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Can new universities save left-behind towns and cities?

Fresh models of university outposts emerging in regions without access to higher education as financial crisis sees shuttering of traditional campuses

Published on
February 4, 2026
Last updated
February 4, 2026
A woman and child walk through a market area with closed stalls in Milton Keynes, England.
Source: Dan Kitwood/Getty Images

Universities are turning to new models to serve 鈥渃old spot鈥 towns and cities, as campus closures and limited funding risk more places being left without any provision.

Several parts of the UK without a university have long coveted the benefits higher education can bring to an area but financial challenges are restricting institutions鈥 ability to expand.

In many cases universities are instead retrenching such as in Milton Keynes where long-held hopes of expanding face-to-face higher education options for local students were dealt a blow recently when The Open Universityscrapped plans to open a physical campus in the city.听

Officials are still committed to the fight. Opening an alternative institution will 鈥渞etain many talented young people within the city who currently leave to study elsewhere and don鈥檛 come back鈥, said Sam Crooks, a local councillor.听

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Additionally, 鈥渋f located in the city centre, it will enhance the city鈥檚 night life and provide the scope for new hospitality and other retail opportunities,鈥 he argued.听

As well as regions that have never had their own university, some areas are being abandoned by existing institutions.

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The University of Brighton, for example, closed its Eastbourne campus in 2024 while the University of Wales Trinity Saint David (UWTSD) moved students from its Lampeter site to Carmarthen last year.

More recently, the University of Essex has announced it will听close its Southend campus in 2026, blaming falling international student numbers.听

In response, Daniel Cowan, leader of Southend-on-Sea City Council, said the body had established a task force to 鈥渆xplore every viable option for maintaining and expanding university-level provision in the city鈥.

鈥淎cross the UK, cities with established university presences consistently see higher levels of inward investment, wage growth, innovation, business creation, and opportunities for young people and adults alike,鈥 Cowan told听探花视频. 鈥淚t is vital that Southend does not lose out due to decisions made elsewhere.鈥

Crooks said one of the main barriers to establishing a university in Milton Keynes was the lack of money available. At a time of听significant financial strain听for UK universities, whether or not a university goes ahead with a new campus often appears to come down to the availability of external funding.听

In Blackpool, for example, plans are under way for a new campus known as University Centre Blackpool, developed in partnership with Lancaster University and a local college. Much of the funding has come from the UK government through听its听鈥渢owns fund鈥 and 鈥渓evelling-up fund鈥.

A new campus is also being developed in Blackburn in partnership with the University of Lancashire with 拢20 million of levelling-up funding.

These outposts are envisioned as a way to widen access to higher education. In 2025, three years after Anglia Ruskin University opened a new campus in Peterborough, for example,听听at the outpost came from the greater Peterborough area. Forty per cent of those said they would not have pursued higher education if it had required moving away.

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As Crooks and Cowan suggested, locals also believe their areas will benefit economically from hosting a university.听

According to Rob Johnson, senior analyst at Centre for Cities, the reality is more complicated. Although universities can be 鈥渃atalysts in local economies鈥 and attract private investment 鈥 particularly for things like student accommodation 鈥 they are far from a golden bullet to solve a region鈥檚 economic problems.听

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Universities are also attracted by what is already in place. In 2022, the University of Chester opened a campus in Warrington, for example, which has a strong nuclear sector. If a town or city doesn鈥檛 have existing industries that the university wants to tap into, it might not be that attractive to institutions, Johnson said.听

The economic impact of university branches is also smaller than that of full universities, he continued, and these are more vulnerable to closure.听

In the face of this, providers and councils are increasingly exploring new models, often including further education colleges. While working with external partners via franchising was once seen as the key to addressing cold spots, the latest ventures appear to have more direct university control after the the听scrutiny subcontracting has faced.

鈥淚f there is going to be movement, it鈥檒l be those things which are, by their nature, different from just the university model, and probably slightly smaller scale, but I think more realistic and [that have] more scope to grow,鈥澨齁ohnson said.

Cranfield University already operates MK:U, a small campus in Milton Keynes offering degree apprenticeships. Neil Withey, director of MK:U, said having a 鈥減art-time campus鈥 with sponsorship from local employers is a 鈥渃ost-effective way鈥 of widening access.听

鈥淢K:U remains the fastest-growing part of [Cranfield] at this point,鈥 he said. 鈥淚 do see it as a future opportunity.鈥

Meanwhile UWTSD is now planning to set up a vocational teaching centre to replace lost provision in Lampeter, its vice-chancellor Elwen Evans told THE last year.

John Goddard, emeritus professor of regional development studies at Newcastle University, said Labour鈥檚 devolution agenda can bring opportunities for expanding higher education provision in cold spots, but a lack of cohesion across government departments could be a barrier.听

鈥淵ou鈥檝e got these silos between the different government departments dealing with higher education, research, business [and] skills,鈥 he said. 鈥淭hey鈥檙e all doing their own thing and none of them are all concerned with geography, what goes on where.鈥

While the Ministry of Housing, Communities and Local Government is responsible for devolution, Goddard said nobody in the department was 鈥渋nterested in the role of universities鈥.听

At the same time, universities are, he said, taking a 鈥渧ery narrowly defined economic point of view鈥 in light of the economic crisis, with the current system meaning there are no disincentives for closing a campus.听

鈥淵ou could argue that there [should be] some sticks and carrots in this process and a stick might be: 鈥榃ell, if you close this campus you鈥檙e going to suffer.鈥欌

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helen.packer@timeshighereducation.com

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Reader's comments (3)

For real? I cannot imagine anyone opening a university now. It鈥檚 too expensive to go, the course offer is shrinking and universities are shedding jobs like mad. I鈥檓 assuming the fallout when universities start CLOSING will kick off soon.
There is a large worldwide literature that the author ignore. The relationships are highly variable. But overall, the costs to any locality to attract and then support a university are considerable.
This is nothing new. Quite a few 'branch campuses' in England were established during the Blair governments' dalliance with English Regionalism governance 1997-2010 while EU structural funds were available (before the calamity of Brexit for FE/HE), eg Oldham, Carlisle. But they lacked sustainability in a volatile market-driven system where FE was neglected, and barely compensated for the mass closure of campuses in dozens of towns across England over the decades before, as universities, in particular, sold off campuses bequeathed to them by the merger of teacher training college campuses from the 1960s. Practically every town in England had a TT college in the 400 that existed in the 1960s, closed following the James Report in the 1970s. The closure of what was the remains of one of the largest former TT major HE colleges in a town that had the misfortune to become the Crewe campus of Manchester Metropolitan University was a massive example, as exclusively city centre campuses became the target of most of the larger universities pursuing young FT UG market demand. Scotland, however, has managed to keep many of its town-based higher education campuses, through a combination of support for three distributed/multi campus universities (out of 18) - UWS, SRUC and the highly innovative FE/HE partnership model of UHI - coupled with support for HE opportunities through development of a large scale community college model now taking in 1 in 3 HE students (compared to 1 in 20 in England). But the reality is the costs of spreading HE opportunities in a country with one sixth of the population density of England are much greater and Barnett 'fiscal drag' reduces ScotGov funds as England introduced austerity in 2010s. It is going to need serious campaigning to maintain town-based campuses and local access after May's elections.

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