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

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.