Two in five universities consider joining forces through 'multi academy trust' style models or mergers, new survey shows

Universities are stepping up their efforts to work creatively and collaboratively to unlock efficiency. Of those responding to the survey, the third annual iteration of such research:

• 81% are considering digital transformation
• 71% are open to shared procurement options
• 65% are considering collaborative structures such as federations and alliances

Currently, only a small minority have already pursued large-scale structural change such as mergers or acquisitions with another university, but the survey shows that two in five institutions are open to or actively considering mergers or acquisitions with other universities in the future.

However, the survey found significant barriers limiting the progress universities can make on their own. Universities are calling for greater flexibility over VAT and government support for the upfront costs of radical collaboration through a Transformation Fund to ensure they can make real progress on the transformational projects that will allow them to take control of their financial situation.

In the survey, a lack of institutional knowledge and skills were also cited as major barriers to transformation. Through its transformation and efficiency programme, UUK is sharing experience and best practice and facilitating access to specialist legal and financial expertise to support institutional transformation programmes.

The survey highlighted other key areas of cost cutting by universities and further measures they are considering.

• Staffing has become one of the most common areas of cost saving with 79% of universities pursuing voluntary redundancies and 79% implemented hiring freezes or pauses to recruitment over the last three years. 
• Student-facing funding cuts increased from last year’s survey, with 27% cutting student bursaries and scholarships (compared with 15% in 2025) and 13% cutting hardship funding, (9% in 2025) .
• Almost a third of institutions (31%) reported making cuts to academic research activity in the last three years, up from 14% in 2024.

The findings show changes to courses also remain widespread. Just under half of universities reported having reduced their course offering through consolidation (46%) or course closures (44%) over the last three years.

Operational cutbacks also remain common across the sector, with over half (54%) cutting back on repairs and maintenance. 13% have closed campuses in the past three years and 29% would consider doing so in the future. 

While recent uplifts to the domestic undergraduate tuition fee cap were cited as having a positive impact on finances, most English and Welsh institutions (92%) said the fee uplift would not fully offset the financial impact of planned policy changes. 

Almost all respondents report being impacted by government policy changes, cost inflation and wider financial pressures. The most cited negative impacts on institutional finances were increases to employer national insurance contributions (79% of institutions), changes to international student recruitment (67%) and pay and non-pay cost inflation (65%).

• Universities are stepping up collaboration
  81% of universities are considering digital transformation, 71% are open to shared procurement, 65% are considering federations or alliances, and 2 in 5 are open to or actively considering mergers or acquisitions with other institutions.
• Staffing is a common area of cost saving
  79% of universities have pursued voluntary redundancies over the last three years, and 79% have implemented hiring freezes or pauses to recruitment.
• More institutions report cuts to student support and research
  27% have cut student bursaries and scholarships (compared with 15% in 2025), 13% have cut hardship funding (compared with 9% in 2025), and 31% have made cuts to academic research activity (compared with 14% in 2024).
• Changes to course and campus provision are widespread
  46% have reduced their course offering through consolidation and 44% through closures, 54% have cut back on repairs and maintenance, 13% have closed campuses, and 29% would consider doing so in future.
• Financial pressures remain acute
  92% of English and Welsh institutions say the tuition fee uplift will not fully offset the financial impact of planned policy changes, with the most cited pressures being employer NI contributions (79%), changes to international student recruitment (67%) and pay and non-pay cost inflation (65%).
• The sector is calling for targeted support
  Greater VAT flexibility and a government-backed Transformation Fund to cover the upfront costs of radical collaboration.

Notes to editors

A survey of UUK member Finance Directors was conducted between March - April 2026, asking respondents where they have made cutbacks due to financial necessity and where they would consider future cuts if required. Responses were received from institutions across the UK, with a wide variety of institution types represented.  

48 members responded to the survey in total. This corresponds to 34% of UUK’s membership.   This was the third consecutive year running the survey. The survey repeated several questions from the 2025 and 2024 editions to allow comparability.