues the root cause of the crisis is underfunding. The amount the Scottish Government gives universities for each Scottish student has declined in real terms for more than a decade.

Universities have become increasingly d...