How a University will fare after Brexit
AUSTRALIA’S biggest universities are bracing for the impact of Brexit, as the government sets out its Brexit strategy.
Key points:The government is planning to cut spending in the coming year to prepare for the departure of EU workers and studentsKey points – Universities in the UK are braced for a massive impactBrexit could also have a negative impact on their business, research and investmentThe government wants to attract more EU workers, students and research to the UK, but many fear that this could have a detrimental impact on the UK’s universities and research institutions.
Key facts:Many of the country’s biggest universities, including Oxford and Cambridge, are planning to move their headquarters to the continent.
The universities are worried about their ability to attract the EU’s top talent and will look to other countries for help.
The government has already said it will reduce university spending, and has promised to spend £1.3 billion a year on research and development.
The University of Sydney has already reduced its annual spending by a third and is planning further reductions.
But a number of universities have said they are still hoping to remain in Australia.
The head of the University of Melbourne, Professor Chris Cawley, said it was too early to know if the UK would have any impact on academic funding.
“We’ve seen some really significant changes in the last five years,” he said.
“It’s not been a smooth transition from being a single market, where there are tariffs on things that we import, to having a globalised economy.”
Photo: Paul RovereUniversity of Adelaide has already scaled back spending in a bid to keep the university competitive.
But it is also considering other options.
Professor Mike Hager, the president of the Australian Research Council, said the government was planning to reduce university funding to reflect the UK withdrawal from the EU.
He said he expected that most of the cuts would be made in the next three years.
“The universities will have to do what they can to keep costs down,” he told the ABC.
“What I don’t think is an issue is the government’s own fiscal planning, which will be about the next 10 to 15 years, to what extent they are going to continue to support research and academic institutions.”
Mr Hager said the US had a much more flexible tax system than the UK.
“If you’re a business in the US and you’re investing in research and you want to attract investment, you may have a better deal than in the EU,” he explained.
“But if you’re just doing business in a country that is a trade barrier to the US, you’re going to have a hard time getting investment.”
The government also has a long-term vision for the UK leaving the EU, with a plan to “breathe new life into the UK economy”.
The Prime Minister, Boris Johnson, said his government had a long and complex plan to return Britain to a “strong, stable, competitive and globally competitive economy”.
“We’re committed to delivering on this commitment,” he added.
“As we have said for years, we will bring back economic growth and jobs and jobs for Britain and the Commonwealth.”
Topics:government-and-politics,government-institutions,government,foreign-affairs,european-unionFirst posted May 24, 2019 08:00:28Contact Nicola Young