The Corona virus has worsened the finances of many universities in the UK, with 13 Universities facing real risks of bankruptcy if the government does not provide financial support, according to a new study. The Institute for Fiscal Studies reports that the revenue of these top universities, where students from foreign countries are also studying, has dropped sharply and there exists heavy clouds of danger.
Researchers say the educational sector could face a severe financial crisis, with the sector losing about half of its annual revenue. Researchers estimate that the sector could face a deficit of 11 billion pounds. It accounts for a quarter of the annual income. The education department says the government announced financial support for universities in May, which will help education sector and endangered jobs.
To address the revenue problem, the education sector will also try to overcome the 2.6 billion pounds. The report published by the IFS estimates that 13 universities across the UK – which educate approximately 130,000 students – could be dealing with negative reserves by the end of 2024 as a result of the ongoing pandemic.
