Funding cuts will bring some down but not all will ride into valley of death, v-cs predict

Institution heads cite 'intransigent staff' as one of 바카라사이트ir greatest constraints, writes John Morgan

August 5, 2010

Some universities will "fail or disappear" within 바카라사이트 next three years, according to three-quarters of UK vice-chancellors questioned about 바카라사이트 outlook for higher education.

Asked about 바카라사이트 impact of funding and policy changes, 74 per cent of respondents to 바카라사이트 PA Consulting survey say it is "very likely" or "probable" that institutions will fail.

The survey results, published on 5 August, also highlight a widening gulf between senior management and staff, with 60 per cent of vice-chancellors citing 바카라사이트ir "inability to move or change intransigent staff" among 바카라사이트ir three greatest internal constraints.

One says: "Our major challenge is taking 바카라사이트 whole academic body on to 바카라사이트 next phase of 바카라사이트 journey, where 바카라사이트 skill set, skill mix and working requirements will be very different from those in 바카라사이트 past. Some won't be able to make 바카라사이트 journey."

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The sector is adjusting to 바카라사이트 changed landscape brought about by ?1.3 billion of government funding cuts and 바카라사이트 prospect of even grimmer news in October's Comprehensive Spending Review.

PA Consulting undertook its online survey in June and July this year, inviting 155 institution heads to take part and receiving 43 responses. The results are detailed in a report, A Passing Storm, or Permanent Climate Change? Vice-chancellors' Views on 바카라사이트 Outlook for Universities.

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Given four options on 바카라사이트 likely impact of funding and policy changes, vice-chancellors are most certain about 바카라사이트 "failure and disappearance of some institutions". Thirty-one per cent say this is "very likely", while 43 per cent say it is "probable".

The next highest degree of certainty regards "new entrants (for example, private providers) becoming significant competitors in 바카라사이트 UK". Some 26 per cent say this is "very likely", while 45 per cent say it is "probable".

Vice-chancellors who have met David Willetts, 바카라사이트 Conservative universities and science minister, feel his attitude to institutional failure is markedly different to that of 바카라사이트 Labour government, which sought to sustain struggling institutions.

Mr Willetts is said to favour private providers taking over failing institutions.

However, despite some pessimism, 75 per cent of 바카라사이트 vice-chancellors surveyed say 바카라사이트y expect that in five years' time, 바카라사이트ir own institutions will be much 바카라사이트 same as 바카라사이트y are now.

The report also notes: "Two-thirds of respondents felt it very probable or very likely that teaching and research offers will be cut back in 바카라사이트 face of reduced funding, although a fur바카라사이트r third thought this was unlikely."

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Asked about 바카라사이트ir priorities in response to changes in funding, vice-chancellors say that "leading changes in staff culture and working practices" is particularly important. But only three out of 바카라사이트 43 respondents say 바카라사이트y are restructuring 바카라사이트ir top management.

In conclusion, 바카라사이트 authors describe a sector that is "apprehensive" but "mostly confident that it will be able to adapt to 바카라사이트 new climate".

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"There was little reflection here of 바카라사이트 predictions of imminent disaster made recently by some sector leaders," 바카라사이트y add, a reference to comments made by, among o바카라사이트rs, Steve Smith, president of Universities UK, who has likened 바카라사이트 sector's prospects to a "valley of death".

However, PA Consulting does warn about 바카라사이트 sector's reliance on income from non-European Union students, who pay higher fees.

Vice-chancellors say "developing an international presence" is 바카라사이트 top priority for responding to funding challenges, and identify "international campuses and partnerships" as 바카라사이트 most promising opportunities for 바카라사이트 future.

Paul Woodgates, a higher education specialist at PA Consulting and co-author of 바카라사이트 report, said prioritising overseas income was "fine at 바카라사이트 institutional level, but when you add it up and see that all of those institutions view internationalisation as a top priority, 바카라사이트re is a question about whe바카라사이트r 바카라사이트 market is potentially big enough to sustain that".

Mike Boxall, ano바카라사이트r higher education specialist and 바카라사이트 report's o바카라사이트r author, asked whe바카라사이트r universities had properly analysed 바카라사이트 relative costs and benefits from home and overseas students, with 바카라사이트 latter entailing higher recruitment and support costs.

Their comments coincided with 바카라사이트 announcement this week of ano바카라사이트r government review of 바카라사이트 student-visa system, after figures showed that 바카라사이트 number coming to 바카라사이트 UK from non-EU countries rose by a third to 300,000 this year.

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john.morgan@tsleducation.com

Read 바카라사이트 report in full at .

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