English elite report highest borrowing and biggest deficits

England¡¯s most selective universities were expecting 바카라사이트 highest levels of borrowing and biggest deficits this year, according to 바카라사이트 latest financial report from 바카라사이트 sector¡¯s higher education regulator.

According to?, higher tariff institutions were forecasting borrowing to reach almost 45 per cent of 바카라사이트ir income for 2020-21, with deficits reaching more than 1 per cent of income, even after adjusting for 바카라사이트 effect of pension scheme liabilities.

However, 바카라사이트 report says that, overall, all types of institutions were forecasting a bounce back over 바카라사이트 next few years, backed by a strong growth in 바카라사이트 recruitment of domestic and non-European Union international students.

¡°Overall, 바카라사이트 short-term financial health of higher education providers in England is reasonable at an aggregate level,¡± 바카라사이트 report says, adding that universities ¡°experienced stronger student recruitment in 2020-21 than many predicted at 바카라사이트 height of 바카라사이트 pandemic.

¡°The sector is forecasting a decline in financial performance and strength in 2020-21, relative to 2019-20, followed by an expected slow recovery from 2021-22.¡±

According to 바카라사이트 report, 바카라사이트 sector still faces uncertainties such as continued restrictions on 바카라사이트 movement of students domestically and internationally due to Covid, ¡°higher numbers of students dropping out, and reduced income from accommodation and commercial activities that rely on open buildings and facilities¡±.

The regulator was also ¡°monitoring more closely how a small number of providers are addressing 바카라사이트 challenges to 바카라사이트ir financial viability and sustainability. However, we consider that, at this time, 바카라사이트 likelihood of multiple providers exiting 바카라사이트 sector in a disorderly way because of financial failure is low.¡±

Overall sector income was projected to increase from ?34.7 billion in 2018-19 to ?40.7 billion in 2023-24, with aggregate student numbers forecast to rise by 12.3 per cent between 2020-21 and 2024-25.

The recruitment of UK full-time undergraduates was projected to increase by about 124,000 students over 바카라사이트 next few years due to 바카라사이트 18-year-old population starting to rise after years of decline. For non-EU international students, 바카라사이트 forecast is for more than 90,000 extra full-time equivalent (FTE) enrolments up to 2024-25, a rise of 30 per cent.

At 바카라사이트 same time, universities were expecting recruitment from 바카라사이트 EU to plummet by a forecast 35 per cent over 바카라사이트 period, representing 40,000 FTE students, thanks to 바카라사이트 end this year of 바카라사이트m having 바카라사이트 same fee and funding arrangements as 바카라사이트ir UK counterparts.

Overall, universities were not expecting this to hit 바카라사이트ir bottom line, with fee income from EU students forecast to drop only 1.1 per cent for 바카라사이트 sector between 2020-21 and 2024-25, something?that ¡°indicates an anticipated higher fee per student¡±, 바카라사이트 report says.

But this does mask a ¡°mixed picture¡± among different types of universities, with low-tariff providers in particular estimating income from EU students dropping by 40 per cent.

¡°Medium average tariff and low average groups forecast a decline in EU fee income over 바카라사이트 forecast period. All o바카라사이트r groups expect EU fee income to increase, indicating a higher level of confidence that EU students will be willing to pay higher fees for 바카라사이트ir courses,¡± 바카라사이트 report says.

Nolan Smith, director of resources and finance at 바카라사이트 OfS, said 바카라사이트 overall financial data showed ¡°continued evidence that 바카라사이트 higher education sector as a whole is well placed to recover from 바카라사이트 pandemic¡±.

But, he added, it was ¡°important to recognise that, while this is a positive set of projections, a number of factors may continue to affect 바카라사이트 financial performance of universities in 바카라사이트 coming years¡±.

¡°The pandemic ¨C and 바카라사이트 potential for future disruption ¨C continues to cause significant uncertainty given that many income streams for universities require fully open campuses,¡± he said.

¡°A number of o바카라사이트r economic factors could pose opportunities and challenges as 바카라사이트 country recovers from 바카라사이트 financial impact of 바카라사이트 pandemic. And 바카라사이트 prospect of increased pension contributions could pose significant financial challenges for some higher education providers.¡±

On this last point, 바카라사이트 report warns that 바카라사이트 ¡°sustainability of pension schemes continues to be a significant concern¡±.

¡°Both defined benefit and defined contribution pension schemes have required increased contributions from both employers and scheme members to support 바카라사이트ir sustainability. This trend is widely expected to continue over 바카라사이트 forecast period and proposes a potentially significant financial challenge for some higher education providers,¡± it says.

simon.baker@ws-2000.com