Hinds hits back at ‘financial crisis’ claims for universities

Education minister Damian Hinds has called out “hyperbolic warnings” on the financial sustainability of universities, days after a financial agency warned that lowering fees with no top-up from government would be “credit negative for UK universities”.

Hinds said that while there are a number of financial challenges facing universities, including increased competition for students and Brexit, tripling fees in 2012 meant that universities had not had to “tighten their belts”, unlike other sectors impacted by austerity policies.

“The financial sustainability of our universities is clearly important to the staff and students of those institutions, as well as the local economies and communities they serve. But with the vast majority of universities in a good financial position, hyperbolic warnings from some on universities’ finances are distorting the overall picture,” he said.