While the UK digests its vote to leave the EU, attention is shifting to the result’s implications for specific parts of the economy. One sector particularly impacted by Brexit is higher education (HE).
The government has made it clear that reforms set out in the Higher Education and Research Bill, currently going through parliament, and the accompanying introduction of the Teaching Excellence Framework, are still going ahead.
However, ensuring HE will not take a hit on funding as a result of the referendum will need to be a priority for ministers. UK universities benefitted to the tune of £6.8bn from the EU’s latest Framework Programme alone. It came as no surprise then that 103 vice-chancellors, out of the UK’s circa 140 universities, signed an open letter urging voters to back ‘Remain’.
Loss of this funding stream – and any failure to replace it – presents a risk to the UK’s reputation as a world class provider of HE.
Yet there is a caveat. A shortfall in funding may only occur when the UK has formally exited the EU, a minimum of two years after the UK has triggered Article 50. This is unlikely to happen until September 2016 at the earliest. In theory the sector has at least until the end of 2018 to prepare itself.
But the sector may have more immediate concerns, specifically around the future of research funding. There is a risk bids outstanding for EU funding will be rebuffed before Britain formally exits the EU. The Horizon 2020 programme, European Social and Infrastructure Funds, and the European Investment Bank all invest significantly in the UK’s HE sector. Brexit may undermine UK universities’ applications for funds from these institutions, despite their continuing eligibility.
Already a picture is beginning to emerge of Brexit’s implications for universities and students alike. Ratings agency Moody’s has downgraded the debt of several universities in the wake of the referendum. This may affect investment in large projects that would benefit their research capability and students’ experiences.
The primary concern for EU students will be a potential change to tuition fees and ability to access UK universities. It is likely that, in the formal negotiations, the UK will try and agree a similar fee structure with EU universities as exists now. This would be mandatory should the UK remain a member of the European Economic Area (EEA) under its current provisions. However, there is no guarantee the UK will join the EEA.
Meanwhile, many UK students will lament the potential loss of the opportunity to take part in the Erasmus+ scheme. The scheme has allowed UK students to study in an EU country and is accompanied by generous funding for living costs.
Nevertheless, Brexit is not all doom and gloom. International students may feel upbeat. The Australian points-based system, often cited by the Leave campaign as an alternative immigration model, has favourable conditions for international students. New visa rules under a points-based system may favour Masters and PhD students, making it easier for them to work in the UK. There is, though, much discussion to be had on what the UK’s new immigration system looks like.
As the implications of a Leave vote unfold, the HE sector will be holding its collective breath. One thing is certain. Jo Johnson (assuming he keeps his position as Universities Minister) is in for a busy few months.