University of Wolverhampton ‘financially stable’ and committed to coronavirus fight
University bosses have hit back at claims they could be pushed to the brink of bankruptcy due to the coronavirus lockdown.
The University of Wolverhampton was one of three universities identified in a report as being financially vulnerable, amid suggestions its collapse would have dire consequences for the region.
But bosses today moved to pour cold water on the claims, saying that while the pandemic had impacted the sector, the city’s university was debt free and in a stable financial position.
Universities have been put under increasing pressure due to the pandemic, with concerns over a potential fall in student numbers, particularly from abroad.
Professor Geoff Layer, vice-chancellor at the University of Wolverhampton, said he was confident the university would continue to thrive into the future.
He also praised students and staff for playing a key role in the battle against Covid-19.
“The University of Wolverhampton is in a financially stable position,” he told the Express & Star.
“We are one of only a handful of universities nationally who currently have no borrowings and we have healthy reserves.
“Since 2015 our research funding has almost doubled and applications to study at the university are up on last year, whereas the sector is down.
“There is no doubt that we are all living in unprecedented times, and we need to be aware of the impact of Covid-19 on universities and the communities they serve providing valuable education, employment, research and business engagement.
“The importance of universities like ours is illustrated by our students, staff and graduates working on the frontline in the fight against Covid-19 and the work our academic experts are doing to support our communities by producing hand sanitiser, manufacturing face shields and other PPE.
“Our vision and values are focused on ensuring the courses we offer are ones which directly link to the skills needs of the region – this is what we have been doing since 1827, and that is what we intend to continue to do, acting as a catalyst for change and local economic growth.”
Prof Layer said the university was focused on subjects including construction, health, education and engineering, and worked with industries to ensure graduates are “highly employable”.
He added: “This has been a successful approach, as 96 per cent of our graduates are in employment or further study six months after graduating and we have one of the highest employability rates in the UK.
“We are also working with the rest of the higher education sector via Universities UK on a collective response to the current Covid-19 situation to ensure opportunities are still available to those that want to access higher education, regardless of their background.”
Ministers are said to be split over a bailout package for universities, with the Treasury understood to be reluctant to provide extra support.
Universities UK – the sector’s umbrella group – has asked the Government to frontload promised increases in research funding, in a bid to compensate for the loss of other revenue and subsidies.
The Department for Education is believed to broadly support the boost in research funding, arguing that efforts to deliver a Covid-19 vaccine and other treatments should not be distracted by fears of financial catastrophe.
The uncertainty stems from fears over a reduction in the number of students willing to enrol for the start of the academic year in September, particularly if social distancing policies remain in force.
Universities are currently engaged in distance learning, with the majority of campuses closed since the lockdown started last month.
This may need to continue into next year in the event of a second wave of coronavirus infections.
A spokesperson for the DfE said: “We understand the coronavirus outbreak poses significant financial challenges to the sector and are extremely grateful for the work universities are doing in the response.
“The Chancellor has announced an unprecedented package of support, including the coronavirus job retention scheme and a range of business loan schemes, to help pay wages, keep staff employed and support businesses whose viability is threatened by the outbreak.
“We recently confirmed universities’ eligibility for these schemes, and we are committed to working closely with the sector to understand the financial risks they might face, stabilise the admissions system, and help them access the support on offer.”
