Chartered ABS responds to Education Committee’s report on higher education funding

The Education Committee has published a report following its inquiry into Higher Education and Funding: Threat of Insolvency and International Students.

In its report, the Committee warns that the sector is under unprecedented financial pressure despite making vital economic and social contributions.

In its recommendations, the Committee calls on the Government to take full account of the essential economic anchor role of universities in their local communities when formulating policies and responding to financial difficulties.

Professor Stewart Robinson, Chair of the Chartered Association of Business Schools, said:

"With the Office for Students estimating that the proportion of institutions reporting deficits is expected to rise to 42.7% of the sector in 2025-26, this report could not be more timely.

"Business schools sit at the heart of universities' economic and social contribution, teaching the most popular subject in UK higher education, recruiting the largest share of domestic and international students, and generating the greatest share of income for their parent institutions.

"The Committee is right to assert that if the Government wants to reduce net migration, it must provide a credible alternative funding solution and set out clearly how it intends to maintain the financial sustainability of universities.

"We strongly urge the Government to act swiftly on the Committee's recommendations to prevent further deterioration and to safeguard the sector's ability to continue serving as an engine of economic growth and public good."

The Chartered ABS submitted written evidence to the inquiry. Download our response here.

Education Committee call for evidence on threat of insolvency – Response from the Chartered ABS