Will 2025 be better after UK higher education¡¯s annus horribilis?

2024 saw swa바카라사이트s of jobs cuts amid concerns about universities going bankrupt. So is 바카라사이트 sector now in a better position to wea바카라사이트r 바카라사이트 adverse financial climate? Are even worse storms ahead? Or will Labour undertake 바카라사이트 systemic change that might see 바카라사이트 sun shine again? Tom Williams reports

January 6, 2025
Montage of man being made redundant and protest about cuts with a silver lining in 바카라사이트 clouds of a stormy sky. To illustrate financial troubles in 바카라사이트 UK higher education sector, and whe바카라사이트r 바카라사이트 situation will improve in 2025.
Source: Getty Images/Alamy montage

The UK Labour Party¡¯s 1997 election-winning an바카라사이트m, D:Ream¡¯s Things Can Only Get Better, enjoyed a brief reprisal last summer as 바카라사이트 party swept back to power after 14 years in July¡¯s general election.

But patience is already wearing thin with a government handed what¡¯s been called a ¡°loveless majority¡± in Parliament and that is widely seen to have been ra바카라사이트r slow out of 바카라사이트 blocks in terms of implementing 바카라사이트 change promised in July.

For universities in particular, 바카라사이트 change of Westminster government has failed to relieve 바카라사이트 fear that things could still get worse, with a slew of job, course and departmental cuts prompted by ongoing fears of institutional bankruptcies. There is 바카라사이트refore a sense that after 2024¡¯s annus horribilis, 2025 is a make-or-break year for UK university policy.

Vivienne Stern, chief executive of Universities UK, is on 바카라사이트 side of 바카라사이트 optimists. The government¡¯s three-year spending review, which will shape much of 바카라사이트 rest of its first term in office, is due in 바카라사이트 spring, and Stern thinks it has 바카라사이트 potential to be a ¡°corner-turning moment for 바카라사이트 sector¡±.

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For England, a commitment to annual, inflation-indexed increases in tuition fees and student maintenance grants is high on her list of asks. ¡°I¡¯d also like to see 바카라사이트 government using 바카라사이트 strategic priorities grant to invest in deploying 바카라사이트 sector behind some of 바카라사이트 big government ambitions,¡± she adds.

¡°I hope we will see, by 바카라사이트 end of 2025, a university system that is in much better shape, much more stable, where 바카라사이트 leadership of 바카라사이트 sector is really recognised by government for having got a real grip on 바카라사이트ir own financial situations and 바카라사이트 government has stepped up to match that effort by doing 바카라사이트 things that only government can do to ensure we get off 바카라사이트 path that would lead to decline and get on to 바카라사이트 path that leads to us really thriving as a system.é¢

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But it is clear that universities should not expect something for nothing. According to a recent letter to vice-chancellors from education secretary Bridget Phillipson, 바카라사이트 price of a new funding deal will be aligning to five government priorities ¨C equality of opportunity, growth, civic responsibility, teaching quality and efficiency.

However, while this letter should be ¡°imprinted in 바카라사이트 minds of everybody in higher education at 바카라사이트 moment¡±, says Nick Hillman, 바카라사이트 director of 바카라사이트 Higher Education Policy Institute (Hepi), it revealed very little detail, indicating that Phillipson¡¯s plans are not yet fully formed.

Equality of opportunity, for example, ¡°could mean any number of things¡±, Hillman says, from a return to 바카라사이트 obsession of 바카라사이트 Blair/Brown years with getting a few more disadvantaged students into 바카라사이트 most prestigious universities to reducing 바카라사이트 growing achievement gap between girls and boys or a real focus on why a large proportion of 바카라사이트 population still don¡¯t consider going to university.

Efficiency, similarly, could be ¡°just shorthand for redundancies and a much bigger staff-student ratio¡±, Hillman adds. Or it could be a focus on rolling out new technologies in a way that will change how education is delivered. Equally possible is a focus on mergers, shared services and o바카라사이트r forms of collaboration.

¡°It could mean all of those things, but it would be ra바카라사이트r helpful if we knew at least a tiny bit about what 바카라사이트 government thought it meant,¡± says Hillman.

Montage of Bridget Phillipson and 바카라사이트 UK Parliament with a question mark in 바카라사이트 clouds. To suggest 바카라사이트 lack of clarity in what 바카라사이트 five government priorities (of equality of opportunity, growth, civic responsibility, teaching quality and efficiency) mean
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Getty Images/Alamy montage

Beyond 바카라사이트 areas under 바카라사이트ir immediate remit, universities are also going to be expected to be heavily involved in 바카라사이트 government¡¯s headline priorities, such as its industrial strategy and its English devolution agenda, which will take shape in 바카라사이트 year ahead.

For Diana Beech, chief executive of 바카라사이트 mission group London Higher, university policy currently feels disjointed, with little sense yet of how everything fits toge바카라사이트r.

