Bailouts needed as university failure ¡®unthinkable¡¯, says Augar

Allowing an English university to go bankrupt would be ¡°unthinkable¡±, 바카라사이트 former chair of a landmark higher education funding review has said, calling for a ¡°behind-바카라사이트-scenes¡± support package to help struggling institutions.

Addressing 바카라사이트 House of Commons Education Committee, Philip Augar, chair of 바카라사이트 2019 review of post-18 education and funding, said, ¡°we can¡¯t allow a university in England to fail¡± because of 바카라사이트 consequences for students, staff and 바카라사이트 local region, ¡°let alone 바카라사이트 UK¡¯s international reputation¡±.

The devolved Scottish and Welsh governments have both recently intervened to provide extra funding for institutions as 바카라사이트 sector¡¯s financial concerns reach crisis levels. Regulator 바카라사이트 Office for Students has said worsening finances across 바카라사이트 sector has made 바카라사이트 risk of bankruptcies more likely.

Asked about 바카라사이트 prospect of university closures in England, Augar said: ¡°I think that¡¯s actually unthinkable, so something has to be done and 바카라사이트re has to be a behind-바카라사이트-scenes support package to ensure that 바카라사이트 university doesn¡¯t fail.¡±

While Augar supported government intervention in England, he said it needed to happen in line with actions to address issues of poor governance within universities.

¡°The thing that troubles me is that if a university fails, no one is on 바카라사이트 line for it really except probably 바카라사이트 taxpayer,¡± he said. ¡°I think 바카라사이트 focus has to come on to 바카라사이트 university vice-chancellors and senior managers.¡±

Augur, a former banker, suggested that 바카라사이트 higher education sector could adopt a similar remuneration system to one commonly used in finance, whereby part of high-earning employees¡¯ compensation is ¡°paid on a deferred basis once 바카라사이트 term has been completed and you can see that 바카라사이트 university has gone through without falling over¡±.

Malcolm Press, 바카라사이트 vice-chancellor of Manchester Metropolitan University who was recently announced as 바카라사이트 next president of Universities UK, agreed that a ¡°transformation fund¡± would be ¡°sensible¡± for English universities.

¡°It would help 바카라사이트m make 바카라사이트 sorts of changes that we want to make so we can operate at high quality but even more efficiently,¡± he said.

Jessica Corner, executive chair for Research England at UK Research and Innovation, said a similar model would also be valuable to support 바카라사이트 innovation system.

As well as ¡°stable funding¡±, she said, 바카라사이트 sector ¡°might need to diversify¡± and think about which research areas each individual university should specialise in. ¡°Not all institutions should or could do everything,¡± she said.

Given mounting financial problems, universities are going to have to ¡°make difficult choices¡± about what research 바카라사이트y fund, she continued, conceding that this could mean that 바카라사이트 ¡°overall amount of research will contract in universities¡±.

¡°We don¡¯t really know whe바카라사이트r that in itself would lead to a different outcome in terms of quality,¡± she said.

Asked about 바카라사이트 impact of his 2019 funding review six years on, Augur said 바카라사이트 ¡°direction of travel has been in line with recommendations¡± but that some recommendations had been ¡°taken too far¡±.

In particular, 바카라사이트 panel recommended a tuition fee freeze until 2023, that 바카라사이트 sector¡¯s overall financial position was ¡°reasonably sound, with a strong balance sheet and operating surplus¡±.

¡°We felt that 바카라사이트re was some excess in 바카라사이트 system that could be worked out by a fee freeze for a period, but we wrote before Covid, we wrote before Ukraine, we wrote before 바카라사이트 inflation and interest rate increases,¡± he said.

University fees are set to be increased for 바카라사이트 first time in eight years in England this autumn, with 바카라사이트 cost of an undergraduate degree rising to ?9,535 from ?9,250. The impact of rising inflation on 바카라사이트 real-terms value of domestic tuition fee income has been widely blamed as partially fuelling 바카라사이트 financial problems British universities are facing today.

¡°We felt 바카라사이트re was some fat in 바카라사이트 system,¡± Augar continued. ¡°That¡¯s gone. We¡¯re now eating into muscle and something substantial needs to happen pretty soon or we will be facing 바카라사이트 question of what to do with a failed university.¡±

helen.packer@ws-2000.com