Universities UK make financial recommendations to the Government

On 10th April 2020, Universities UK sent proposals to the Government (see https://universitiesuk.ac.uk/news/Documents/uuk_achieving-stability-higher-education-april-2020.pdf), highlighting concerns that they have regarding the impact of COVID-19 on the state of the UK’s universities, and recommending action by Ministers to support the university sector. Critical within the proposals offered by Universities UK (UUK) are:

  • An acknowledgement that universities generate more than £95 Billion for the UK economy, 940,000 full-time equivalent jobs, increase social mobility, drive innovation and research, contribute to the UK’s world standing and play a role in the lives of local communities and businesses
  • A fear that COVID-19 will negatively impact the ability of UK universities to continue providing the benefits that they do to society
  • A recognition that universities are pro-active players in the fight against COVID-19 through scientific endeavour, sharing of assets and support for local communities
  • A need for central Government to invest in universities to secure their continuing work

UUK suggest that, within the 2019/2020 academic year, across the UK, universities will lose around c£790 million of income (through, for instance, accommodation and catering). This financial prediction is worsened by a projection that, in 2020/2021, there will be a significant fall in the number of international students and a rise in home student deferrals. The implications for HE institutions are potentially grave and could result in: some research activities ceasing (due to funding restrictions); leading academics leaving UK universities; and increased competition across the UK sector (which could itself damage some institutions).

In terms of social impact, without adequate funding, the capacity of universities to positively influence skills building and social mobility (especially amongst groups who are less likely to attend HE) may be limited. Additionally, damage could be caused to the UK’s HE reputation (both in terms of teaching and research), and also there might be shortages of specific graduate-level skilled workers, and even the failure of certain institutions (which, of course, has effects on local economies and job markets).

To avoid these catastrophic outcomes, UUK has proposed that the government should take appropriate action:

  1. To mitigate the impact on the strength, capacity and quality of the research base
  2. To provide stability to UK students entering HE in 2020/2021
  3. To mitigate the impact on the supply of highly skilled employees across all areas of the UK (including public services) and preserve student choice
  4. To maximise value to the taxpayer and meet the needs of the economy
  5. To address losses in income and cash flow
  6. To mitigate the impact on international student recruitment

UUK’s proposals are far reaching and would necessarily require action by HM Treasury, the Departments for Education and Business and the relevant Departments of devolved administrations. At this challenging time, what UUK reasonably suggest is that a co-ordinated UK plan is needed to enable universities in England, Wales, Scotland, and Northern Ireland to recover and flourish in the future. Of course, it remains to be seen whether Government accepts these proposals and, if so, how it will manage the ‘devil in the detail’, which could be so critical to the future survival, shape and mission of the UK’s universities.