The UK government must guarantee that no university goes bust as a result of the coronavirus, Labour¡¯s shadow minister for higher education has said.

In a letter to universities minister Michelle Donelan, Emma Hardy called on the government to underwrite higher education funding and prevent institutions from going bankrupt following an ¡°unprecedented set of challenges¡±, arguing that institutional closures or massive cuts could cause harm to students, social mobility and the country¡¯s chances of economic recovery.

¡°Our universities are not just businesses and should not be treated as such,¡± says Ms Hardy, who added that ¡°Labour is calling on the government to guarantee that no university will be allowed to go bankrupt¡±.

The letter¡¯s publication follows a report in the that the Treasury is resisting calls from Universities UK for a ?2 billion rescue package to help higher education institutions during the coronavirus crisis.

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A report by London Economics for the University and College Union, published on 23 April, says that UK universities are facing a ?2.6 billion shortfall in the next academic year, which could result in 30,000 job losses in higher education and another 30,000 in local communities.

In her letter, Ms Hardy said that ¡°universities will play a vital role in the recovery and future prosperity of our country¡± and it was ¡°essential, therefore, that no institutions are allowed to fall¡±.

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¡°Allowing any higher education institution to fall hinders the ability of our economy to bounce back from this crisis and denies UK citizens the equality of opportunity that should be a given right,¡± said Ms Hardy.

¡°My greatest concern is that a failure to provide timely and comprehensive support to our universities in the face of this crisis will create ¡®cold spots¡¯ in the country for access to higher education to those who benefit from it the most,¡± added Ms Hardy, saying that ¡°students from disadvantaged backgrounds, and part-time and mature students¡­.will suffer disproportionately if regional HE institutions close.¡±

Warning that the loss of international students following the Covid-19 crisis would cause a ¡°huge reduction in income which could have catastrophic effects on [universities¡¯] ability to operate¡±, Ms Hardy said that a ¡°joined-up approach in promoting our UK universities¡± abroad would be needed, as would ¡°increased clarity from the ÁñÁ«ÊÓƵ Office about student visas¡±.

Ms Hardy also asked the universities minister to provide additional support for students, particularly those ¡°who relied on part-time work that can no longer support themselves¡± following the Covid-19 shutdown. She also raised concerns about an ¡°increased dropout rate when the semester starts again and further decline in the number of students from lower economic social groups attending university because of the cancellation of face-to-face widening participation events and visits¡±.

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¡°Universities bring significant benefits to their local communities,¡± said Ms Hardy, noting their ¡°central role in supporting local economies, employ large numbers of staff and contribute enormously through volunteering, cultural events and community activities¡±.

¡°If these institutions were to disappear, the damaging consequences would extend beyond the classroom and impact locally and nationally,¡± said Ms Hardy.

jack.grove@timeshighereducation.com