Higher education in the º£½ÇÊÓÆµ is facing an existential and financial crisis. While such challenges have been framed in terms of falling international numbers or looming deficits, the real issue is far more fundamental namely that universities are stuck with an outdated model that no longer aligns with the economic, technological, and social realities of the 21st century.
If we are serious about creating a resilient, dynamic, and inclusive economy, then we must reimagine what a university is for and how it operates. The traditional university structure anchored in three-year academic degrees, slow-moving governance, and minimal engagement with industry was designed for a different era and is now increasingly out of step with the needs of students, employers, and the wider economy, especially as global shifts in technology fundamentally reshape the labour market.
The World Economic Forum recently forecast that half of the global workforce will need re-skilling by next year, suggesting a wholesale reinvention of the skills required to participate in the modern economy.
Yet most universities continue to operate as though nothing has changed, offering courses often unrelated to the practical needs of employers and delivered in rigid formats that do little to support lifelong learning or regional economic development.
The result is a growing disconnect between graduates and job readiness, and between institutions and the communities they are meant to serve. At the same time, students are accruing significant debt in exchange for qualifications that do not always translate into worthwhile employment.
It is no longer good enough to tinker at the edges and what is needed is an institutional model designed for the future. Drawing on the strengths of the former polytechnics, a modern university built around applied learning, employer partnerships, and flexible delivery could provide exactly the kind of focused, responsive education now required for the economic success of this nation.
This would not be a lesser version of the current university model but an equal alternative that combines academic rigour with strong industry engagement and a clear emphasis on employability.
From the outset, students at such an institution would be immersed in real-world projects, often in collaboration with local businesses. The learning environment would prioritise problem-solving, teamwork, and technical application rather than abstract theory alone.
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Programmes would be designed in close partnership with employers to ensure they are aligned with emerging skill demands, and qualifications would be modular and stackable, allowing learners to move in and out of education throughout their careers. Degree apprenticeships and two-year applied degrees would sit alongside short courses and micro-credentials, providing learners with both flexibility and relevance as part of a lifelong approach to learning.
Rather than viewing the decline of the traditional university model as a crisis, we should treat it as an opportunity to reimagine higher education in a way that is more practical, inclusive, and responsive to local needs. Central to this new vision is the better integration of further and higher education into a single, coherent pathway that supports learners from the age of 16 through to degree and even postgraduate levels. By delivering foundation programmes within FE colleges that are backed by strong partnerships with universities, we can create a seamless educational continuum that not only builds on the strengths of both sectors but redefines what it means to be work-ready in today’s economy.
Crucially, this new university model would be rooted in place, recognising that every region has its own economic strengths and workforce needs. For example, an institution aligned with the green economy in one part of the country could look very different from one focused on creative industries or advanced manufacturing elsewhere.
However, each university would share a common purpose namely to support the growth of local industries, improve productivity, and retain talent within communities. In doing so, they would become engines not only of education but of regional economic renewal.
Technology must also be embedded into the DNA of this new model and whilst AI has been viewed as a threat by universities, it can also enable personalised learning, better data on student progression and more efficient administration, empowering educators to spend more time mentoring and supporting students.
At the same time, a carefully managed approach to internationalisation would avoid the pitfalls that many universities have recently faced. By diversifying recruitment and capping income from overseas students at sustainable levels, institutions can build global engagement without becoming financially dependent on volatile markets.
What is ultimately at stake here is not just the future of education but the future of our economy and society as the º£½ÇÊÓÆµ cannot afford to be held back by the institutional inertia that many of those leading higher education have recently demonstrated. We need universities that are agile, applied, and aligned with the real needs of students and employers alike. We need governance structures that are outward-looking, responsive, and accountable to the regions they serve. And above all, we need a shift in mindset that values impact over prestige, outcomes over tradition, and collaboration over isolation.
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The debate about the future of higher education should no longer be focused on preserving a system that is no longer fit for purpose.
If those running academic institutions are willing to imagine the future rather than cling to the past, then the opportunity exists to build a new generation of universities that are grounded in purpose, driven by outcomes, and truly aligned with the needs of learners, businesses, and communities.
Certainly, the recent upheaval in the sector means that there is the chance to create a more agile, applied, and inclusive higher education model.
However, the question is whether any university leaders courageous enough to let go of what no longer works and ambitious enough to build what comes next if or will they continue cling to strategies that are no longer fit for purpose? If it is the latter, then they will have no-one to blame but themselves for the decline of higher education in the next decade.