- 18 December 2025
UK universities make considerable contributions to our national life. However, they face increasing governance challenges especially concerning the tension between their academic and business activities.
The governance of British universities is going through a period of considerable flux. Universities are under unprecedented scrutiny due to concerns about both the autonomy and financial viability of many HEIs (Higher Education Institutions). Increased regulatory scrutiny, following the Higher Education and Research Act of 2017, has been accompanied by increased media criticism over a number of areas including: perceived over-reliance on international student fees, deteriorating teaching quality, excessive managerial salaries, growing doubts about the employability of graduates, and issues with free speech and academic freedom on campus.
The government has responded to these public concerns by putting pressure on universities to reform their governance. In 2024 the new UK government tasked the Office for Students (OfS) with directing more of its energy towards financial sustainability. Bridget Phillipson MP, Secretary of State for Education has been uncompromising in her expectation that the sector must quickly improve its financial position. Phillipson was quick to realise that the problems with universities were fundamentally a matter of governance:
“Last year, we asked the Office for Students (OfS) to refocus their efforts on monitoring financial sustainability…The government is clear that there needs to be a focus on and improvement in providers’ governance. Planning and strategy development within higher education providers, including financial planning, should be supported by the highest standards of governance to ensure realistic planning, robust challenge and the development of sustainable business models.”
The Rt Hon Bridget Phillipson MP, Secretary of State for Education. Letter to Helen Hayes MP, Chair of the Education Select Committee, 14 May 2025.
Governance in HEIs is particularly important because British universities receive billions of pounds of public subsidy every year for their two main activities, teaching and research. Despite the existence of evaluation exercises, they remain remarkably free from Government control, perhaps more so than any other publicly financed institutions.
Recent cases of governance failure at the University of Dundee and the University of Buckingham highlight the difficulty of monitoring and regulating institutions as complex as universities. Whilst no mainstream institution has, as yet, declared insolvency, there are many institutions facing financial difficulties.
The tripartite model under pressure
Enforcing good governance practice across a diverse range of organisations is a challenge. Much of the discussion about higher education governance assumes that practice across the sector is somewhat homogenous. However, the UK higher education sector is now a patchwork of institutional types, from ancient universities, through post-92s to private universities. Within this diversity, governance structures and nomenclature vary widely. Universities are complex organisations with multiple objectives and functions and the “one size fits all” approach is particularly contentious in a sector which takes autonomy seriously.
Universities in the United Kingdom are independent self-governing bodies with a large degree of constitutional autonomy, guaranteed by a Royal Charter granted by the monarch on the advice of the Privy Council. Prior to 2017, the Privy Council had the sole power to grant degree-awarding powers and the title of "university". Following the Higher Education and Research Act 2017, the power to authorise degree-awarding powers and university title for HEIs in England has largely transferred to the Office for Students (OfS).
At the heart of the higher education governance model sits a “tripartite” model composed of three core entities:
· A council, a university’s governing body, which has ultimate responsibility for the institution
· A senate (or academic board) which oversees academic standards
· The executive, which is the management team led by the Vice Chancellor
Each of these three entities has a distinct and crucial role. But it is the relationship between them – not simply their internal functioning – which determines whether a university is governed effectively and with legitimacy. HEI governance structures often struggle due to misalignment or confusion between the three interlocking entities.
Overtime, councils have become more assertive in oversight, senates have sometimes seen their influence diluted, and vice-chancellors have come to operate as chief executives.
Each governance structure brings unique challenges and unique strengths. HEIs which follow the tripartite system are fundamentally different from listed companies and can be less at risk of concentration of power. The longstanding principles of academic independence and academic tenure also preserve diversity of thought within universities. The main governance challenges for universities are role clarity, co-ordination, bureaucracy, low efficiency and inconsistent strategic decision-making.
The CUC code: a catalyst for change?
Governance is a system which establishes relationships between numerous decision-makers. The formal rules of governance are typically manifested in a constitutional document which is guided by external codes. There are now two specific external codes of governance applying to the UK higher education sector. On 1st August 2013 the Committee of Scottish Chairs published the first “Scottish Code of Good Higher Education Governance” which was last revised in 2023.
For England and Wales, the Committee of University Chairs (CUC) responded with the Higher Education Code of Governance (the 'CUC Code'), which was first produced in 2014, and last revised in 2020.
On 10th October, CUC published a Call for Evidence to inform a review of the current CUC Code, which. The review starts from a “blank page” to encourage open thinking about ways in which to solve “current challenges” and to act as a “catalyst for deep self-reflection on governance practices”. The call for evidence has now closed and we await the publication of the revised code. It is fair to say that expectations are very high.
Governance is not just about structures, it’s also about behaviours, relationships, and culture. Governance structures and codes aim to produce organisations which are not only effective but trusted, where delivery is matched by legitimacy, and performance by purpose.
As universities confront financial uncertainties, digital transformation, diversity and inclusion, and the evolving needs of students, the importance of governance will increase. Governance will continue to play a central role in determining how institutions adapt to change, fulfil obligations and turn challenges into opportunities
Governance is increasingly recognised as a central factor in the performance and accountability of ALL organisations. The rapid evolution and expansion of governance will present many opportunities for governance professionals in the years ahead.
Governance training in education
The Institute offers training in Academy governance. This unique Level 4 qualification is the only certification to look at the specific governance needs for academy trusts and schools.
Find out more: Certificate in Academy Governance.