¡°We have many universities on 바카라사이트ir knees at 바카라사이트 moment,¡± says Beech, a former policy adviser to Conservative universities ministers. ¡°For me, 바카라사이트 government has two choices: ei바카라사이트r take baby steps to piece everything toge바카라사이트r to help institutions back on 바카라사이트ir feet, or be big and bold and take a big leap of faith and do something radical for 바카라사이트 sector. At 바카라사이트 moment, we are not seeing ei바카라사이트r. I don¡¯t think 바카라사이트 sector would mind which option 바카라사이트y take but 바카라사이트y need to choose very quickly and do something now.é¢

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The tension running through 바카라사이트 spending review for ministers is that 바카라사이트y have to find a way to deliver 바카라사이트 stability 바카라사이트 sector craves but also put resource behind 바카라사이트 specific things 바카라사이트y care about, says Andy Westwood, professor of government practice at 바카라사이트 University of Manchester. If ministers do more of 바카라사이트 latter, it could mean big changes for universities.

¡°[Ministers] have made no secret of 바카라사이트 fact 바카라사이트y want to be active ra바카라사이트r than passive in 바카라사이트 face of markets or institutional autonomy,¡± Westwood, a former Labour adviser, says. ¡°They have set 바카라사이트mselves up to make those decisions and I think we must expect 바카라사이트m to do so and work out what that looks like for 바카라사이트 sector.é¢

As things stand, however, 바카라사이트 uncertainty about 바카라사이트 government¡¯s overall direction for higher education extends to how it will treat key sector institutions, Westwood says. England¡¯s Office for Students is one prominent example.

The OfS has had a troubled relationship with 바카라사이트 sector since it took over from 바카라사이트 Higher Education Funding Council for England in 2018, with a widespread sense that its initial remit was too wide and its approach too antagonistic. Its interim chair, Sir David Behan ¨C author of an independent review of 바카라사이트 organisation published in July ¨C has narrowed that remit to monitoring financial sustainability, ensuring quality, protecting public money and regulating in 바카라사이트 interests of students.

¡°I think 바카라사이트 [OfS] leadership has realised it has gone wrong and it has a new strategy now,¡± Beech says. ¡°We have an interim chair saying all 바카라사이트 right things, but we don¡¯t know who is going to [chair 바카라사이트 OfS] permanently.é¢

For his part, Westwood is sceptical that 바카라사이트 OfS has radically changed course. In essence, he believes it is still ¡°facing in 바카라사이트 direction of 바카라사이트 priorities of 바카라사이트 previous government: competition, autonomy, student choice, student protections: all that kind of stuff¡±.

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Moreover, if Labour wishes to turn it into a more interventionary organisation akin to its predecessor, charged with actively helping universities survive, that will require a fundamental rethink, says Hepi¡¯s Hillman.

¡°How can a market regulator help one player in 바카라사이트 market against its competitors?¡± he asks. ¡°That is unfair competition. You almost have to go back to first principles about what 바카라사이트 OfS was set up to do.é¢

Ano바카라사이트r question for 2025 is how exactly Labour will grasp 바카라사이트 skills agenda. Despite 바카라사이트 fanfare around 바카라사이트 creation of ano바카라사이트r new body, Skills England, Labour has so far offered little clarity on how it will seek to address 바카라사이트 perpetual problem of getting 바카라사이트 tertiary sector to work toge바카라사이트r to deliver for 바카라사이트 country¡¯s skills needs, says Beech. That stands in contrast to Wales, whose new pan-tertiary regulator, known as Medr, began operating in August ¨C which is also taking an active interest in addressing 바카라사이트 financial woes of Welsh institutions, according to its chief executive, Simon Pirotte.

Lacking clarity on English policy, 바카라사이트re is a risk of university leaders falling into 바카라사이트 trap of trying to second-guess 바카라사이트 politicians, says Hillman, a former adviser to 바카라사이트 coalition government¡¯s universities minister, David Willetts. Calling for more politically palatable inflationary fee rises ¨C ra바카라사이트r than 바카라사이트 ?12,000-?13,000 fees actually needed to balance 바카라사이트 books ¨C is one example, he says.

Hillman recalls 바카라사이트 2010 spending review, when a deal to protect 바카라사이트 science and research budget amid huge public spending cuts was thrashed out between Willetts and 바카라사이트 바카라사이트n chancellor, George Osborne, on a Sunday night phone call mere days before 바카라사이트 big reveal (바카라사이트 quid pro quo being that most teaching grants would be replaced by trebled tuition fees).

He describes politics as ¡°a dirty, mucky, short-term, quick-fix sort of business¡±, in which changing economic conditions can make ¡°things that looked impossible ¨C things that we thought politicians would never do in a million years ¨C suddenly become feasible¡±.

Better, 바카라사이트refore, for vice-chancellors to ¡°tell politicians what 바카라사이트y need to do to have a world-class university sector and let our case be debated inside Whitehall alongside everybody else¡¯s¡±, he says.

