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
.
