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UK Universities Face Financial Crisis with Potential Deficits

New analysis predicts that up to 72% of higher education institutions could be in deficit by 2025-26.

  • Financial pressure on universities is increasing, with a potential £3.5 billion reduction in net income projected.
  • The Office for Students (OfS) warns that many institutions have been overly optimistic in their student recruitment forecasts.
  • International student numbers have decreased significantly, with 16% fewer visa applications compared to last year.
  • Despite a rise in tuition fees, increased national insurance contributions are negating financial gains for universities.
  • Medium and smaller institutions, as well as specialist providers, are most at risk, prompting calls for bold reforms.
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