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The university system needs fundamental reform to survive, according to latest PA Consulting vice-chancellor survey


News provided by

PA Consulting

08 Jul, 2025, 13:49 GMT

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LONDON, July 8, 2025 /PRNewswire/ -- Faced with mounting pressures and an uncertain future, universities are entering a new era of realism, as 93% of vice-chancellors believe the university system needs fundamental reform to survive. After financial difficulties, the most influential drivers for reform are capped tuition fees, spiraling operating costs, changing student expectations and demand, regulatory complexity, and the risk of institutional failure, according to new research from PA Consulting (PA), the global innovation and transformation consultancy.

PA's latest survey of UK university vice-chancellors, now in its 13th year, tracks shifting sentiment across the sector. In 2023, 90% of vice-chancellors agreed that the combined level of threats and uncertainties was unprecedented. Two years on, and this has risen to 100%. In response, vice-chancellors are embracing a new phase of pragmatic growth.

KEY FINDINGS

  • Unprecedented pressure: limited growth and shifting expectations - growth expectations are falling with only 8% of vice-chancellors planning significant growth in international undergraduate recruitment, compared to 42% in 2023. Confidence has also declined across research and development (32% in 2023 to 10% in 2025), online provision (34% in 2023 to 18% in 2025), and domestic postgraduate recruitment (18% in 2023 to 3% in 2025).
  • Policy and reform: a call for coordinated action - 55% of vice-chancellors are concerned by onerous, uncoordinated regulatory demands from different authorities.
  • Innovation and AI: early steps but untapped potential - while many institutions are exploring AI, only 10% report making good progress. The majority (78%) are still in the planning stages, despite 92% of their students using AI to support their studies
  • Civic and regional collaboration: progress made, but an uncertain future - half of vice-chancellors say that increased integration with civic and regional development programmes is already well established. But only 28% believe local collaboration with civic authorities will be a prominent feature of the future higher education system.

Jonathan Barton, higher education expert, PA Consulting says: "Vice-chancellors are responding to the shifts in higher education and - while universities remain a resilient and vital sector - today's changed world demands new models of education. Universities are making tough choices, and a new era is emerging - one defined by pragmatism, innovation, and sector-led reform.

"We are seeing universities taking the right steps by getting their own houses in order. But to truly drive progress they now need a coherent policy and funding framework that supports innovation, enables collaboration, and aligns with the realities on the ground. With the right support, universities can continue to meet the evolving needs of students, communities, and the economy."

Notes to the editor

Survey methodology

During the Spring of 2025, PA invited the heads of UK universities across England, Scotland, and Wales to complete an in-depth online questionnaire, with a range of questions covering their views on the changing HE environment. The survey received 40 responses to the online survey, which were supplemented by 20 follow-up interviews with vice-chancellors, conducted throughout May and June 2025. Anonymised quotes, along with the general sentiment of interviewees, are featured throughout the report. The survey covered all types of institutions.

About PA.

We believe in the power of ingenuity to build a positive human future.
As strategies, technologies, and innovation collide, we create opportunity from complexity.

Our diverse teams of experts combine innovative thinking and breakthrough technologies to progress further, faster. Our clients adapt and transform, and together we achieve enduring results.

We are about 4,000 strategists, innovators, designers, consultants, digital experts, scientists, engineers, and technologists. And we have deep expertise in consumer and manufacturing, defence and security, energy and utilities, financial services, government and public services, health and life sciences, and transport.

Our teams operate globally from offices across the UK, Ireland, US, Nordics, and Netherlands.

Discover more at paconsulting.com and connect with PA on LinkedIn and X.

PA. Bringing Ingenuity to Life.

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