The arrival of Andy Burnham in Downing Street this month has prompted a flurry of commentary about what his premiership might mean for UK universities. While his cabinet reshuffle marks a clear break with the Starmer era, the higher education sector should be cautious about expecting a dramatic shift in fortunes.
If anything, the early signs suggest that higher education may continue to occupy an uncomfortable position in government thinking: recognised as economically important, but far from a policy priority. Burnham’s recent pledge to end the dominance of universities in the education system is a case in point.
So too is his government’s response to the Education Select Committee’s report into university finances, published on his third day in office. In it, the government said it is “not currently persuaded” of the need for an insolvency regime and believes in “orderly market exit” should an institution go under.
So, what else do Burnham and his key ministers tell us about the road ahead?
Andy Burnham (Prime Minister)
Andy Burnham is not inherently hostile to universities. As mayor of Greater Manchester, he worked closely with higher education institutions in the region and understands the role they play as anchor institutions and drivers of regional growth.
If universities are to pass the Burnham test, they will need to demonstrate that they serve individuals, places and the nation in equal measure
But he has also listened to those whose lives have not been transformed by higher education and has heard the complaints of communities struggling with housing pressures, public service demand and uneven economic opportunity. If universities are to pass the Burnham test, they will need to demonstrate that they serve individuals, places and the nation in equal measure.
Lucy Powell (education secretary)
Lucy Powell replaces Bridget Philipson as education secretary after two years in post. While universities may lament the loss of continuity and experience, Philipson’s instincts were always strongest on schools, and higher education often appeared secondary to wider concerns around attainment and opportunity. By contrast, Powell arrives without this policy baggage and, crucially, with Burnham’s confidence and that of the Labour Party, having recently been elected deputy leader.
That creates an opportunity. A new secretary of state without firmly entrenched positions on universities could offer the sector a chance to reopen conversations that had become increasingly difficult to have under her predecessor.
Jacqui Smith (skills minister)
Whether universities can take advantage of that opening is another matter. The reappointment of skills minister Jacqui Smith suggests limited prospects for meaningful change. While familiar with the sector’s concerns, she has shown little appetite for revisiting a tertiary model that places technical education, apprenticeships and workforce skills at the centre of policy thinking.
For as long as higher education remains only one part of her much wider skills brief – split between the Department for Education (DfE) and the Department for Work and Pensions (DWP) – universities are likely to be expected to fit within a framework that prioritises NEETs (those Not in Employment, Education or Training) over the high-level skills an advanced economy requires.
Shabana Mahmood (home secretary)
For those in international education, the most important signal may not be coming from the DfE at all. Shabana Mahmood’s reappointment as Home Secretary points to continuity rather than a reset on immigration. The political pressures that pushed Labour towards a tougher approach to migration under Starmer have not disappeared simply because there is a new Prime Minister.
Universities hoping for a more liberal stance on international students should therefore be prepared for disappointment. The Graduate Route is likely to remain under scrutiny and there may be little appetite for a significant relaxation of the student visa regime.
The Graduate Route is likely to remain under scrutiny and there may be little appetite for a significant relaxation of the student visa regime
The same logic applies to the proposed levy on international student fee income. The more universities argue that international students make a substantial contribution to institutional finances and the wider economy, the more a government determined to present itself as a “cost of living” cabinet is likely to see this as a welcome revenue stream to help fund its wider domestic policy agenda.
Jonathan Reynolds (business secretary)
The minister universities should perhaps be paying closest attention to is business secretary Jonathan Reynolds, who returns to lead the newly expanded department after almost two years away. The decision to fold the Department for Science, Innovation and Technology (DSIT) into a larger, growth-focused business department was initially met with concern across the sector, with some viewing it as a downgrading of science. In practice, however, the opposite may prove true.
Inspired by Burnham’s brand of “Manchesterism”, the government’s approach is increasingly centred on aligning research, innovation and industrial strategy rather than treating them as separate policy silos. As a result, universities now sit much closer to the heart of the government’s growth agenda. This places Reynolds in a potentially influential position as an internal advocate for a more pragmatic approach to talent and immigration policy. While the Home Office is likely to maintain a cautious stance on migration, Reynolds will be acutely aware of the workforce needs of high-growth sectors such as advanced manufacturing, artificial intelligence, life sciences and financial services.
Bringing universities, research and industrial strategy together within a single department could strengthen the case inside government for immigration policies that support, rather than hinder, economic growth. In doing so, it may increase pressure to ensure that Britain remains attractive to the international students, researchers, entrepreneurs and highly skilled workers on whom future regional prosperity depends.
Chris McDonald (science minister)
Finally, it is expected that Chris McDonald will be confirmed as science minister within Reynolds’ team, adding another important piece to the Burnham puzzle. Unlike many previous occupants of the role, McDonald comes from an industrial research background, having led the Materials Processing Institute and worked closely with universities, businesses and innovation programmes throughout his career.
His appointment therefore reinforces the government’s intention to align science more closely with industrial strategy and economic growth, so he is likely to be receptive to institutions that can demonstrate how their research contributes to national priorities.
The new reality
Ultimately, Burnham’s government appears less interested in defending universities than in deploying them. Institutions will be judged not by their status, tradition or claims of excellence, but by the extent to which they help address the country’s economic and social challenges.
That presents both a risk and an opportunity. Universities hoping for a return to a more sector-friendly political climate are likely to be disappointed. But those able to demonstrate their value to local communities, national renewal and economic growth may find allies in unexpected places.
The faces around the cabinet table may have changed, but the demand for relevance remains. The universities that thrive in Burnham’s Britain will not be those that make the strongest case for higher education. They will be those that make the strongest case for what higher education can deliver.