This conference considered next steps for long-term funding models and the financial sustainability, resilience, and stability of the UK higher education sector, including priorities for policy, institutional planning, and risk management.
It brought together stakeholders and policymakers to discuss opportunities for refining operating models in the context of tuition fee cap increases, reintroduction of maintenance grants, expanded research funding, and the forthcoming levy on international students announced in the 2025 Autumn Budget.
Delegates also considered strategies for addressing pressures highlighted in the Office for Students’ annual financial sustainability report, including sector-wide financial stress, uneven impacts across providers, and the growing number of institutions at risk of insolvency. The agenda brought out latest thinking on approaches to resource allocation, strategic trade-offs, programme portfolio management, and long-term institutional planning - alongside approaches to achieving wider sector stability and competitiveness.
Regulation, governance & forecasting
A further focus for the conference was the evolution of financial regulation in response to heightened risk, including expectations for oversight, intervention and recovery, as well as the role of the Office for Students in shaping institutional strategy. Discussion examined how changes to quality regulation, new franchising oversight rules, and evolving accountability frameworks are influencing planning, reporting, and risk management.
Effective practice for financial reporting, scenario planning, and engagement with regulators was examined, including the use of stress testing and liquidity assessment to anticipate and mitigate risks. Discussion also considered approaches to institutional restructuring, including models for early intervention, managed transformation, and orderly market exit where required. We also expected discussion on priorities for safeguarding student continuation, managing workforce impact, and maintaining regional access to provision, alongside developing frameworks for handling redundancy, teach-out arrangements, and institutional transition.
Delegates also considered the interaction of regulatory developments with wider policy priorities including participation, rollout of the Lifelong Learning Entitlement, and protection of core teaching and research capacity - alongside implications for the balance between institutional autonomy and sector stability.
Student finance, recruitment & market strategy
Further discussion examined options for reform across tuition fee and maintenance systems. Areas for discussion included the long-term sustainability and design of the student loans system, repayment terms, the balance of funding contribution, targeting of public funding, and strategies for sustaining strategically important teaching and research provision.
Delegates assessed latest thinking on practical approaches to international student recruitment and market diversification, as well as management of compliance and reputational risk, and implications for student experience, institutional autonomy, and long-term viability.
The agenda looked at how visa policy, global competition for talent, and reputational factors are influencing recruitment strategies, international student markets, and partnerships. Consideration was given to how institutions can adapt recruitment planning and admissions strategies in response to ongoing policy volatility, including strategies for developing diverse recruitment pipelines, improving risk modelling, and aligning visa policy changes and institutional forecasting, as well as how institutions can foster growth alongside quality, compliance, and retention objectives.
Research, funding & commercialisation
The agenda looked at priorities for harnessing opportunities arising from increased research and development investment - including the Government’s commitment to raise annual funding to £22bn by 2029/30, and protection of core quality-related funding in real terms. Delegates discussed how this can be used to strengthen institutional resilience and support priority areas such as artificial intelligence, green technologies, and life sciences.
The alignment of institutional research strategies with national innovation priorities was examined, including the management of pressures around funding concentration and research cross-subsidy, and priorities for balancing investment in research capacity with teaching provision and wider financial sustainability.
Attendees also examined the role of spin-outs in strengthening innovation pipelines, commercial partnerships, and local economic impact, alongside challenges in governance, risk management, and financial oversight, and how institutions are supporting staff and students to engage with spin-out activity without compromising core teaching responsibilities.
Diversification, mergers & engagement with key partners
Options for diversification were discussed, including short course provision ahead of rollout of the Lifelong Learning Entitlement from 2027, operational readiness, staffing and teaching capacity, curriculum development, and allocation of administrative resources to support expanded flexible provision.
With concerns from some around workload, resource constraints, and maintaining teaching quality alongside existing programmes, those attending assessed effective strategies for engaging employers, adult learners, and regional partners. Sessions also focused on how transnational education and wider ambitions of the International Education Strategy 2026 can support international growth and income diversification through education exports, overseas delivery, and long-term institutional partnerships, as well as questions relating to regulatory compliance and quality assurance ahead of the anticipated reformed Teaching Excellence Framework.
Further sessions examined the potential role of institutional mergers, strategic alliances, and collaborations in addressing financial pressures and long-term sustainability. Consideration was given to how collaboration between institutions can support resource consolidation, expanded programme offerings, and strengthened research and teaching capacity, alongside implications for governance, regulatory compliance, regional provision, and student experience.
As well as key stakeholders those attending included officials from the Department for Energy Security and Net Zero; Department for Science, Innovation and Technology; Department for Business and Trade; Department for the Economy, NI; Ministry of Justice; National Audit Office; Foreign, Commonwealth and Development Office; Home Office; Department of Agriculture, Environment and Rural Affairs, NI; the Welsh Government; and The Scottish Government.