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Moving the HE landscape’s quality contours … again

The government's announcement of a major review of the National Student Survey signals a worrying shift in the HE regulatory landscape, warns Jon Scott, higher education consultant and former Pro Vice-Chancellor (student experience) at the University of Leicester.

Government plans mark a seismic shift in higher education policy

Statements from ministers this week have made it clear that higher education in England is facing significant reforms, re-setting its focus towards helping to plug the UK's skills gaps and rebuilding the economy. Fariba Soetan, Policy Lead for Research and Innovation at the National Centre for Universities and Business, argues that the proposed changes bring a welcome focus on graduate outcomes and supporting the careers of young people.

UK universities affirm 'deep commitment' to high quality TNE

Universities UK and GuildHE have commissioned the Quality Assurance Agency to develop a new approach to reviewing and enhancing the quality of UK TNE. QAA will consult on a new review method later this year and will launch a programme of in-country enhancement activity in 2021.

Cassandra calling out higher education

After a week of largely disappointing news for UK higher education, Nicola Owen, Deputy Chief Executive (Operations) at Lancaster University, fears that gloomy forecasts for the future of the sector may prove to be uncomfortably accurate.

Whatuni award winners announced

Loughborough University has been named University of the Year for the second time in three years in the latest Whatuni Student Choice Awards .

HE sector in England could fall into £4bn net debt, funding chief warns

New pressures affecting the financial health of higher education institutions in England could leave the sector facing a net debt approaching £4 billion, funding chiefs have warned.

Madeleine Atkins, chief executive of the Higher Education Funding Council for England, told delegates at Hefce’s annual meeting in London that universities’ own financial projections suggested the sector as a whole will fall into the red by as much as £3.9 billion in just two years.

A report on the financial health of the HE in England due to be published by Hefce in November paints a worrying picture of falling surpluses and increasing borrowing, with significant and growing variations in the financial position of different institutions.

The forecasts also show a growing and potentially unrealistic reliance on increases in fee income from international students to prop up finances. Institutions are projecting a 25 per cent real terms rise in revenues from overseas student fees, at a time when the latest figures from the Higher Education Statistics Agency show a flattening market.

Professor Atkins commented: “There is a question of how realistic this is going to be.”

Adding to the concerns is the fact that the forecasts were taken before institutions knew the outcome of the EU referendum. The impact of Brexit is therefore not included in the calculations.

Professor Atkins warned that if overseas student numbers and fee income failed to rise, surpluses across the sector could fall to as little as 0.2 per cent of income by 2018-19.

pestario / 123RF

Institutions have been more cautious in their forecasts for capital spending, which is expected to start to fall from its high point this academic year. A quarter of the sector is holding off from committing to further capital investment in 2018-19, which may in part be due to caution over the unfolding situation over Brexit, Professor Atkins said.

The report also points to an increasing backlog in estates maintenance, not on new buildings but on keeping existing facilities up to "baseline requirements".

Professor Atkins said the overall situation presented major challenges for university senior managers and governors. While in the past a decline in the sector's finances might have been seen as a blip "there is more of a sense now that there are many issues that could impact on financial health".

 

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