Here at Chalkface we have been following the story about the financial difficulties facing many UK universities as a direct result of the Corona virus. Now universities will be able to apply for emergency loans from the government (BBC).
This is good news for those institutions facing severe financial hardship. But any rescue would come with conditions, including cutting pay for vice chancellors and senior staff. It could also require universities to focus more on subjects with better job prospects for graduates.
A report from the Institute for Fiscal Studies had warned that 13 unnamed universities were facing insolvency. Universities have warned of cash problems from the coronavirus pandemic - particularly if overseas students cancel plans to study in the UK. To avoid the collapse of a university and disruption to students, the government has put forward "last resort" plans for how it will intervene.
This news is welcome as seeing universities go bankrupt due to the virus is in no one’s interest.
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