This essay, shortlisted for the AHUA Dr Jonathan Nicholls Memorial Essay Prize, addresses recent policy attention on student maintenance funding in the United Kingdom. It proposes the establishment of a graduate-funded endowment in lieu of other measures such as increased parental contributions or the imposition of a graduate tax. After discussing…

Higher education in England has expanded in most years since the Second World War, moving from an elite system to a mass one where half of school leavers now progress to university. A lasting funding settlement, however, has proved elusive as the generosity of the post-war decades became unviable as the sector expanded. Eventually this led to the…

The vagaries of market forces are presenting a financially challenging environment for the higher education sector in England. Intense competition is leaving those overly dependent on tuition fee income in an exposed position. Despite a strong narrative for the need to diversify funding in the available higher education literature, empirical…

Over a number of years, universities have needed to become more adept at managing change as internal and external factors affect their longer term financial sustainability. That sustainability is, for many institutions, closely linked to how straightforward (or otherwise) it is to recruit student numbers of the right quality from often diverse…

After climate change, rising economic inequality is the greatest challenge facing the advanced Western societies. Higher education has traditionally been seen as a means to greater equality through its role in promoting social mobility. But with increased marketisation higher education now not only reflects the forces making for greater inequality…

With recent changes in how UK higher education is funded, universities are operating in a context in which finances are uncertain. It is more important than ever that university leaders are able to manage the finances of their organisations in ways which both provide long-term security and allow for investment in strategically important…

Universities are currently under considerable pressure to reach their stakeholders' expectations. Management tools that use strategic plans, key performance indicators and quality assurance methods are increasingly deployed. This paper aims to demonstrate how resource allocation can be aligned with institutional strategic plans with a very simple…

Grant Managers contribute to the mission of research-intensive institutions by helping them to obtain competitive funding. However, their effectiveness in helping institutions and individuals secure funding is poorly studied. In this study, we provide an assessment of the contribution of Grant Managers in attracting competitive funding for…

"Disruption"--while an evocative word triggering feelings of anxiety and perhaps even fear--also signals renewal and growth. The Higher Education (HE) sector in England has experienced some profound disruption over the years, and yet has emerged stronger and renewed in many ways. The impact of recent disruptive forces, from fees to the…

In the current and foreseeable harsh UK higher education environment, aspiring to best-practice financial management will be key to ensuring the prosperity--and indeed the survival--of any university. In this article I argue that good university financial management should provide stability to the institution, allow for investment as well as…

The accountants Grant Thornton (GT) do a welcome and nice piece of pro bono work by analysing the annual accounts of the UK's 160 (sic) HEIs and compiling a report on "The Financial Health of the Higher Education Sector"--this year entitled "The calm before the storm"! GT duly note that, if the US Department of Education's…

During the half century of the AUA's existence UK universities have experienced the fastest rate of growth and most far-reaching changes in their history. Funding arrangements in particular have changed radically. Since 1961 the finance office has been transformed from a small group of bean counters into a key management group at the heart of all…

Not for the first time in its history, the UK Higher Education sector finds itself in a position of significant financial constraint. The current coalition Government's actions to address the budget deficit have led to sweeping cuts across many public sector departments, but it is higher education that has seen the most draconian reduction in…

The two big events in higher education during 2010 were the implementation of the Equality Act, and the introduction of a new dispensation on fees and funding. The former is intended to promote equality, the latter is premised on the need for economy. In this article, the author focuses on the effect of the latter on the former. He considers this…

The UK higher education sector is facing a significant reduction in the level of public funding over the next few years. In August 2010 the Cabinet Secretary informed groups of vice-chancellors that they should prepare for cuts of 35% over the four years 2011-2015, the period covered by the next Comprehensive Spending Review. It is inevitable…