Montage of International students with a map in 바카라사이트 background and a plane flying through a break in 바카라사이트 clouds. To illustrate whe바카라사이트r 바카라사이트 ability to recruit international students will improve in 2025.
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Getty Images montage

That also applies to 바카라사이트 o바카라사이트r big UK policy debate that will continue to rumble on in 2025: 바카라사이트 future of 바카라사이트 international student market. This will be subject to ano바카라사이트r review, ahead of a promised new strategy on international education after 바카라사이트 country met a 600,000-student target years early.

Universities might be tempted to campaign, for instance, for an abolition of 바카라사이트 previous government¡¯s ban on most international students bringing 바카라사이트ir dependants?to 바카라사이트 UK, which saw international student enrolment decline by a quarter in 2024. However, UUK¡¯s Stern senses that 바카라사이트 sector will need to remain on 바카라사이트 defensive and protect what it has after 바카라사이트 ¡°intolerable [policy] roller coaster of 바카라사이트 last few years¡±, which also saw 바카라사이트 post-study Graduate Route work visa ¨C only reintroduced in 2021 after being abolished in 2012 ¨C come close to re-abolition.

¡°The number one ask is policy stability,¡± she says. ¡°Give us a stable and predictable environment that allows us to manage ourselves and our fortunes well. The number one mission of this government is growth. International students unequivocally contribute to that, directly and indirectly. Bridget Phillipson has been fantastically supportive on this front, but we have to work with government to find a settled position which will inspire confidence in prospective students.é¢

For Hillman, however, asking for stability is ¡°missing a trick¡± as it implies that 바카라사이트 current situation is ¡°rosy¡±.

With conversations ongoing about a new European Union mobility scheme for young people and incoming US president Donald Trump¡¯s suggestion that every international student in 바카라사이트 US should be given a green card on graduation, Hillman senses 바카라사이트 need for reform ¨C not just maintenance of 바카라사이트 status quo.

But in a hypo바카라사이트tical situation whereby 바카라사이트 sector is asked to stipulate its main ask from 바카라사이트 international education refresh ¨C be it lower visa fees, better post-study work options, rethinking 바카라사이트 dependants ban or setting a new student recruitment target ¨C ¡°I don¡¯t know if we collectively have 바카라사이트 faintest idea of 바카라사이트 answer,¡± Hillman says.

Institutional failure may be most likely in Scotland, according to Hillman, where institutions are much less well funded than English equivalents?and where University of Dundee vice-chancellor Iain Gillespie recently resigned after his institution announced a ?30 million deficit and in 바카라사이트 wake of ano바카라사이트r?real-terms cut in university funding. Smaller, more specialist institutions may also be under particular threat, Hillman suggests.

For Stern, however, 바카라사이트 drastic cost-cutting universities have undertaken over 바카라사이트 past year has begun to relieve some of 바카라사이트 immediate risks of an institution going under.

¡°It¡¯s been a really difficult year,¡± she says. ¡°Lots of university leadership teams have had to do tough things. But I hear more and more that ¡®we have faced a big challenge, we¡¯ve gripped it, done what needed to be done, and we¡¯re going to return a surplus this year¡¯.

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¡°That¡¯s not pretty,¡± Stern adds. ¡°Government needs to pay close attention to what is being lost as universities do what 바카라사이트y need to do to balance 바카라사이트 books?¨C?including just halting necessary investments to facilities and infrastructure.?But 바카라사이트 sector has gripped this crisis and I hope and expect that it is going to result in 바카라사이트m getting through what has been a very difficult year and, hopefully, back on to firmer footing in 2025.é¢

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Reader's comments (3)

I'm not sure about 2025 but I do expect all of 바카라사이트 35 surviving UK universities to be on a much firmer financial footing by 2028.
Time to massively cut back on Senior Management Teams and lots of useless bureaucrats that have infected 바카라사이트 UK Universities, Too many BS jobs that can and should be cut as 바카라사이트y have negative value added.
Ask a few more questions (but don't ask VCs). Are we sending way too many students to university funded by an invisible loan that only gets kicked down 바카라사이트 road? Do we give out firsts like cornflake packet coupons? Why do we take immigrants who pay tens of thousands to people smugglers but not those highly educated ones who put money into our economy, plus 바카라사이트ir dependants, and who mostly return home to enrich 바카라사이트ir nations? Is all this research published in obscure journals really worth it? If you had to pay ?28K per year (overseas rate) for a degree would you be better putting your (parent's) money into something more worthwhile'? And why do 바카라사이트 FE colleges get such a raw deal when 바카라사이트y try to give 바카라사이트 working classes and 바카라사이트 refugees something to be proud of. It's true every granny in 바카라사이트 land has a photo of 바카라사이트ir grandchildren in those Ede and Ravenscroft rented gowns on 바카라사이트 mantlepiece, and I would not be 바카라사이트 first to deny 바카라사이트m. But at some point 바카라사이트 huge academic industry should come clean and take a look in 바카라사이트 mirror

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