Radical action needed to save our universities

THE UK’S higher education sector is facing extreme challenges that cannot simply be dismissed as many political leaders have recently done.

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This view is perfectly echoed in new research from KPMG and Mills & Reeve that makes it clear the current model - one rooted in squeezing more from those who have no more left to give - will not be enough to deal with the scale of economic, demographic, technological and political pressures now bearing down on universities.

According to the report Radical Collaboration, while financial sustainability is the immediate concern of many universities, any reshaping of the higher education is not just simply about cost-cutting as we have seen in the past.

In fact, any future collaboration between institutions now needs to be about reshaping the sector to deliver research excellence, high-quality teaching, broader access, and greater local and national economic impact.

Over the past 18 months, we have seen reports of universities wrestling with rising costs such as pay and pension obligations, while tuition fee income remains frozen in cash terms and continues to be eroded by inflation.

Immigration rules and the political climate around international students has also added to further uncertainty by forcing increased competition not only between institutions but from private providers, online learning platforms, and workplace-based alternatives.

Politicians are also insisting on greater value for money, stronger graduate outcomes, and deeper regional engagement, while the skills needs of the economy are shifting rapidly thanks to Al, sustainability imperatives and changing labour markets.

As a result, tinkering at the edges will simply not be enough for those in charge of universities and there will need to be radical changes in structure, costs, participation and institutional form.