How can we fund our University of the future? Help us explore what changes we need to make to achieve our dreams in 2035 and beyond. 

Introduction 

We have big ambitions for the University and want to be able to make substantial investments to deliver our vision. Where’s the cash going to come from to do that?  

A sustainable funding model is essential for any university. UK higher education is struggling to make ends meet with many universities having to take urgent cost-cutting action.  At Manchester, we have greater financial resilience than others right now. We have the space to think carefully and act in a structured way. We will need to find more cash to fund our future, and we want your ideas to explore alternative worlds which may help us do that. 

The world in 2035 

By 2035, the demand for higher education will be greater than today as the economies in Asia, Africa and South America surge forward and expand.

The UK university sector needs to maintain and build upon its status and position to compete for the very best students globally, facilities and infrastructure: quality, excellence and financial strength will win out.

Research will be multidisciplinary with greater global collaboration as universities work together to solve local and world issues. Flexible and online learning will undoubtedly have an ever expanding and important role in 2035. On site in-person teaching will remain a key delivery mechanism especially for universities such as Manchester that have an exciting cultural and social offering as a global city region.  

IT, AI, digital and associated technological advances will undoubtedly give people a sense of greater connection and communication with one another. Automation will be ubiquitous, and some jobs and activities will disappear, and new ones emerge. What kind of institutional culture could these factors create? What will the future feel like for our people?    

The global shift will continue to be towards Asia. Chinese and other Asian universities will surely rise up the global rankings, broadening the choice of university for international students.  Demand for university education will also increase from South America and Africa as their economies grow, and the top global universities will attract the very best students.   

Three potential worlds   

World 1: Greater selectivity, no overall growth  

Headlines:  

• Focus on what we do well, retain our world rankings.  
• Exit areas of low quality to invest in the best.  
• Grasp new global and local opportunities which fit with existing excellence.  
• Maintain existing student numbers,  
• A more focussed university, perhaps feeling to colleagues like key priorities are better resourced, providing greater clarity, although a reduction in our range of activities and specialisms could also change our culture in other ways.    

Manage cost base:  

• Restrict budgets and make operational savings.  
• Performance-manage and reduce costs.  
• Simplify and standardise processes gradually.  
• Take out operating costs by doing things better and by stopping doing things.  

New income:  

• Opportunistic licence income and commercial activity.   
• Work on size and shape needs to continue.  
• International versus home needs to balance.  

Invest in excellence:  

• Invest in new and existing quality areas.  
• Selective investment.   

World 2: Growth, bigger and more efficient   

Headlines:  

• Grow to 60,000 students on campus.  
• Expand and diversify international offer.  
• Growth in research quantity and quality.  
• Match UCL scale (c.£2 billion income) and standing.  
• There could be growing pains, but also benefits for colleagues as greater income can fund the automation of routine tasks, freeing up headspace for more value-adding work.  

Manage cost base:  

• Process changes and systems improvements to drive efficiency.  
• Steady levels of change but with significant disruption to reach simple and consistent processes across the university.  
• More efficient, and thus costs are absorbed into the existing cost base.   

New Income:  

• Major philanthropy campaign target of £0.5 billion.  
• Flexible learning offer will attract a wider student base £5 million per annum: could be higher scale.   
• More tuition fees and research income from growth.  
• Increased innovation income streams from spin-outs and IP licensing.   

Invest  

• Enough philanthropy to allow investment in key areas, including innovation.  
• Increase cross subsidy to invest in key areas.  

World 3: Mega Manchester   

Headlines:  

• Merge with others to generate the UK’s ‘Mega University’.  
• Federate with Manchester HE to create a Manchester education ecosystem to drive economic growth and opportunity.  
• Oxford Road corridor would be unified as a coherent University eco-centre with Sister (formerly known as ID Manchester) and innovation at the heart of it.  
• Retain world-leading research.  
• This would change the culture of the university, to an extent determined by how divergent the cultures of the merging institutions were.  Could both create greater career opportunity for colleagues, new exciting experiences and a more impersonal place?  

Manage cost base:  

• Create significant savings opportunities due to economies of scale.  
• Requires radical process change at pace to reach efficiency in business processes and teaching delivery.  

Income:  

• Scale and ambition create opportunity for new stakeholder investment, from external and internal sources and philanthropy.  

Invest:  

• Major investment in organisational change, structure, people, systems and process.  
• An influx of teaching staff and students will give a major increase in headroom to deliver a step-change in online and in-person teaching at scale, delighting students at all entry levels.  

All worlds require: (i) significantly better processes and systems (ii) simplification and driving down costs (iii) an inexorable focus on performance, delivery and accountability.  

Conclusion   

A university that can fund its ambitions will be in control of its own future.

Our University will have the funding to make positive strategic choices and invest for the future, and we will compete and recruit in terms of global excellence. It will be an inspiring place for our people, our students and our community.   

It’s a great vision, but the effort required cannot be underestimated and requires everyone in the University to play their part in full.   

How can we fund our University of the future? The status quo won’t work. Help us explore what changes we need to make to achieve our dreams.  

Get involved  

We need your help to fund a world-class university of the future. Visit our Manchester 2035 web page to book onto a workshop (in person or online) and share your views through online feedback.  

You can also leave a comment below – all comments will be captured within the overall feedback we are collating. 

Carol Prokopyszyn, Chief Financial Officer 

Martin Schröder, Vice-President and Dean of the Faculty of Science and Engineering 

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