THE FINANCIAL crisis gripping Welsh universities has worsened, with Bangor University announcing plans to cut 200 jobs in an effort to save £15 million. The move follows similar measures at Cardiff University, which is set to axe 400 positions, and the University of South Wales, which will shed 90 jobs and shut down several courses.

Bangor’s Vice Chancellor Professor Edmund Burke outlined the university’s dire financial position in an email to staff, citing a drop in international students, rising costs, and changes to national insurance as key factors. While the university hopes to avoid compulsory redundancies by extending its voluntary redundancy scheme, it has warned that enforced job losses may be necessary.

The crisis has sparked a political row, with Labour’s funding policies and tax hikes under fire. Welsh Conservative Shadow Cabinet Secretary for Education, Natasha Asghar MS, placed the blame squarely on the Labour Government’s handling of higher education:

“Labour’s National Insurance hike continues to heap pressure on industries across Wales and following the similar news from Cardiff University last month, it was inevitable these pressures would ripple across the higher education sector.”

“With universities already grappling with a £100m deficit and Labour’s tuition fee increases making higher education less appealing for many young people, Labour’s funding cuts and tax hikes are now jeopardising the future of our institutions, their staff, and students.”

“After 26 years of Labour failure in education, it’s clear that only the Welsh Conservatives have the solutions to fix these deep-rooted problems and secure a brighter future for Wales.”

The UK Government has also been criticised for immigration policies that discouraged international student enrolment, worsening financial struggles across the sector. Prof Burke noted that some top-tier universities have responded to the drop in international students by lowering entry grades, making it even harder for institutions like Bangor to attract students.

On Tuesday, Welsh Higher Education Minister Vikki Howells announced a further £19 million in funding for the sector, despite stating earlier this month that no extra money was available. However, universities have warned that this support falls short of what is needed to prevent further cuts.

Meanwhile, the University of South Wales has confirmed its own job losses and course closures. The institution will withdraw from some research topics and concentrate on crime, security and justice, health and wellbeing, the sustainable environment, and creative innovation. The university said it is making efforts to limit compulsory redundancies and provide support to affected staff and students.

With the financial future of Wales’ universities hanging in the balance, opposition leaders and university officials alike are calling for a long-term solution to prevent further disruption to students, staff, and the wider economy.

CALLS FOR DEVOLUTION

NEW data has revealed that councils in Ceredigion, Pembrokeshire, and Carmarthenshire pay a combined £105,589.29 each year to the Crown Estate for public access to land.

The figure was obtained through Freedom of Information requests by the office of Cefin Campbell, Plaid Cymru Member of the Senedd for Mid and West Wales (pictured). Mr. Campbell argues the findings strengthen his party’s call for the devolution of the Crown Estate’s responsibilities to Wales.

Currently, profits from the Crown Estate are received and managed by the UK Treasury on behalf of the royal family.

PLAID CYMRU PRESSURE

In the Senedd today (Wednesday, February 19), Mr. Campbell questioned Jayne Bryant, the Welsh Government’s Cabinet Secretary for Local Government and Housing. He raised concerns about the financial strain on local councils and the impact of rising costs.

“Local authorities, facing the cost-of-living crisis and increased national insurance contributions, are having to consider cuts to public services to balance their budgets,” he said. “Ceredigion Council, for instance, is facing a £5 million deficit and considering a council tax rise of up to 14%.”

He added: “Do you agree with me and my Plaid Cymru colleagues that it is impossible to justify councils in south-west Wales sending over £100,000 to the UK Treasury and royal family each year? Shouldn’t the process of transferring responsibility for the Crown Estate to Wales begin as soon as possible?”

A POLITICAL row has erupted after the Welsh Conservatives voted against a Welsh Government plan to provide £7 million in financial support to businesses struggling with their bills. The decision, made in the Senedd on Tuesday (Feb 18), has drawn sharp criticism from Welsh Labour, who accused the Tories of failing to help businesses recover from economic pressures exacerbated by UK Government policies.

Labour slams Tory opposition

A Welsh Labour spokesperson said: “You couldn’t make it up. The party that gave us the disastrous Liz Truss budget that sent bills soaring has now voted against providing a package of support for Welsh businesses worth £7 million.”

The funding was part of a broader £335 million package within the Welsh Government’s 2025-26 budget, aimed at easing financial pressures on businesses. The proposed support included targeted relief for the retail, hospitality, and leisure sectors, which have been struggling amid high operating costs and economic uncertainty.

Tories defend their stance

The Welsh Conservatives have defended their decision, arguing that their own economic growth plan, which included reinstating business rates relief to 75% for key sectors, would have been a more effective solution. Their proposal was rejected by Labour members, leading to their opposition to the alternative package.

Samuel Kurtz MS, the Welsh Conservatives’ Shadow Secretary for Economy, Energy, and Welsh Language, said: “Labour has consistently failed Welsh businesses. Instead of implementing real, long-term solutions to drive economic growth, they are offering piecemeal support that does not address the deeper challenges facing our economy.”

Economic challenges in Wales

The debate over business support comes against the backdrop of concerning economic statistics in Wales. The nation continues to grapple with higher unemployment rates and lower employment figures compared to other parts of the UK. Businesses, particularly in the hospitality and retail sectors, have been vocal about the need for more substantial government intervention to cope with rising costs.

The Welsh Labour Government insists that its package is necessary to provide immediate relief, while the Welsh Conservatives argue that broader tax and economic reforms are needed to create a more sustainable business environment.

Divided reactions

Business leaders and organisations have expressed mixed reactions to the political fallout. While some have welcomed the Welsh Government’s funding plan, others believe it does not go far enough to address long-term financial pressures.

A spokesperson for Business Wales said: “Any support for businesses is welcome, but we urge all parties to work together on long-term solutions that provide certainty and stability for Welsh enterprises.”

Political fallout

The vote has intensified the ongoing political battle between Labour and the Conservatives in Wales, with both parties accusing each other of failing to support the economy effectively. With the Welsh economy facing ongoing challenges, businesses will be watching closely to see if further financial relief or policy changes emerge in the coming months.

The Herald will continue to follow developments on this issue.