Universities: Funding and Employment

Debate between John McDonnell and Mohammad Yasin

Wednesday 2nd April 2025 Westminster Hall

[Mohammad Yasin]

I will come to that point about universities in Scotland in a minute.

Even prior to the 2022 reforms, the UK had the lowest share of public funding in tertiary education among OECD member countries, with the majority of the funding coming from fees and student loans. The tuition fee system is unpopular with both students and universities. Although reversing it may be unrealistic, the model has to be improved.

A disturbing pattern of job cuts is emerging, with universities following suit at an alarming rate—even those that are running a surplus. Critical administrative and technical staff, key to the smooth running of courses and the welfare of students, are often the first to be let go. We are witnessing widespread deficits, restructuring, fire and rehire tactics and even the closure of entire departments, with faculties, schools and jobs being lost or downgraded. A survey of institutions in spring 2024 found that almost 40% had seen voluntary redundancies, almost 30% had reduced module choices for students and almost a quarter had closed courses.

In just the past month, universities in Dundee, Coventry and Bradford have announced similar measures. Perhaps most shockingly, Kingston University has proposed the closure of its humanities department. The closure of a humanities department, in a country renowned for its literary and cultural heritage—Shakespeare’s birthplace, no less—signals a troubling future for our higher education system. It is not merely a loss for humanities; it is a loss for the future of education in our nation and a blow to our global reputation as leaders in education. These subjects are disproportionately impacted by the cuts, and that reinforces the damaging notion that studying arts is the privilege of a select few—a hugely regressive step.

Under the previous Conservative Government a false narrative emerged, claiming that arts cannot equip students to thrive in a rapidly evolving world. In reality, these disciplines are adapted to a skills-based agenda, producing exceptional communicators, critical thinkers and researchers, which is still essential for a healthy democracy and a world increasingly driven by artificial intelligence.

The English higher education sector contributes £95 billion to the UK economy, while our vibrant creative industries generate £125 billion in gross value added each year. Last year, Labour unveiled our exciting plans for the arts, culture and creative industries as key sectors for driving economic growth, but none of that can be achieved without investing in the teachers and lecturers who train the next generation of skilled professionals. Post-1992 universities, which often serve the most diverse student demographics, are hit the hardest. Many students in those institutions are the first in their families to attend university and come from lower socioeconomic backgrounds. These universities are essential for students who cannot afford to live away from home.

The problem for the arts and humanities is not confined to post-’92 universities. Newcastle University, whose chancellor is the chair of the prestigious Russell Group, has announced plans to cut 300 full-time positions, including 65 academic roles. Cardiff University also plans to cut 400 academic staff, which is almost 10% of the total, and to eliminate subjects like music, modern languages, and nursing, despite ongoing NHS workforce shortages. The University of Edinburgh has a £140 million deficit forecast over 18 months, which outstrips the £30 million deficit recorded by Cardiff University. Durham University has joined the ranks of Russell Group institutions planning job cuts, with a target of reducing staff costs by £20 million over two years, starting with 200 professional services staff this year.

For a full view of the scale of the cuts, people can visit the UK HE shrinking page, compiled by Queen Mary University of London and the University and College Union, which tracks redundancies, restructures and closures across the sector.

[John McDonnell (Hayes and Harlington) (Ind)]

Before the hon. Member moves on, and to save people from going to the website, can I mention Brunel University? I have been on the picket lines with UCU, and there are large numbers of job cuts being threatened. It is a successful university that is doing everything asked of it by Government to provide skills training for the future. What is extremely disappointing to me is the refusal of management to even engage with the union to look at transitional arrangements and future planning. There must be a way in which we can work through this, after years of austerity. The Government must work with universities’ management and the unions to see the way through.

[Mohammad Yasin]

I am grateful to the right hon. Member for his comments; I must make some progress now.

Universities are major employers and significant contributors to local and national economies. A recent report on the economic and social impact of Lancaster University, for instance, found that it contributed £2 billion to the UK economy in 2021-22, with 61% of the impact felt in the north-west. If we continue to cut essential departments—English, nursing, modern foreign languages —where will our teachers and professors come from? The approach is so short-sighted. Without a strong university sector, how can the Chancellor grow the economy? Universities are central to delivering education, research and innovation in critical areas for future growth, including in science, technology, engineering and mathematics fields.

Degree-level apprenticeships are another important part of the Government’s strategy to address skills shortages and rebalance the economy. By combining academic study with practical work experience, apprenticeships offer a valuable alternative to academic degrees, but when universities shrink, the skills gap will only widen. In the blink of an eye, we are losing thousands of years-worth of accumulated knowledge. The university exists to pass expertise to the next generation; there is a moral imperative to protect it.

I urge the Government to review university governance and ask why expensive building programmes are being prioritised over investment in staff and students. Multi-year commitments on research and higher education funding are expected in June, when the Government’s spending review is finalised. The reduction in faculty options, loss of vital services and pressure on remaining staff all contribute to a diminished quality of education. This is not the future we should offer our students. We have to fix the broken funding model, safeguard staff, enhance the student experience, and ensure that our universities continue to be engines of economic growth and innovation.