Universities are an £11bn asset in crisis - but how do we save them?

Universities are an £11bn asset in

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A S THE new academic year gets under way universities in Wales are grappling with huge and persistent financial pressure.

Universities Wales, which represents institutions, is calling for an independent review of how they are funded in the face of a £77m-plus deficit and shifting needs.

According to Universities Wales our universities are worth an estimated £1lbn to the economy, with every £1m of public money put in generating £13m of economic impact, but their future is uncertain with current funding models not sustainable.

Meanwhile, Wales also needs its universities for home students, skills, and the economy here, said Prof Evans.

"It is predicted that by 2035 Wales will need 400,000 more graduates. That's not a nice-to-have - it's a necessity if we are to build the economy, the public services, and the communities our people deserve. Quite simply: there will be no growth without graduates," she said.

For now she has as many questions as answers, but was keen to stress the value of universities to the Welsh economy, ticking off the list of figures including a return of £13m into the economy for every £1m spent.

Welsh universities are worth almost £11bn to the economy, yet they have a £77m deficit

Universities Wales chairman Professor Elwen Evans KC said the £77m deficit for 2023-24 is expected to remain the same, or be a bit higher, for the 2024-25 academic year when figures are out next month.

Despite hundreds of job losses, cuts, and emergency Welsh Government funding in the last academic year, problems remain.

There's a Groundhog Day list of issues to deal with - the deficit, a drop in higher-paying overseas students, lack of cash from home tuition fees, more job cuts, inflationary pressures, and now fresh threats of industrial action.

Almost 200 staff at Cardiff University still remain in limbo over their jobs after sweeping cuts announced in February.