Uni hails savings after £50m shortfall warning

The University of Sheffield says it has stabilised its finances after warning of a £50m shortfall last year.

All departments were told to make savings after student numbers fell because of a reduction in the number of international students.

The university said it could not give detailed financial figures until the end of the year but added that it was on a more secure financial footing.

A spokesperson said: "We have been making savings across the institution in response to the financial challenges facing most UK universities, with a focus on maintaining an excellent education and experience for our students."

The £50m shortfall was a figure given to staff in an internal briefing to outline the potential loss of income if no direct action was taken.

The university said it did not reflect an official financial forecast and a surplus in its 2023-24 annual report had allowed it to take "considered and measured actions to manage its financial position".

It said it could not give accurate figures until its annual report in December as the figures were "constantly evolving" because of action it was taking and fluctuations in student numbers.

A spokesperson said: "We have already made considerable strides to manage a reduction in income from international students and have a long-term, strategic approach to ensure the future sustainability of our world-class teaching and research, for which Sheffield is renowned."

In its annual report for 2023/24, total underlying income was £862m and underlying expenditure was £856m.

This gave it an operating surplus of £6m.

However, the university is still looking at redundancies, course closures and mothballing projects in a bid to cut costs.

A voluntary severance scheme will open for academic employees in certain areas of the university, which staff are already aware of.

The university has agreed with trade unions there will be no compulsory redundancies during this calendar year.

It said "prudent financial planning and a strategic approach to addressing the challenges facing the higher education sector" had prevented compulsory job cuts.

Just over 300 staff, both academic and non-academic, left via a previous voluntary severance scheme, with the scheme reopening in September.

The University and College Union (UCU) has been approached for comment.

Capital expenditure for new building projects had also been reviewed, with construction of an £86m Central Teaching Lab, due to open on Upper Hanover Street in 2027, put on hold.

The university has also suspended new student intake for 28 of its courses, including postgraduate degrees in sociology, language and linguistics and orthodontics.

Teaching will continue for existing students on these courses, but no new students will be enrolled in the 2025/26 academic year.

Here is the full list of suspended courses: