University closures may become ‘commonplace’ if funding is not improved for the sector

University closures could “become commonplace” if funding is not improved for the higher education sector, a former vice-chancellor has warned.

English university budgets are under “intense pressure” and “painful choices” are already being made, according to a report published by the Higher Education Policy Institute (HEPI) think tank.

The report – written by Professor Sir Chris Husbands, former vice-chancellor at Sheffield Hallam University – highlights the challenges facing universities as a result of frozen tuition fees for home students, visa restrictions for international students and “structural deficiencies” in research funding.

In the paper, published ahead of the general election, Sir Chris, who resigned as vice-chancellor of Sheffield Hallam in December, sets out four possible scenarios for the future of English higher education and looks at what they could mean for students and universities.

In the first scenario – which takes into account what happens on the current funding trajectory – Sir Chris warns that “university decline, institutional mergers and failures are becoming common”.

If the next government does not improve funding for tuition or undergraduate maintenance, address flaws in research funding and visa restrictions on international students remain, then the number of institutions could fall and the sector could become “adept” at managing market exits, the report said .

The report, sponsored by the Policy Institute at King’s College London (KCL), suggests that an alternative scenario – where the sector is fully funded for high participation, research and innovation – would allow institutions to plan long-term investment in their communities and regions . .

In the paper, Sir Chris said: “Scenarios 1 and 2 are of course extremes. Scenario 1 paints a picture of the higher education sector in England if the government does not confront the policy choices for universities and sees the sector spend the next decade dealing with the consequences.

“Scenario 2 presents a picture of a financially secure sector. If it seems unlikely from a political and economic point of view, it is not too far from the policy positions of the main sector representative bodies which seek sustainable student fees, investment in the full costs of research and flexibilities in the international student market.”

He added: “The shape of higher education in 2024 is a consequence of previous interactions between universities and politics. It could – and will – change.

“Whoever wins the Fourth of July election will have to think hard about the higher education the country needs and is willing to support.”

In a foreword to the report, Professor Shitij Kapur, vice-chancellor and president of KCL, said the “funding crisis” facing the higher education sector required urgent attention from the next government.

He said: “UK universities are held in high esteem around the world – envied for their excellence and widely emulated.

“But despite their excellent reputation, they are currently facing some of the biggest funding challenges and the most glaring questions about their role that they have ever faced.”