Universities would be one of the most vulnerable public bodies if Britain left the European Union (EU), according to Moody’s.
Having already warned of the economic effects of a Brexit, the ratings agency has now issued a warning for universities and Transport for London (TFL) were we to cut ties with the EU, resulting in a potential withdrawal in funding.
The agency pointed out that universities in the UK receive “significant” research funding from the EU, which has increased “appreciably in recent years”.
Between 2007 and 2013, the UK received 22 per cent of total European research funding available under a programme known as Framework Programme Seven, which was more than any other country in the EU.
Britain’s contribution towards European research was £5.4 billion but it received £8.8 billion back, according to figures from the Office of National Statistics,
Although they do expect that the government would want to make up some of those funds lost if Britain did leave the EU, it has strong suspicions that the funding gap could not be filled entirely.
Moody’s stated, “The UK is a net recipient of EU research funds. We would expect the UK government and other sources would make up some of the funding in the event of an exit, but the loss is unlikely to be compensated in full.
Oxford University’s Chancellor, Lord Patten, also warned Oxford University could drop in the world rankings if Britain were to leave the EU.
He commented, “If you ask serious scientists and academics whether we are better off inside the EU or outside, they would overwhelmingly answer ‘it’s a no brainer.’
“I am not saying that we suddenly will fall into a lower division if we left the EU, but it would be much more difficult both to get the funding we require and to be linked in to the best research of the EU. Without EU funding the research would have gone down in the last few years. What has actually kept us ahead is our research funding.”
Labour MEP Anneliese Dodds told Cherwell, “I agree that leaving the EU could have a considerable impact on universities in the UK. Oxford University and Oxford Brookes received over £60 million between them from the EU in 2014/15, and students at both universities benefit from Erasmus schemes and grants if they want to spend a year studying in another EU country.”
“Oxford University has also been allocated the largest ever loan to a university from the European Investment Bank of £200 million. Most, if not all, of this funding would be lost if we left the EU – and if we want to maintain our reputation for excellence in higher education, it’s not a risk we can afford to take.”
Lord Marks of Henley-on-Thames, the Liberal Democrat Justice Spokesperson and a leading campaigner for Remain, who came to speak in Oxford right at the beginning of the campaign, commented, “The EU has also enabled academic exchanges between Europe’s great universities and widespread co-operation in research projects in many different fields.
“These are among the reasons why leading academics in the UK are overwhelmingly in support of our remaining in the EU. It is also why the majority of Europe’s academics are profoundly concerned about the prospect of our leaving.”
Freddie Hopkinson, Vice Chair (Media) for Oxford Students for Europe (OSFE), told Cherwell, “Moody’s’ claim highlights quite how important continued EU membership is for our university, as well as for research establishments across the country. OSFE will continue to campaign to make sure as many members of the University vote to stay in, protecting this vital stream of research funding. Alongside Oxford University, OSFE has already acknowledged the huge benefits membership of the EU provides for Britain’s universities- Moody’s’ claim dramatically reinforces this point.”
A few weeks ago, Oxford University released a statement expressing its support for the Stay campaign, saying, “While recognising that individual members of the University will hold different views on the Referendum, and while encouraging open debate on the issue, the University’s Council wishes to affirm the value that the UK’s membership of the EU provides to the University.”
Oxford University has been contacted for further comment.
