‘University cash crisis will impact future of R&D’ warning
17 Nov 2024
Reports that nearly three in four universities are facing deficits in the next financial year raise serious questions regarding the future of UK research and development, warns a leading higher education body.
The National Centre for Universities and Business (NCUB) cited the latest report from government body the Office for Students, indicating that as much as 72% of UK universities are likely to be in the red by the 2025-26 financial year.
NCUB Head of policy and engagement Rosalind Gill said the likelihood of this scenario constituted a serious threat to higher education and the wider economy.
She stated: “This issue isn’t just about universities – it’s about the prosperity of the UK as a whole. The consequences of closures or scaled-back activities would ripple across industry, impacting businesses that rely on graduate talent and cutting-edge research.
“The university sector is a major reason why multinational businesses invest in the UK, providing the workforce and research collaborations that fuel innovation. We need solutions that protect the unique role universities play in driving growth and global competitiveness.”
Universities remained a key driver of innovation, skills, and economic growth. However, the financial picture painted in the Office for Students’ report, coupled with recent Budget changes could suggest the likelihood of a severe impact on research and economic activity.
Gill said that the Chancellor’s rise in employer National Insurance contributions alone had significantly raised staffing costs for universities by £372 million a year, adding to an already grim financial situation.
Pic: Martin Lopez
