By 2024, 40% of British universities will be in deficit, according to an estimate by the Office for Students, the higher education regulator. The level of debt of certain institutions is also worrying. “They took on a lot of debt to finance investments at a time when interest rates were low”says Jamie Arrowsmith, director of Universities UK International, the association that brings together the sector. Now they are struggling to honor their debts. According to the University and College Union, three or four institutions are even at imminent risk of bankruptcy.
As a result, the sector is multiplying savings programs. “Some 70 universities have made layoffssays John Rushforth, an expert in university governance. Courses, even entire departments, are cancelled. » Sheffield Hallam and Portsmouth universities have announced that 400 positions are at risk, representing 9% and 11% of their workforce respectively. Coventry has planned cuts to save almost 100 million pounds (almost 120 million euros) by 2026. Others are considering merging.
At Kingston University in London, an institution that attracts many young people from disadvantaged backgrounds, there has been a complete review of the curriculum. “We had to ask ourselves which courses are most likely to attract students, allowing us to differentiate ourselves from the competition.explains Steven Spier, president of the university. This forced us to eliminate some of them, such as geology. »
High inflation
In total, the institution has abandoned seventy majors in recent years, particularly in the humanities and social sciences. Ancillary services have also been reduced, such as establishing a cultural program for surrounding communities, building maintenance and updating software.
Like its peers, this establishment has suffered a drop of around 30% in its financial income since 2017. “Tuitions paid by students represent the main source of income for higher education institutions”notes Mr. Rushforth. However, its level remains frozen at £9,250 annually since 2017, despite a period of high inflation.
To make up for this shortfall, universities have tried to attract more foreign students. “There is no limit to the amounts we can charge you”slides Mr. Spier. Enrolling in medicine at the University of Cambridge costs, for example, £67,000 a year for non-UK residents.
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