OfS asking wrong questions on financial sustainability, says v-c

It is “not enough” for government ministers to say the “war” against universities is over, and they need to begin to offer solutions to the “very serious problems” that the English sector faces, according to a vice-chancellor.

Sasha Roseneil, vice-chancellor of the University of Sussex, told a fringe event at the Labour Party conference that universities across the country were in “very serious trouble” because of the freeze on tuition fees that had kept undergraduate payments at £9,250 when, if they had kept up with inflation, they should have been closer to £14,000.

The Office for Students (OfS) was “not asking the right questions” on the financial sustainability of UK universities, according to Professor Roseneil, and risks overlooking the “enormous” impact that cuts are having at dozens of institutions.

She said that the English regulator had been calling university leaders to ask about their current financial situation and whether things were “getting worse” after it predicted 40 per cent would be in deficit this year.

But it was “overly focused” on questions of liquidity and whether universities would be able to prove they are going concerns in their financial statements this year, Professor Roseneil said.

“They are not asking what you are having to do at the moment, how are you managing, what is the impact of the enormous cuts to capital programmes, courses, programmes and departments.”

She said more than 70 universities had had to make cuts, according to a University and College Union (UCU) tally, and it was likely that more redundancies were to come, putting at risk institutions’ ability to continue to invest in things such as “vital upgrades to IT” and “provide the science facilities we need if we are really going to contribute to the growth agenda”.

“The reality is the picture is much worse than UCU or the OfS is recognising”, Professor Roseneil told the event organised by the Higher Education Policy Institute (Hepi), blaming the impact of the previous government’s changes to visas that removed the right for international students below PhD level to bring their dependants with them when they study.

The “most urgent” measure needed was the reversal of the policy on dependants, she added, which had caused a “cataclysmic crash” in enrolments and put programmes such as specialist master’s courses in “incredible danger” because they were not viable without the subsidy from international fees.

“Another year of that [declining international admissions] and there is going to be an enormous raft of closures of really important master’s programmes. This needs to be tackled really quickly,” Professor Roseneil said.

Trailing a forthcoming paper he has written for Hepi on student fees, economist Tim Leunig said a reset of the undergraduate finance system was needed because the current one was not working.

He said he had devised several “cost neutral” changes including reducing the student loan repayment window from 40 years to 20 and a mandatory £10 weekly repayment for all graduates irrespective of their income. Public subsidy should increase by £2,000 per student per year as part of the scheme, Professor Leunig, a former Treasury and No 10 adviser.

Alex Sobel, the MP for Leeds Central and Headingley – a seat where students represent at least 40 per cent of the population – said the new government’s door was “open” to new ideas.

He said that the current period was the “most challenging” for students and academics and there was a need to work together to solve the issues based on the “guiding principles of sustainability and fairness”.

Mr Sobel expressed support for reintroducing maintenance grants for disadvantaged students and said international students should be removed from migration figures.

He said he was proposing amendments to the Renters (Reform) Bill to address “huge issues” with student housing including banning landlords from asking for deposits worth more than three months’ rent, which he said was happening in his constituency.

tom.williams@timeshighereducation.com