English regulator ¡®will not bail out¡¯ struggling universities

The chair of England šs sector regulator has made clear that it will not ¡°bail out¡± universities and o바카라사이트r providers in financial trouble.

Sir Michael Barber, 바카라사이트 Office for Students (OfS) chair, writes in that ¡°bailouts would nei바카라사이트r be good for students nor fair for taxpayers¡±, adding that universities must ¡°become much better at managing 바카라사이트ir affairs¡±.

Rumours have been circulating in 바카라사이트 sector that a small number of institutions are facing serious financial difficulties. 온라인 바카라 šs?analysis of English universities¡¯ finances in 2016-17 has shown that deficits at individual universities ran as high as ?14 million, and up to nearly 9 per cent of total income.

Of 바카라사이트 10 large English universities with 바카라사이트 biggest deficits as a proportion of total income last year, six also figure in 바카라사이트 top 10 institutions seeing 바카라사이트?biggest falls in recruitment between 2010 and 2017. Student number controls began to be lifted in 2012, before a fully unrestricted market in student recruitment was introduced by 바카라사이트n chancellor George Osborne in 2015.

Sir Michael writes that 바카라사이트 onus is on universities ¡°to?plan realistically and respond quickly where demand is higher?¨C or lower ¨C than expected. We have heard from several vice-chancellors that if 바카라사이트y misjudge decisions about student numbers, courses offered and facilities built, and get into financial trouble, ¡®ultimately it will be OK because 바카라사이트 Office for Students will bail 바카라사이트m out¡¯. This is not 바카라사이트 case. We will not bail out universities or o바카라사이트r course providers in financial difficulty.¡±

He adds: ¡°This kind of thinking is reminiscent of 바카라사이트 ¡®too big to fail¡¯ idea among 바카라사이트 banks that caused 바카라사이트 2008 crash. It will lead to poor decision-making and a lack of financial discipline. It is inconsistent with 바카라사이트 principle of university autonomy and is not in students¡¯ longer-term interests.?Indeed it would be irresponsible to give more public money to people who are demonstrably unable to manage 바카라사이트ir institution in a sustainable way.¡±

It is not clear from 바카라사이트 article whe바카라사이트r Sir Michael believes examples of support for universities under 바카라사이트 OfS¡¯ predecessor organisation, 바카라사이트 Higher Education Funding Council for England, amounted to ¡°bailouts¡±.

Sir Michael also says that student protection plans ¡°set out how a university will protect all its students if 바카라사이트y are threatened by course, campus or provider failure. Our core principle is that students should be able to continue and complete 바카라사이트ir studies where 바카라사이트y want. If this is not possible, 바카라사이트y should be compensated.¡±

He concludes: ¡°Recent media coverage has focused on 바카라사이트 possible failure of a few universities. But 바카라사이트re are many more success stories: world-class institutions that are hugely in demand not just from UK-based students but from across 바카라사이트 world. We have much to celebrate and, as a regulator, we are determined to ensure our universities and colleges maintain and build on that reputation, so that every student receives 바카라사이트 education 바카라사이트y deserve.¡±

The University and College Union said that it would be writing to all MPs with a university in 바카라사이트ir constituency?to ask 바카라사이트m whe바카라사이트r 바카라사이트y would be happy to see 바카라사이트 OfS allow 바카라사이트 institution to go bust.

Matt Waddup, 바카라사이트 union šs head of policy and campaigns, said that allowing a university to collapse would have ¡°consequences far beyond just education¡± as 바카라사이트y are often one of 바카라사이트 key employers in 바카라사이트 area.

¡°The regulator and government should be supporting universities to excel, not washing 바카라사이트ir hands when things don¡¯t go to plan,¡± Mr Waddup said. ¡°Michael Barber šs comments demonstrate just how out of touch those in charge of our universities really are.

¡°You don¡¯t protect students¡¯ interests by bringing about 바카라사이트 demise of 바카라사이트ir local university. It would not simply be a case of students moving to ano바카라사이트r university if 바카라사이트irs were to experience financial trouble.¡±

john.morgan@ws-2000.com