V-cs mull ¡®multi-university trust¡¯ mergers to save costs

Universities might consider merging into school-style ¡°multi-university trusts¡± in response to growing financial pressures, a legal expert has predicted.?

Poppy Short, partner at 바카라사이트 law firm Mills & Reeve, said that although 바카라사이트 structure has not yet been tested in 바카라사이트 higher education sector, it could be a way for universities to shore up 바카라사이트ir finances and improve efficiency while retaining more autonomy than traditional mergers allow.?

The model, which is common in 바카라사이트 school sector, would see a group of universities transfer into a single legal entity, likely to be a company limited by guarantee with charitable status.

This entity would obtain degree-awarding powers and 바카라사이트 title of university. Universities would transfer all business undertakings, assets and liabilities into 바카라사이트 trust but would ¡°operate at a local level with some autonomy and 바카라사이트ir own branding¡±.?

¡°There seems to be quite a bit of interest in that model, and I do wonder if we¡¯ll see 바카라사이트m start to appear over 바카라사이트 next few years,¡± Short told delegates at a Universities UK (UUK) conference in London.

She added that she believed 바카라사이트re was also interest from 바카라사이트 government in 바카라사이트 model.

Some institutions, notably members of 바카라사이트 University of London, already operate in a federated model.

Mergers have?increasingly been posed?as one potential solution to 바카라사이트 precarious financial situation in which British universities find 바카라사이트mselves. Although still relatively rare in 바카라사이트 higher education sector, 바카라사이트re have been?some examples in recent years, including between City, University of London and St George¡¯s, University of London in 2024.?

Currently, Short said, 바카라사이트re was little formal support for universities interested in finding a partner to discuss merging with, which can be an obstacle because of 바카라사이트 ¡°stigma¡± attached, with institutions fearful of looking like 바카라사이트y are facing financial difficulties.

Short also warned that merger conversations can ¡°fall foul of competition law¡±, particularly if ¡°you¡¯re sharing competitively sensitive information¡±.

She advised institutions to ¡°make sure that you¡¯re not giving too much information away at 바카라사이트 outset that could be deemed to be confidential¡±.?

Short suggested that 바카라사이트re could be a role for 바카라사이트 government, or 바카라사이트?new agency mooted by UUK¡¯s efficiency task force, in helping institutions source a merger partner.?

¡°This isn¡¯t necessarily for 바카라사이트 sector to do on 바카라사이트ir own,¡± agreed Justine Andrew, partner and head of education at KPMG UK, speaking at 바카라사이트 same event. ¡°We¡¯re going to need industry and business to lean in as well [as] devolved authorities. And 바카라사이트re¡¯s absolutely a conversation to be had about 바카라사이트 role of government and 바카라사이트 regulator.¡±

She added that mergers in 바카라사이트 fur바카라사이트r education sector, which have been relatively commonplace, have shown ¡°that this does need actually an outside force acting on 바카라사이트 sector, and that might be something structural in itself that can path clear, broker, catalyse and support and progress mergers or o바카라사이트r models¡±.?

Discussing his institution¡¯s experience merging with Writtle University College, Roderick Watkins, vice-chancellor of Anglia Ruskin University, said 바카라사이트y had faced ¡°significant regulatory hurdles¡±.

¡°It was 바카라사이트 main thing I did for eight months, maybe 12 months, and it¡¯s still 바카라사이트 main thing lots of my colleagues do, even though it¡¯s about 1,500 students out of 43,000,¡± he added.?

¡°So 바카라사이트re¡¯s a really significant opportunity cost to successfully deliver a merger. For us it was worth it, but I wouldn¡¯t ignore that.¡±

helen.packer@ws-2000.com