New taskforce launched to explore UK mergers

The taskforce on efficiency and transformation in higher education will be chaired by Nigel Carrington, former vice chancellor at University of the Arts London.

Carrington, who is an international mergers and acquisitions lawyer, will lead a group of more than a dozen experts to consider “detailed and radical options” for cross-sector working, as well as working to produce comprehensive business cases for such actions, Universities UK said in a statement announcing his appointment.

“Options under consideration will include systems and processes to drive down cost through the collective buying power of the university sector, shared delivery of some student facing services, and achieving greater consistency in the way universities operate to make collaboration simpler in future,” UUK’s statement read.

Elsewhere, it said the taskforce sets out to support leaders at individual universities by sharing good practice in efficiency, transformation and income generation.

“This could include transformation of operating models, mergers and acquisitions, federated structures, future workforce planning and understanding how AI is likely to transform teaching, research and operations.”

Carrington described the work he sets out to do as “critical”. The lawyer hopes for a “new era of collaboration and cooperation between universities to drive even greater value to students and taxpayers”.

“While institutions have been doing more and more to be as efficient as possible, they have largely been doing so at an individual level. Truly impactful transformation will best be delivered through partnership and collaboration at both a regional and a national level. It is time for some blue sky thinking on what that looks like,” said Carrington.

Truly impactful transformation will best be delivered through partnership and collaboration at both a regional and a national level
Nigel Carrington, taskforce on efficiency and transformation in higher education

“Transformation to reduce costs is not all we need though. Our work will drive meaningful change by creating evidence-led recommendations around working well together and being productive for the long term.”

The UK’s secretary of state for education Bridget Phillipson commented, describing the situation inherited by the Labour party as “dire”. She noted “tough decisions” taken by the government to “fix the foundations of higher education and deliver change for students”.

In November 2024, Phillipson announced a rise in domestic tuition fees. “With tuition fees frozen universities have suffered real terms-decline in income,” she said at the time, announcing the increase of around 3.1%.

The hike followed the Office for Students’ annual review in June 2024, which painted a bleak financial picture for England’s higher education sector, predicting that a significant decline in international student numbers, coupled with no cost-cutting activity, could lead to up to 80% of institutions being in deficit by 2026/27. 

“I welcome the launch of the UUK taskforce and look forward to seeing innovative and robust proposals to help secure a sustainable future for higher education,” said Phillipson.

“This government remains committed to restoring universities as engines of growth, opportunity and aspiration, as we seek to break down barriers to opportunity through our Plan for Change,” she continued.

“Our universities are a global success story. They are also critical regional employers, engines of growth, and equip our future workforce with the skills the UK needs to thrive. To be fit for the future, they need both sustainable funding and a shared commitment to working together to unlock savings.

“While universities have continually adapted to do more with less, we need to think carefully, but creatively, about new opportunities and models. This work will allow us to learn from each other and to work in partnership to drive meaningful change.”

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