Image: British Province of Carmelites [CC BY 2.0], via Flickr
Board discussed “worst-case” planning, while sources suggest UKRI has created “observatory” on university finances
UK Research and Innovation has focused on “worst-case-scenario planning” for a university “exiting the market”, while Research Fortnight understands it has set up a body to explore the potential impact of the sector’s funding crisis on research.
A UKRI board meeting earlier this year—minutes of which were recently published—discussed the “financial sustainability of the research system”.
The board of the national funding agency, which includes chief executive Ottoline Leyser (pictured), “noted the financial challenges that universities and institutes are facing” from factors such as “acute issues around international student recruitment and inflation”, the minutes state.
“The board identified that UKRI should consider worst-case-scenario planning for both local and system-level events to help plan for incidents,” they add.
“Focus should be given to the scenario of a university ‘exiting the market’ and how UKRI might respond to such an incident. UKRI needs to ensure it is protected and that mitigations are in place.”
‘Pure business sense’
Sector sources have also told Research Fortnight that, under the previous Conservative government, the Department for Science, Innovation and Technology asked UKRI to set up an “observatory” on university finances, to consider issues including the potential impact of a university bankruptcy on UK research.
Diana Beech, chief executive of higher education representative body London Higher and a former adviser to science ministers, said UKRI’s scenario planning makes “pure business sense”.
“[But] its admission that it is preparing for the worst-case scenario does nothing to allay fears that at least one large, established university may be at risk of going under,” she added.
Pauline Muya, a freelance research consultant with more than 30 year’ experience in the sector, said that while it was “significant” for UKRI to be taking those steps, it was “responsible that they [were] talking about” such scenarios.
A government spokesperson told Research Fortnight: “The government is acting to establish certainty and sustainability for the higher education sector.
“That is why we have appointed Sir David Behan as interim chair of the Office for Students [the English higher education regulator] to oversee the important work of refocusing its role [and] to concentrate on key areas including monitoring financial sustainability.”
UKRI did not respond directly to a request for comment but referenced Dsit’s response.
What if?
The precise impact on research of a university going bankrupt would vary widely depending on the nature of the institution in question, said Muya.
“At the granular level, it’s about individual principal investigators who’ve been awarded grants—which could include fellowships and multi-partner collaborations,” she added.
When it comes to universities’ student protection plans, they are “generally focused on taught students”, observed Ian Carter, head of Carter Research Navigation, which advises universities and sector bodies on research management and policy.
“As such, an affected institution’s plan may not be as detailed about research students as it could be,” he added.
“There are well-established processes for academic staff moving institutions, and hence moving their research teams, projects and funding.
“UKRI [has] a role in that under normal circumstances, so in current circumstances [it] might ensure they are ready and able to support such moves if they become necessary.”
Some form of replacement grant could be given to the institution to which researchers transfer, Carter suggested, which would allow teams to get “established more quickly” and “reduce some of the anxieties involved”.
Assess vs mitigate
Graeme Reid, chair of science and research policy at University College London, said he would “draw a sharp distinction between observing and assessing” the impact of a university financial crisis or bankruptcy and “taking ownership of the solution”.
“Mitigation could take many shapes so I can only speculate but, for example, UKRI might ask for assurances that a research team would transfer to another institution in the event the university went bust,” he told Research Fortnight. Reid questioned whether it would be in UKRI’s remit to take responsibility for such a situation.
“One of the towering strengths of the UK research community is the diversity of institutions that do research,” he continued.
“If we want a global standing, and we want to be attractive to global businesses and global competitors, then we need some larger, high-profile institutions—but we also want to have a diversity of organisations doing research.
“But that diversity is under threat if university finances are not sufficiently robust.”