Uni alliance shows pressure on HE

A STRATEGIC alliance agreed by two universities in Wales may stop short of a merger but is indicative of pressures the higher education sector is under.

Governing bodies of the University of South Wales and the University of Wales Trinity St David have agreed to work more closely together, saying it will put them in a better position for the future. This suggests they are bracing themselves for chilly economic winds as clouds gather on the horizon.

If the new “alliance” strengthens the package these two can offer students that is welcome – but there has to be concern over what it may mean for jobs in future.

Before the Covid-19 pandemic hit universities in Wales had already been facing a tough time with job cuts and deficits over recent years.

Falling applications, strikes, job cuts, and reported deficits of more than £180m in 2019 led one Vice Chancellor to talk of a year of “turmoil”.

Then the Covid-19 pandemic struck, threatening the lucrative overseas student market, as well as prompting first-year applicants’ indecision over whether to start university next term with so much uncertainty around.

If anyone was in any doubt about how serious the outlook is, the Higher Education Funding Council for Wales published analysis showing Welsh universities could lose between £200m and £400m in the 2020-21 academic year. With all this in the background then, economies of scale and practicality will surely be made when two institutions come together? It is not common sense, or commercial sense to duplicate functions where they could be streamlined. Universities must be smart in a marketised system where the competition for the best students and research funding is fierce.

The question is whether it is sustainable to have eight universities in Wales, especially in the new Covid-19 climate where students may be less inclined to cross the globe to study in countries where they are charged higher fees.

There can be no doubt the higher education sector is a vital part of the economy of Wales. It generates £5bn and supports more than 50,000 jobs.

The Welsh Government has indicated its support with a Covid19-linked £50m funding package for universities and colleges announced last week.

But no-one is immune from the chill economic winds Wales and the world now face.