UK universities are in crisis – and Labour has taken the first step towards saving them | Philip Augar

More than a third of higher education institutions are running at a loss.

A handful are at risk of government bailout and some have had to shed staff and courses.

Labour ’s recent decision to allow a small increase in university tuition fees in England to 9,535 a year is not a complete solution.

But it sent a signal that the government is listening to the sector.

The optimistic bias that has characterised university governance in the past decade needs to be replaced by hard-headed realism.

The teaching and research model will still be right for many universities, but for others it won’t.

That will be painful for some institutions that may need to shrink or partner.