Without action to tackle their finances, British universities will slide into decline, according to Universities UK president Prof Dame Sally Mapstone. Her call comes as universities prepare to make further cuts this year, with 40% of universities in England predicting deficits, according to the Office for Students. The situation is caused by tuition fees being worth less than they formerly were, and falling numbers of international students to provide a financial bridge. Universities UK has also conducted research by London Economics indicating that universities contribute £265bn ($322bn) net to the economy.
The sector is optimistic that the government will produce fresh funding. Skills Minister Baroness Jacqui Smith has said that the government is “considering all options” to create a “more robust” higher education sector. The government and universities must find ways to collaborate and address financial problems, according to Dame Sally. Rather than placing “all responsibility” on the state, shocking cuts to courses and staffing could result from a failure to act, she warned. She also called for a “reset” of the sector, including a review of the funding balance and recognition of the benefit that graduates provide to the Treasury.
Whilst tuition fees have remained stable since 2012, rising costs have impacted their value. Universities have sought to compensate for the shortfall by increasing recruitment of international students. But new visa rules and restrictions, along with a currency crisis in Nigeria, has reduced their numbers significantly. By contrast, universities have sought to fill the deficit by enrolling domestic students, offering promotion and support. This year, the number of 18-year-olds accepted into top universities increased dramatically compared to last year.
The government is committed to ensuring that Britain’s universities are equipped for growth and opportunity while developing equal educational opportunities for students from all backgrounds. It has taken primary steps in the right direction, according to a spokesperson from the Department of Education
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