Storm in the Quad: A Tale of Universities at the Crossroads

• Rayhan Abdullah Zakaria, Senior Fellow of the Higher Education Academy (HEA).

It was a rainy Monday morning, the kind where the grey skies press low and the air smells like old books and wet leaves. I was huddled in our university’s coffee house, steam rising from a chipped mug, when a colleague leaned over and said something that’s stuck with me ever since:

Universities are the last bastion of free thinking, the engines of progress. How can anyone try to silence that?

He wasn’t being dramatic. We weren’t swapping dystopian movie ideas. What we were discussing was very real, and it’s happening now.

Imagine a government freezing research funding, restricting international student recruitment, stripping universities of their tax exemptions, and tightening the grip through a maze of bureaucratic controls. It sounds like fiction, but for many institutions around the world, it’s a lived reality. Even here in the UK, where we pride ourselves on academic excellence, universities are feeling the squeeze,

As I walked back from that coffee house with my thoughts churning like the storm outside, I realised that beneath the surface of daily lectures, research deadlines, and student support, two major fault lines threaten to destabilise the sector: governance and funding. These are not abstract issues—they shape how we teach, how we research, and how we serve society. Allow me to explain:

I. The Financial Fault Line

Higher education institutions in the UK are operating under increasing financial strain. According to recent analysis by Nick Hillman, universities are facing unsustainable deficits, largely due to a combination of frozen domestic tuition fees and rising operational costs.

Frozen Tuition Fees

Domestic tuition fees have remained capped at £9,250 since 2012. In real terms, inflation has steadily eroded their value. Universities UK (2024) estimates that this cap now equates to just £6,000 in 2012 money, leading to reduced investment in teaching quality, infrastructure, and student services.

Over-Reliance on International Students

Many institutions have sought to bridge the funding gap by increasing their intake of international students. While this has provided a temporary financial cushion, it is a fragile strategy. International enrolments are highly sensitive to visa policies, geopolitical tensions, and global economic shifts. The UK Home Office’s recent tightening of post-study work rights has already triggered concern across the sector.

Rising Operational Costs

Operational expenses—including staffing, estate maintenance, and digital infrastructure—continue to rise. Inflation and energy prices compound these challenges, placing institutions in a double bind: cut services or stretch resources even thinner.

What Could Help?

1. We need to lobby for a sustainable fee review mechanism that accounts for inflation and rising costs.
2. We must diversify income streams beyond tuition: think industry partnerships, micro-credentials, alumni ventures, and lifelong learning platforms.
3. We also need to invest in shared services and cost-efficient digital infrastructure that reduces overhead without compromising quality.

 II. The Governance Conundrum

The falling rain speeds up crushing against the single pane of my office window.  I see a poor wood pigeon being blown off course by the rain and the wind, just like our university a small dingy lost in the chaotic ocean of governance. I do think alongside financial challenges, governance structures across many universities are in urgent need of reform. My first semester leadership postgrads know that effective governance is critical for institutional resilience, but UK universities current governance models often fall short.

1. Overcentralisation of Power

In some institutions, decision-making is concentrated in the hands of a powerful executive team. While strong leadership is essential, University governance HEPI (2024) should not drift toward corporate-style management that sidelines academic voices. This can lead to decisions that prioritise brand and market over mission and integrity.

2. Ineffective Councils and Boards

I think governing bodies should act as strategic stewards of the institution, ensuring transparency and long-term sustainability. Yet many lack the sectoral expertise or training to navigate complex challenges. The Committee of University Chairs has long advocated for better induction and development programmes, but uptake is uneven.

3. Overregulation and Bureaucracy

While regulation is necessary, the current landscape—especially under the Office for Students  —has created a burden of compliance that can stifle innovation and demoralise staff. As HEPI and others have argued, we need a shift towards smarter regulation: outcome-focused, proportionate, and enabling.

What Could Help?

1. We need to rebalance executive and academic leadership to support shared governance.
2. We should work towards enhancing the capacity and diversity of governing councils.
3. We must move toward more meaningful regulation that supports innovation rather than obstructs it.

A Call for Sector-Wide Renewal

As I left my office and stepped back into the drizzle of a typical term-time Monday, I recognised that the challenges ahead are not insurmountable – but they do demand courage and collective action.

You see – reform must not be imposed from above but built through authentic dialogue across the sector. I do think that staff, students, alumni, employers, and policymakers all have a role to play. We must centre our vision not just on institutional survival, but on societal value. At the end of the day, universities are not corporations. They are civic institutions with a public mission.

As I step into my class, I am greeted by my 3rd-semester post grads

“Hey, how was the weekend?”

I acknowledge, smile, nod, and make my way to the front to connect my laptop to the overhead projector. The last thought in my head is that if we are to sustain our university mission, we need to rethink how we fund, govern, and ultimately value higher education. Not tomorrow. Now.