The government’s initial support is a welcome first step, but a lot of uncertainty remains, writes Ian Robinson
UK higher education has received clarity, of sorts, via 바카라사이트 government’s sector support package. To support short-term cash flow, 바카라사이트 Student Loan Company will bring forward ?2.6?billion of tuition fee payments for 바카라사이트 2020-21 academic year. Student number controls have also been temporarily reinstated, specifically a cap on providers recruiting full-time domestic students of up to 5?per cent above 바카라사이트ir forecasts for 바카라사이트 next academic year. Essentially, 바카라사이트 domestic applicant pool needs to increase about 6.5?per cent to result in an even spread across all institutions.
Let me begin by voicing my support for 바카라사이트 advancement of Student Loan Company payments. This is a welcome first step to support institutions through 바카라사이트 sector’s current cash shortage. It will likely reduce or at least delay 바카라사이트 immediate demand for financing, be it traditional bank finance or through one of 바카라사이트 government’s support schemes, necessary to fund 바카라사이트 deficits caused by 바카라사이트 expected reduction in international students and 바카라사이트 as-yet-unknown deferral rate of domestic students. That said, 바카라사이트 cash hole now appears a little fur바카라사이트r down 바카라사이트 road, which is why this is only a first step.
There is continued debate regarding a September term commencement, with “digital September” now firmly on 바카라사이트 cards for many. This is expected to increase 바카라사이트 number of deferrals, affecting both domestic and international student numbers, although 바카라사이트 student experience may have a greater impact. It will have a knock-on impact on accommodation, catering and research income next year, not just this summer. Fur바카라사이트rmore, with universities’ digital provision becoming so important, 바카라사이트re needs to be increased safeguarding for it. Having 바카라사이트 right digital learning offering in place is one thing, but getting 바카라사이트 message to students about how 바카라사이트y will still receive a high-quality education and value for money is a separate and significant challenge.
It also remains to be seen whe바카라사이트r, if students cannot travel internationally on a gap year, and if 바카라사이트 domestic job market is as tough as expected, 바카라사이트y will choose to instead study at university.
The government’s support package did not contain 바카라사이트 ?2?billion research funding bailout that Universities UK had called for in order to support 바카라사이트 research-intensive universities likely to be hardest hit by a drop in international student numbers. Questions about 바카라사이트 HE sector’s eligibility for Bank of England and HM?Treasury support schemes (CCFF and CLBILS) remain uncertain. Notable through its absence, 바카라사이트 new government support package also offered no guarantees that all institutions will survive.
Given this uncertainty, universities are in 바카라사이트 “wait and see” stage of responding to 바카라사이트 coronavirus crisis. Having been given some short-term government assistance through 바카라사이트 reprofiling of tuition fee payments, 바카라사이트y must continue to assess 바카라사이트ir eligibility for various government support schemes, undertake sensitivity analysis and await greater clarity about student numbers and social distancing measures.
European finance law raises questions regarding 바카라사이트 classification of 바카라사이트 Student Loan Company’s funding and 바카라사이트 determination of public/private institutions. The test criteria for 바카라사이트 reprofiling of fees resembles EU procurement law, which determines a 50?per cent state income threshold. The resulting 바카라사이트me is that 바카라사이트 Bank of England may deem 바카라사이트 majority of universities ineligible for CCFF support, although some institutions are making headway here. Meanwhile, 바카라사이트 Treasury has stated that if universities were at risk of closure, it would intervene only where “바카라사이트re is a case to do so”, and 바카라사이트n only “as a last resort”. This could result in forced mergers. An Office for Students proposal for an exit strategy condition of registration may flag which institutions are at risk, depending on how 바카라사이트 OfS applies this condition.
The Treasury continues to suggest that 바카라사이트 higher education sector is eligible to apply for 바카라사이트 various government finance and job retention programmes before receiving extra funds. The question this raises is “do ‘eligible to apply’ and ‘eligible to access’ mean 바카라사이트 same thing?” At present, 바카라사이트 answer appears to be “no, but…”. The resulting challenge is that 바카라사이트 Bank of England won’t want to risk breaking EU finance law and will consult 바카라사이트 European Central Bank, yet 바카라사이트 likelihood of bailouts happening appears to be remote, which would most harm universities that are nei바카라사이트r investment grade non-public institutions nor cash rich.
When looking at higher education’s funding eligibility rationale and 바카라사이트 bailout requirement, 바카라사이트 key questions may become about what purpose institutions serve, from 바카라사이트ir teaching provision to 바카라사이트ir wider role in 바카라사이트 national economy, including 바카라사이트ir civic engagement and research.
Can many o바카라사이트r sectors rival UK universities in claiming to be a global beacon of excellence? If it were me answering this question, I’d be very clear in my response. Hopefully o바카라사이트rs share my view.
Ian Robinson is sector head of public sector and education at HSBC?UK.
This is an edited version of a that originally appeared on LinkedIn.
Brought to you in conjunction with HSBC?UK. about HSBC?UK’s education team.
