University: Are some universities predicting a deficit?

Why are Universities asking for funding help from the Government?

Transcript

00:00The difficulty with a lot of institutions is that the amount of money they have to dedicate

00:05to teaching has markedly declined because of inflation.

00:09Of course, people talk about the 9,250 fees, and of course, the 9,000 fees were reduced

00:15many years ago.

00:16But of course, inflation has stripped away the purchasing power of that.

00:23And of course, the difficulties universities are faced with is declining cost for tuition,

00:29and in many cases, of course, they have to then cross-subsidise by bringing international

00:34students in.

00:35In a recent conference, the president of Organisation Universities UK said that, quote,

00:40London economics found that overall our universities generate over £14 of economic impact for

00:46every £1 of funding.

00:47This is around eight times higher than the average return for other government projects

00:51between 2020-10 and 2022.

00:54The overseas students, which of course became, if you like, a bit of a cash cow for many