A dozen UK institutions have joined the growing list of those recording deficits in their annual financial accounts, with many blaming the problem on a decline in international student numbers and subsequent increased competition for domestic students.<\/p>\n
With several universities already\u00a0reporting sizeable financial gaps<\/a>\u00a0for\u00a02024-25, newly released accounts highlight the scale of the financial challenges facing the sector.<\/p>\n De Montfort University<\/a> (DMU) moved from a \u00a312.6 million surplus in 2023-24 to a \u00a322.6 million deficit last year. The university said increased costs and a\u00a0reduction in the real-terms value of tuition fees<\/a>\u00a0had created a tricky economic climate.<\/p>\n \u201cLike most English universities, we are facing unprecedented financial challenges,\u201d DMU said in its 2024-25 accounts.<\/p>\n \u201cA major fall in international students has disrupted both home and overseas recruitment patterns across the sector, and some higher tariff institutions have over recruited home students to make up their shortfalls.\u201d<\/p>\n The institution said it has taken steps to address this, such as diversifying its income through expanding transnational education operations abroad, and cost reduction measures, including spending \u00a34 million on a voluntary severance scheme.<\/p>\n The University of Sheffield<\/a> became the\u00a0latest Russell Group member<\/a>\u00a0to record a deficit for the year. Its underlying operating deficit of \u00a311.5 million was down from a surplus of \u00a36.2 million the year before.<\/p>\n It suffered a \u00a356 million fall in income for the year, which was\u00a0mainly driven by a 22 per cent reduction in international tuition fee income. Sheffield said this reflected a \u201crebasing\u201d of the market as a result of\u00a0changes in government policy<\/a>, increased global competition and shifting student demands.<\/p>\n Its Earnings Before Interest, Taxes, Depreciation, and Amortisation fell to just 6 per cent of revenue, which was almost half its target of 11 per cent.<\/p>\n Sheffield also paid \u00a310.9 million in compensation for loss of office to more than 600 employees as part of its programme of tailored cost reductions last year.<\/p>\n The University of Ulster recorded an operating deficit before other gains and losses of \u00a320.2 million, which was a worse position than its deficit of \u00a35 million in 2023-24.<\/p>\n The institution said this was a result of rising costs and activity, which had not been matched by income growth, and a lack of inflationary growth in funding body teaching grants in Northern Ireland.<\/p>\n The University of Bedfordshire<\/a> said\u00a0its consolidated deficit of \u00a317.2 million<\/a>\u00a0had been \u201ccarefully managed\u201d with \u201clong-term sustainability firmly in view\u201d. This deficit, which was before adjustments for pension costs, was down from a surplus of \u00a316.6 million in 2023-24.<\/p>\n The institution\u2019s income fell from \u00a3150.4 million to \u00a3105.7 million,\u00a0mostly as a result of a significant reduction in international tuition fee income.<\/p>\n The University of Hull<\/a> improved from a deficit of \u00a317.2 million to one of \u00a312.9 million in 2024-25, despite what it said was a challenging year driven by volatility across student recruitment markets and the continuing real-terms decline of home undergraduate tuition fees.<\/p>\n Heriot-Watt University<\/a> also improved its financial position through what it described as \u201cdisciplined financial management\u201d but remains in an underlying operating deficit of \u00a37.9 million.<\/p>\n On top of international student recruitment issues, the institution warned of other challenges from global economic uncertainties, geopolitical conflicts and tensions, the ongoing threat of cyberattacks and climate change, and risks from the proliferation of generative AI.<\/p>\n Deficits\u00a0were\u00a0also recorded<\/a>\u00a0at Bournemouth University<\/a> (\u00a37.9 million); Birkbeck, University of London<\/a> (\u00a37 million); the University of the West of Scotland<\/a> (\u00a35.5 million); and Edge Hill University<\/a> (\u00a32.8 million). In addition, there were losses at art schools including Trinity Laban (\u00a32.9 million) and the Northern School of Contemporary Dance (\u00a350,000).<\/p>\n