Universities asked to manage their own budgets after calls for bailouts

The UK education secretary has said universities must get their finances in order before asking taxpayers for help.

Speaking to Radio 4’s Today programme, Bridget Phillipson said there was an expectation that universities should “manage their own budgets” as independent institutions.

This follows a call from the University and College Union (UCU) to bail out universities in financial difficulty.

Ms Phillipson said Labour recognised universities as a “public good” and would seek to create a more stable financial foundation for the sector in the long term.

Jo Grady, general secretary of the University and College Union, warned over the weekend that universities face “catastrophe” without an emergency government rescue package.

In its latest assessment of university funding, the higher education regulator, the Office for Students, said 40% of universities expect to face a budget deficit.

She noted that some institutions were making optimistic predictions about attracting international students, who bring in more money in tuition fees than students from the UK.

The education minister said she wanted to keep the graduate visa route going, adding: “We want to welcome international students to this country.”

Which universities offer discounts?

“The majority of the sector is in trouble,” Vivienne Stern, chief executive of the Universities UK Association, which represents more than 140 institutions, told the Today programme on Monday.

She said 70 universities were now working on cost-cutting exercises, adding that she would be “quite surprised” if almost all universities had not done the same by the end of the year.

“We have gone beyond just cutting things that no one will notice,” she said, adding that the coming cuts would soon start to affect the student-to-staff ratio and the courses universities can offer.

Across England, universities are tightening their purse strings, with some looking to cut staff numbers by up to 10%, as well as closing or merging courses.

Goldsmiths’ staff in London were involved in Mark as county There are also plans to cut jobs there.

While the new government offers universities no immediate solace through taxpayer bailouts, it is clear that they will still have to look for long-term solutions to the sector’s financial problems.

Last week, the new government accepted the resignation of Lord Wharton from his position as head of the Office for Student Services.

He was criticised for his lack of impartiality in the role, as he continued to support the Conservative Party in the House of Lords at the same time.

The education minister said she would explain in detail in parliament this week how the education office would work.

We might expect to see her ask the bank to focus on its larger mission — ensuring the financial stability of the sector — rather than getting sucked into culture war debates.

The body has previously been given a role in monitoring freedom of expression on campus, with new powers to fine organisations and student unions due to come into force this summer.

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