Higher education regulator says sector needs to take ‘take bold action’ and consider mergers or cost sharing

England’s universities face financial turmoil with nearly three in four expected to be in the red next year, according to gloomy forecasts from the higher education regulator.

The Office for Students (OfS) said the sector would have to take “bold and transformative action” to compensate for a £3.4bn drop in income forecast for 2025-26, with universities needing to consider mergers or cost sharing.