The Covid-19 pandemic has (shock, horror) had a devastating effect on the finances of UK Universities. Depending on how many people choose to defer (or even abandon) their studies, the Institute for Fiscal Studies (IFS) estimates the combined shortfall will be between £3bn and £19bn (https://www.theguardian.com/education/2020/jul/06/uk-universities-facing-possible-financial-disaster-research-says). The impact will, of course, fall unequally on the varied mix of institutions. Their sizes, ranges of studies, recruitment patterns and reserves are wildly different. The IFS predicts that as many as 13 Universities could 'go to the wall' and anyhow most will have to lose large numbers of staff to get anywhere near breaking even. All this comes at the same time as the financial pressures exerted by Brexit (with declines in EU funding and students from Europe). The IFS suggest that a relatively small bailout (£140m) might save the situation and preserve a sector that was, until recently, a jewel in the crown for UK plc. I am not optimistic, as a majority of Members of Parliament (irrespective of party) graduated from one rich University. I don't think that MPs and their leaders fully appreciate the importance of the Higher Education sector in diverse areas of the UK.
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