{"id":314213,"date":"2025-12-13T17:17:12","date_gmt":"2025-12-13T17:17:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/314213\/"},"modified":"2025-12-13T17:17:12","modified_gmt":"2025-12-13T17:17:12","slug":"uk-universities-report-ongoing-deficits-after-difficult-year","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/314213\/","title":{"rendered":"UK universities report ongoing deficits after \u2018difficult year\u2019"},"content":{"rendered":"

Institutions including the University of Cambridge<\/a> and\u00a0Queen\u2019s University Belfast<\/a> joined the list of those reporting deficits in their newly-published financial accounts as universities of all sizes continue to face financial challenges.<\/p>\n

Queen\u2019s University Belfast<\/a> reported an operating deficit of \u00a322.8 million in its 2024-25 accounts, which comes on the back of a \u00a312.7 million shortfall last year.<\/a><\/p>\n

The Russell Group member said it faces significant declines in real-terms government funding, volatility in the international student market, rising costs and a number of other financial challenges specific to Northern Ireland\u2019s institutions.<\/p>\n

It had a negative net cash flow from operating activities of \u00a333.5 million and incurred costs of \u00a325.4 million from a voluntary severance scheme.<\/p>\n

Queen\u2019s suffered an 8 per cent fall in international student fee income, an 8 per cent rise in staff costs and a 4 per cent increase in operating expenses.<\/p>\n

While fellow Russell Group member Cambridge recorded an adjusted deficit, which it uses as the most consistent measure of underlying performance, of \u00a38 million, this\u00a0comes in the context of a turnover of over \u00a32.6 billion and net assets in excess of \u00a38 billion.\u00a0The academic university alone had an adjusted surplus of \u00a387 million.<\/p>\n

It was also an improvement on its \u00a316 million adjusted deficit in 2023-24<\/a>.\u00a0<\/p>\n

Its income from tuition fees and education contracts grew by 5 per cent due to international students and income from research grants and contracts grew 4 per cent. But this was largely wiped out by a 28 per cent drop in donations and endowments from an unusually high level last year.<\/p>\n

A spokesperson said: \u201cThe university continues to be in strong financial shape\u00a0\u2013 despite the challenges facing the UK higher education sector as a whole\u00a0\u2013 and is fortunate to have multiple income streams, most significantly its endowment, support from donors and other benefactors, and the surplus income from Cambridge University Press and Assessment.\u201d<\/p>\n

Cambridge also recorded a net cash inflow from operating activities of \u00a324.8 million, which was an improvement on the \u00a354.8 million outflow last year.<\/p>\n

The University of Leicester<\/a> also\u00a0recorded a deficit for the second year in a row.<\/a><\/p>\n

Its accounts show a group income and expenditure deficit of \u00a33.4 million, though this is up from an \u00a38.3 million deficit last year which was largely a result of student number and research income growth.<\/p>\n

Staff costs at the university grew by \u00a311.3 million\u00a0because of increased research activity, pay bargaining, a rise in national insurance and the minimum wage and hiring. This expenditure now makes up 58 per cent of total income, which is above its long-term financial sustainability target of 53 per cent.<\/p>\n

A spokesperson said: \u201cOur deficit reflects the wider challenges facing Leicester and the UK higher education sector, including frozen tuition fees, inflation, rising pay costs, and pressures on international student recruitment.<\/p>\n

\u201cAlthough we have reduced our deficit, effectively breaking even over the past four years is not sustainable.\u201d<\/p>\n

London Metropolitan University<\/a>\u00a0posted an operating deficit of \u00a312 million \u2013 compared\u00a0with a \u00a31.5 million surplus in 2023-24 \u2013 with total income falling by \u00a320 million.<\/p>\n

Its accounts said the \u201clast year has been one of the most difficult for higher education in recent memory\u201d<\/a>\u00a0with costs rising faster than income, fees remaining frozen, and international recruitment becoming more volatile.<\/p>\n

A spokesperson added: \u201cLondon Met remains stable. We are debt-free, hold healthy cash reserves, and continue to invest in our estate and digital infrastructure. The speed with which we have been able to post our results reflects the confidence our governing bodies and auditors have in our financial stability and status as a going concern.<\/p>\n

\u201cOur financial planning is focused on sustainability, with proactive, measured decisions to manage resources carefully. We have a clear plan to return to surplus while maintaining the high-quality experience our students and staff deserve.\u201d<\/p>\n

The University of Derby<\/a> also blamed a challenging environment for its \u00a322.6 million operating deficit, with an 8 per cent decline in international fee income and inflationary increases in staff costs only partially mitigated by enhanced cost controls.<\/p>\n

A spokesperson said Derby has been implementing a long-term strategy to secure future growth, including a reduction of the university\u2019s cost base and the \u201cdifficult decision to reduce staff numbers\u201d.<\/p>\n

\u201cThe university is undergoing a period of purposeful transformation. We have reoriented our institution to enable strategic investment that strengthens our long-term position. Our ambition is to be a university that meets the needs of students, industry and society in the years ahead.\u201d<\/p>\n

Elsewhere, Liverpool John Moores University<\/a> reported an operating deficit of \u00a35.8 million and Nottingham Trent University<\/a> a deficit before tax of \u00a32 million.<\/p>\n

patrick.jack@timeshighereducation.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Institutions including the University of Cambridge and\u00a0Queen\u2019s University Belfast joined the list of those reporting deficits in their…\n","protected":false},"author":2,"featured_media":314214,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-314213","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/314213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=314213"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/314213\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/314214"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=314213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=314213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=314213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}