University Governance And The Financial Challenges Posed By Coronavirus

• Published date: 18 June 2020
• Author: Con Alexander
• Subject Matter: Corporate/Commercial Law, Consumer Protection, Coronavirus (COVID-19), Charities & Non-Profits , Education, Financing, Operational Impacts and Strategy
• Law Firm: Veale Wasbrough Vizards

There is increasing public awareness of the challenges facing universities as a consequence of coronavirus (COVID-19). Not least are the adverse financial implications raised by reductions in tuition fee income...

...and revenue from housing, catering and conferences. Many within the UK's higher education sector are already operating on narrow margins and have in past years taken on significant amounts of debt.

While some support has been announced for universities, the government has also said that "access to the business support schemes, reprofiling of public funding and student number controls should be sufficient to help stabilise most providers' finances .. Should that not be sufficient, such that a higher education provider finds themselves at risk of closure, the government will only intervene further where we find there is a case to do so .. and as a last resort."

The OfS has also consulted on a new time limited condition of registration...