The Education Secretary told the BBC that universities should get their finances in order before seeking help from taxpayers.
Bridget Phillipson told Radio 4’s Today programme that universities, as independent bodies, are expected to “control their budgets”.
This comes in response to calls from the University Union (UCU) for bailouts for financially struggling universities.
Mr Phillipson said Labour recognised universities as a “public good” and would seek to strengthen the funding of the university sector in the long term.
UCU general secretary Joe Grady warned at the weekend that universities face “catastrophe” without an urgent rescue package from the government.
In its latest review of university finances, the Office for Students (OfS), the higher education regulator, said: 40% of universities A deficit was predicted.
The report suggested some universities were making optimistic predictions about recruiting international students, who bring in more tuition fees than British students.
The education minister said he wanted to maintain the postgraduate visa route, adding: “We want to welcome international students to the country.”
Which universities are making cuts?
Vivienne Stern, chief executive of the UK Universities Association, which represents more than 140 universities, told the Today programme on Monday that “large parts of the university sector are struggling”.
She said 70 universities were currently undertaking cost-saving initiatives, adding that she would be “quite surprised” if almost all universities were not doing the same by the end of the year.
“We’ve made far more than cuts that nobody will notice,” she said, adding that the upcoming cuts will soon start to affect student-faculty ratios and the courses the university can offer.
Universities across England are restricting finances, with some looking to cut staff by up to 10% and close or merge courses.
Staff at Goldsmiths University, London Mark the boycott There are plans to cut staff there too.
While the new administration will not provide any immediate taxpayer-funded bailout to universities, it is clear that it will still need to find long-term solutions to the academic industry’s financial problems.
Last week the new government accepted the resignation of Lord Wharton, chairman of the OfS.
At the same time, he continued to support the Conservative Party in the House of Lords and was criticised for being impartial in that role.
The Education Secretary said he would set out details in Parliament this week about how OfS should work.
She is expected to tell the bank to focus on its biggest job: ensuring the financial stability of the industry, rather than getting embroiled in culture war debates.
This institution previously Free speech surveillance On university campuses, new powers to levy fines on institutions and student governments are set to come into effect this summer.
