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Stakes are high if university funding crisis continues

Published date
The funding crisis in higher education is hitting the North East hard, with disputes at Newcastle and Sunderland universities serving as stark reminders of a sector under immense strain.

These institutions are not only centres of learning and innovation but also significant employers in the region.

At Newcastle University, staff are preparing to ballot for industrial action over £35m in cuts. 

Promotions have been halted, travel restricted, and a voluntary severance scheme introduced, with no guarantee against compulsory redundancies.

At Sunderland University, meanwhile, staff face restructuring and job losses, compounded by a management decision to prevent affected employees from discussing their situation with colleagues. 

It speaks to a broader crisis in higher education funding, where the burden of financial shortfalls is being unfairly placed on staff.

The financial instability of universities is not a new issue. 

Years of underfunding, coupled with a reliance on international student fees, have left the sector exposed.

Recent figures show that nearly three-quarters of higher education providers in England could be in deficit by 2025-26.

This is a direct result of Tory policy decisions: undergraduate tuition fees have been capped below inflation for years, while grants for teaching have been slashed by over 60% since 2010.

At the same time, costs for universities have soared, from energy bills to staff pensions.

The result? Institutions are forced into a cycle of cuts that erode both their workforce and their ability to deliver quality education.

The stakes are particularly high for the North East.

Universities here are not just centres of research and teaching; they are economic anchors. 

Newcastle University alone supports thousands of jobs, both directly and indirectly, through its spending on staff, goods, and services.

Sunderland University plays a vital role in widening access to education, especially for working-class and mature students. 

Cuts to these institutions threaten to undermine their ability to fulfil that anchor role, with dire consequences for the region’s economy and social fabric.

Higher education should be treated as a public good, not a commercial marketplace. 

Universities educate the next generation of workers, drive innovation, and conduct research that tackles some of society’s biggest challenges, from climate change to public health.

Yet the current funding model prioritises profit margins over public benefit.

The reliance on international fees, for example, has turned universities into precarious businesses vulnerable to global shocks.

When international student numbers dip, as we’ve seen recently, staff pay the price in job cuts and worsening conditions.

A different approach is possible. 

Proper public investment in higher education can secure the future of the sector, ensure fair working conditions for staff, and keep education accessible for all.

This means reversing the cuts to teaching grants, rethinking the reliance on tuition fees, and addressing the growing student debt burden.

For too long, universities have been left to fend for themselves in an increasingly hostile funding environment.

The disputes at Newcastle and Sunderland universities are a warning sign. It’s time to invest in higher education—and the future of the North East.

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