Released on October 27 th 2024, the "Connect-more" report on higher education sustainability in England identifies key challenges and provides recommendations to improve resilience and collaboration in the sector.
The report, produced by Wonkhe and Mills & Reeve, is based on consultations with sector leaders and aims to guide both government policies and decisions made by universities.
Key Challenges:
- Financial Instability: The higher education sector is under financial pressure, worsened by inflation, rising costs, and fewer students enrolling. The Office for Students (OfS) has warned that “up to 72% of providers could be in deficit by 2025-26.”
- Market Limitations: The report questions whether relying solely on market principles is the best approach for higher education, especially during tough financial times. The competition-driven model has often overshadowed collaboration, hindering innovation and putting more financial strain on institutions.
- Lack of Clear Insolvency Process: The lack of clear insolvency procedures for universities not covered by the Companies Act makes it harder for the sector to adapt. This creates structural and cultural barriers, and the report warns that it could be “catastrophic” if not addressed.
Recommendations:
- Financial Management: Introduce a special regime to help universities exit the market in an orderly way, assist struggling institutions, and provide more clarity on mergers.
- Mergers: Set clear guidelines for mergers, including competition law, strategic advice, and regulatory protections.
- Strategic Collaboration: Encourage more collaboration, simplify governance, and remove barriers like VAT and procurement issues.
Leadership and Governance:
- Internal Audits: Providers are encouraged to assess their internal processes to understand how well they can collaborate, focusing on barriers and strengths.
- Mindset Shift: Leaders need to rethink collaboration by focusing on collective goals over individual ones. As one institutional leader said “Any collaboration involves a certain amount of sublimation of ego. So, you have to learn to be humble…”
Other Key Points:
- Mergers: While mergers can be helpful, they face challenges, especially around culture and finances. Universities and institutions might hesitate to acquire struggling ones due to reputational risks.
- Government Role: The report calls for a national vision, with government support and funding for strategic collaboration.
Conclusion:
The report stresses that tackling these challenges requires proactive government action, regulatory changes, and a shift from competition to collaboration. It calls for immediate, strategic planning to build a more sustainable and resilient higher education system in England.
This summary is just a concise version of the official document, by Wonkhe and Mills & Reeve, that can be read here .
