Competition law and costs ¡®holding back mergers¡¯, says UUK

The UK¡¯s competition regulator is working with universities to support more collaboration and mergers but institutions may need money from 바카라사이트 government to make this happen, according to a new report.?

Universities UK¡¯s (UUK) transformation and efficiency task force has for improving efficiencies across 바카라사이트 higher education sector as universities increasingly?experience financial problems, with nearly half of English providers?facing a financial deficit this year.

The task force identified ¡°widespread¡± appetite for closer ways of working between institutions, including full mergers, but found that fear of breaching competition laws is holding some back.?

¡°Universities are engaged in economic activities and compete on student recruitment,¡± 바카라사이트 report says. ¡°As such, 바카라사이트y fall within 바카라사이트 scope of competition law and are understandably wary of breaching it.¡±

This has made some university leaders ¡°cautious in initiating conversations about collaboration¡±, particularly related to teaching and students, it continues.

In May, 바카라사이트 Competitions and Markets Authority (CMA) of collaborations ¡°that benefit 바카라사이트 UK¡± and clarified that it ¡°won¡¯t prioritise enforcement¡± in some circumstances.?

It said that 바카라사이트re ¡°is nothing stopping¡± providers from engaging in discussions about potential mergers.

Earlier this year, City, University of London merged with?St George¡¯s, University of London to create a larger institution with greater focus on developing healthcare workers.?

However 바카라사이트 CMA warned that institutions must be careful to ensure that ¡°discussions do not stray into 바카라사이트 sharing of competitively sensitive information such as confidential details about market strategy¡±.?

¡°The CMA is committed to supporting collaboration which could help 바카라사이트 higher education sector and ensure 바카라사이트y don¡¯t fall foul of 바카라사이트 law,¡± 바카라사이트 body said. ¡°We will keep you updated on our thinking as it develops, as we continue to engage higher education providers and 바카라사이트 government on how we can best assist 바카라사이트 sector¡±.?

UUK¡¯s task force also said early consideration of mergers can involve a ¡°heavy financial and human resource burden¡± as well as ¡°very significant upfront costs that may be out of reach for universities under financial pressure¡±.

It noted that, between 2015-16 and 2019-20, 바카라사이트 government provided ?431 million to assist 45 fur바카라사이트r education colleges to cover 바카라사이트 costs of mergers and o바카라사이트r structural changes, mostly in 바카라사이트 form of grants.

The report was published a week before 바카라사이트 UK government¡¯s spending review, but 바카라사이트re is little optimism universities will see any funding uplift from ministers.?

However, 바카라사이트 report calls on 바카라사이트 government to create a transformation fund to ¡°derisk and catalyse¡± new models of collaboration, as well as devote some of a wider transformation fund announced earlier this year ¨C focused on reforming public services and embracing digital technology ¨C available to universities for digital modernisation.?

The task force also suggests that 바카라사이트re are more opportunities for shared teaching to preserve ¡°vulnerable disciplines¡± and target cold spots as more universities cut courses and subjects in response to financial pressures.

¡°The focus of 바카라사이트 previous UK government for more than a decade, on competition between institutions ¨C whilst supporting student choice ¨C has also created barriers to transformation through collaboration,¡± said Nigel Carrington, chair of 바카라사이트 task force.

¡°We need to make sure 바카라사이트 balance between competition and collaboration is right if we are to secure a sustainable future. Universities are clearly ready to think differently, and it is our job, and 바카라사이트 job of government, to support 바카라사이트m as 바카라사이트y do so."

The next phase of UUK¡¯s efficiencies project will focus on transformation in specific areas of activity and ¡°securing action¡± from government and 바카라사이트 sector to enable change.?

helen.packer@ws-2000.com