Universities need to manage their own finances before seeking taxpayer assistance - the education secretary Bridget Phillipson has told the BBC in a recent interview on Radio 4's Today programme.
She emphasised that universities, as independent institutions, are expected to “manage their budgets” and acknowledged the need to establish a more stable financial foundation for the sector in the long-term.
This statement comes after the Universities and College Union (UCU) requested financial bailouts for struggling universities. UCU General Secretary Jo Grady warned that without emergency government aid, universities faced a "catastrophe."
According to the Office for Students (OfS), 40% of universities are forecasting deficits. And Vivienne Stern, chief executive of Universities UK, representing over 140 institutions, mentioned on the Today programme that the "majority of the sector is in trouble." She reported that 70 universities are implementing cost-saving measures and anticipated that almost all universities would be doing the same by year's end.
Universities across England are tightening their budgets, with some planning to reduce staff by up to 10% and others closing or merging courses. While the new government is not providing immediate taxpayer bailouts to universities, it is evident that long-term solutions for the sector's financial issues are necessary.
The financial impact of unpaid invoices will play a significant part in the challenges faced by this sector. Outstanding tuition fees, commercial debt and sundry debts are a common problem for educational institutions, and at Controlaccount we offer a comprehensive and effective debt recovery service, bringing together forty-five years of experience. We have an excellent track record of successfully collecting outstanding debt on behalf of independent schools, colleges and leading universities. To find out more speak to our team today, or view our case studies here
Source: www.bbc.co.uk
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