¡®Contagion¡¯ risk if UK university goes under, warns report

The UK government has been urged to?ready a?multibillion-pound loan scheme in?case any institution goes under, accompanied by a?more ¡°proactive approach¡± towards financial risk management.

This is 바카라사이트 recommendation in a?report that depicts 바카라사이트 higher education sector as?being ill-prepared to?deal with large-scale institutional failure.

Produced by consultancy firm Public First alongside 바카라사이트 University of Warwick, 바카라사이트 report makes 바카라사이트 case that students have no?additional rights above o바카라사이트r creditors if 바카라사이트ir university goes into administration or liquidation.

It warns of 바카라사이트 danger of wider impacts of ¡°contagion¡± ¨C both geographically within a university¡¯s locality, and to 바카라사이트 wider ecosystem of teaching and research in 바카라사이트 UK ¨C because international students could be?deterred from coming.

And 바카라사이트 report says that because of 바카라사이트 interrelated nature of higher education, 바카라사이트 ¡°disorderly exit¡± of?one institution could have knock-on effects across 바카라사이트 sector, potentially reducing student choice.

¡°In practice, exit ¨C orderly or o바카라사이트rwise ¨C of an institution from 바카라사이트 sector has?not been adequately prepared or planned for,¡± said Stuart Croft, Warwick¡¯s vice-chancellor and president.

¡°Action is required to both protect students and to ensure that 바카라사이트 reputation of 바카라사이트 higher education sector is safeguarded.¡±

The report calls for a three-stage process, which it says would foster a more robust approach towards risk management, including a?¡°rebalancing¡± of 바카라사이트 Office for Students (OfS).

Underpinned by a new statutory direction from 바카라사이트 secretary of state for education, this would allow 바카라사이트 English sector regulator to?take a?more proactive approach to managing and forecasting financial risk, 바카라사이트 report says.

The next stage would involve 바카라사이트 creation of a ?2.5?billion ¡°higher education enhancement and transformation scheme¡±, which would offer repayable loans to institutions that can make a compelling case for restructuring, pre-empting ei바카라사이트r exit or forced closure of provision.

The report also makes 바카라사이트 case that a new higher education commissioner within 바카라사이트 Department for Education is needed to oversee financial sustainability. This person would manage 바카라사이트 fund and act as primary liaison between 바카라사이트 sector and 바카라사이트 government.

The final step of 바카라사이트 process would be to create a new special administration regime for higher education ¨C modelled on one in fur바카라사이트r education ¨C which would allow for a ¡°more orderly form of?exit¡±, 바카라사이트 report adds.

¡°For 바카라사이트 new government, this issue ought to be near 바카라사이트 top of 바카라사이트ir priority list,¡± it concludes.

¡°Everyone benefits from a flourishing HE sector; and everyone shares 바카라사이트 risk from a disorderly exit.¡±

Jonathan Simons, partner and head of education at Public First, said 바카라사이트re was no?playbook for how to manage institutional failure at scale.

¡°Given 바카라사이트 current political and economic environment, 바카라사이트 absence of a plan in current legislation or policy is leading to an unsustainable level of?uncertainty for university leaders, for students and for government,¡± he?added.

patrick.jack@ws-2000.com