These are due to a combination of factors largely outside of our control which means that our income is lower than forecast while overall costs continue to increase. We have been taking steps to reduce costs and increase income where possible, to ensure a sustainable financial future for the University.
Cost-saving measures
Our 2024/25 budget required us to save over £40m, 12% of our £330m turnover. As we approach the end of this financial year, we are on track to meet our targets due to several cost-saving measures put in place. These include reductions in budgets and voluntary severance schemes which have enabled us to reduce staff numbers without any compulsory redundancies. During 2024, around 500 people left the University through voluntary severance – over 10% of our workforce.
We also streamlined our University Executive Board structure, developing a more integrated and efficient leadership of academic and professional services, which has contributed to our cost savings.
We will continue to seek to avoid compulsory redundancies where possible and engage with trade union representatives throughout any change programmes as part of collective consultation.
Plans for the future
We have always been clear that there would be more to do to reduce costs and increase our income in future years. As we look ahead to 2025/26, and in the absence of any increased Government funding for higher education, we are having to make some difficult decisions, including reopening a voluntary severance scheme, reducing budgets and exploring other ways to reduce costs. During any change we will, as always, seek to avoid compulsory redundancies where possible and continue to engage closely with our staff and trade union representatives.
To increase and diversify income, we have recently launched an online offer to deliver masters-level courses remotely and flexibly. We also have plans for a London campus from 2026, where we will be the Higher Education partner in the new Brent Cross Town development, a regeneration project being financed by a private developer and Barnet Council. We will also soon open our flagship Howard Street development in Sheffield. It will deliver a modern, efficient, and environmentally sustainable addition to our city campus, providing outstanding facilities for students and staff.
Looking forward
Despite the challenges are affecting universities right across the country, Sheffield Hallam continues to be one of the largest and most popular universities, where our students bring significant economic, cultural and social benefits to the city.
Throughout this period of change we are working to ensure that we minimise any disruption for our students and maintain the high-quality and award-winning teaching, learning and research that we are well known for. Furthermore, we remain a committed anchor institution in the city and region, seeking to improve the lives of local people through various activities that deliver significant civic impact.
