Adam Thompson

I beg to move, That this House has considered the financial sustainability of higher education. It is a pleasure to serve under your chairship, Ms Vaz. Our universities are integral to a thriving United Kingdom. They drive economic growth, ensure that the workforce has the skills necessary for the jobs of tomorrow and boost the UK’s global standing. They are engines of social and economic progress, but behind those important functions lies an equally important reality: the financial sustainability of this vital sector and our economy. For almost a decade, universities have faced declining investment, despite recognition of our world-leading higher education and research system. As the chair of the all-party parliamentary university group, vice-chancellors from a range of institutions have told me that the pressure to deliver world-class teaching and research with less is becoming more acute. The Government’s announcement on 4 November 2024 of an inflationary increase in tuition fees in England cannot have been an easy decision, but it was necessary. Prior to that announcement, tuition fees had risen only once, by £250, since the introduction of £9,000 fees in 2012. Inflation has cut their value to just £5,924 in 2012-13 prices, while Government grants for teaching have declined by 78% over a decade in England. The financial picture across the UK is equally challenging. Welsh universities had their fees capped at a lower level than English institutions until 2024, and over the past decade, funding per student in Scotland has declined by over £2,500. In Northern Ireland, funding per student has lagged behind England by over £1,000 a year. The Office for Students estimates that by 2025-26, there will be a net reduction in income for the sector of £3.4 billion and, without significant mitigating actions, a sector-level deficit of £1.6 billion, with up to 72% of providers being in deficit and 40% having low liquidity.