These are due to a combination of factors largely outside of our control, such as increasing costs associated with inflation, rising energy and pension costs, and a UK undergraduate fee that has remained at the same level for more than a decade, meaning it is now worth around two thirds of its value when introduced in 2012. Recent changes to visa rules introduced by the UK government are also making it much harder for universities to recruit international students.
This means that our income is currently lower than forecast while overall costs have increased. While we remain solvent, we do have a small operating deficit, so are taking steps to reduce costs in the short term, both to ensure that we remain in a healthy overall financial position, and to underpin our plans for growth.
Plans for growth
This year we will open our flagship Howard Street development in Sheffield. It will deliver a modern, efficient, and environmentally sustainable campus, providing outstanding facilities for our students and staff. It will also deliver significant regeneration of a key gateway to the city centre and provide a new public green space for local people.
This development underlines our commitment to Sheffield and our important civic leadership role in the region – as an employer, learning provider, and anchor organisation. We are proud to make a positive contribution to the local economy in Sheffield through our teaching, research, collaborations with partners and regional employers, and our support for local communities.
We are also completing a thorough review of our course portfolio, in consultation with partners and employers, to ensure we can build on our outstanding record of providing qualifications that prepare graduates for highly skilled jobs. In the current financial situation – and in the absence of any likelihood of improved funding arrangements in higher education policy – we cannot simply rely on current student recruitment for future success. We must enhance our offer by looking for opportunities to diversify income in new ways.
One example is our plan for a London campus, which will see us deliver provision in the new Brent Cross Town development, as the higher education partner in a regeneration project being financed by a private developer and the local authority. Due to open in 2026, it will enable us to expand our reach in the capital, create opportunities for students from Sheffield to benefit from placements and work experience, and present a wider offer for international students.
Cost-saving measures
, such as a Voluntary Severance Scheme for academic staff which has now concluded. As part of a wider change programme, some academic and leadership roles have been removed from our organisational structure. However, several new roles are also being created, which means any compulsory redundancies should be kept to a minimum. Trade Unions have been actively engaged in collective consultation and we aim to implement these changes in readiness for the 2024/25 academic year.
We are committed to remaining a large and broad-based university, and throughout this period of change we have been working to ensure that we minimise any disruption for our students and maintain levels of quality. These measures are about changes to organisational structure, and do not affect our course offer, which we regularly review based on student numbers, applications and employer needs.
We have also implemented measures to reduce costs in non-academic areas, such as reductions to operating budgets and a pause on recruitment to vacant posts. Proposals for further cost-saving measures in non-academic areas are being made available for affected staff, and Trade Union representatives will be engaged in any collective consultation where this is required.
Universities right across the country are having to make tough decisions about the way they operate. We are proud of our Gold-rating teaching in the Teaching Excellence Framework, our award-winning research, and our role in the city and region. Our mission to transform lives will continue to shape all that we do, and we will work to ensure that any changes we make over the period ahead are consistent with this ambition.
