Fears have been raised over the future of universities in Wales, with the UK and Welsh parliament hearing that without a more sustainable funding model, there “is a real danger a university in Wales could collapse next year”.

Professor Jon Timmis, Vice-Chancellor at Aberystwyth University told the Welsh Affairs Committee in Westminster that the current landscape was challenging, and called for policy stability from politicians.

Prof Timmis spoke about the importance of civic responsibility, which he said was particulary acute in Aberystwyth, adding: "We do a lot of civic work and the financial implications for that are very challenging."

Steve Witherden MP asked whether funding was allocated fairly.

Prof Timmis said: "I have been lucky enough to go around my departments talking to my academic staff, PHD students about the research that they do.

"I wish you could do what I've done and just talk to people and just see the incredible work my colleagues are doing at this institution through the research despite having a lower amount of money of which to do it with.

"Everything from helping design cameras that go on the Mars rover, going up Mount Everest and looking at historical implications for cultural change and applying that in South America.

"From an Aberystwyth perpective I am confident that we are now on top of the problems that we have had and the challenges we are facing.

"I am optimistic but it is challenging for the sector and we do need a sustainable financial model for the sector."

Unions told a Senedd’s education committee inquiry that universities in Wales remain on the brink, and are in danger of collapse.

Dan Beard, who chairs Unison Cymru’s higher education forum said: “Without change, we will see universities collapsing or contracting significantly.”

Giving evidence to an inquiry on higher education, which was prompted by cuts at institutions across Wales, Unison called for urgent intervention from ministers.

“Nearly all universities are making cuts to some degree or another,” Mr Beard told the inquiry.

Unison described the Welsh Government’s February announcement of £18.5m for universities as “nowhere near enough”, with Cardiff alone facing a £30m shortfall.

“Without a strategy and funding, Welsh universities will continue to contract, shedding staff and closing unprofitable courses,” the union said in its written evidence.

Unison expressed frustration with the Welsh Government “waiting to see” how UK ministers respond, cautioning: “The gravity of the situation means we can’t afford to wait.”

The trade union said higher education institutions face a dire financial situation, with hundreds of redundancies proposed which could be devastating for Wales.

“There is a real danger a university in Wales could collapse next year,” Unison warned.

In its written evidence, UCU Cymru said higher education has suffered systemic failure and neglect which risks bringing institutions to their knees.

The trade union told the committee: “Nowhere else in the Welsh public or not-for-profit sector, do we find a combination of job losses through voluntary severance, pay freezes and the very real risk of compulsory redundancy.”