The report highlights the huge scale of the potential
impact on students, universities, the jobs market, local communities and the
wider economy if urgent action is not taken by government.
Universities UK has recently published a balanced package of proposals to
government to mitigate these challenges and ensure the sector is able to play a
key role in the UK’s recovery and awaits a response from government to this.
The Chief Executive of Universities UK, Alistair
Jarvis, said:
“Universities
have a vital role to play in the recovery of economies and communities. This
helpful report highlights the critical financial risks for the sector which not
only threaten this role but put some universities at risk of financial failure.
“The union is
absolutely right to warn of the knock-on impacts this would have for jobs,
regional economics, local communities and students.
“Government
must take urgent action to provide the support which can ensure universities
are able to weather these very serious challenges, and to protect students,
maintain research, and retain our capacity to drive the recovery of the economy
and communities.”
Universities
UK’s own analysis shows that some institutions will be particularly impacted by
any combined reduction in international student numbers and increased
deferrals. Those are likely to have higher levels of external borrowing and
lower levels of cash reserves. This limits the ability of the most
vulnerable institutions in this scenario to increase their borrowing to
mitigate the consequences of reduced student numbers.
Meanwhile
institutions facing the greatest financial pressure in general have higher
proportions of BAME students. This would mean that this group could be
disproportionately affected if their institutions face financial difficulty and
their institutions’ ability to provide a high-quality student experience is
affected.
Notes
to editors
Universities
UK is the collective voice of 137 universities in England, Scotland, Wales
and Northern Ireland. Its mission is to create the conditions for UK
universities to be the best in the world; maximising their positive impact
locally, nationally and globally. Universities UK acts on behalf of
universities, represented by their heads of institution. Visit: www.universitiesuk.ac.uk
