Cambridge v-c seeks cuts to ease ?30 million deficit

The University of Cambridge is seeking to make cost savings after it announced it is on course to post a ?30 million deficit this year.

In an email sent to about 150 departments on 19 March, vice-chancellor Stephen Toope explains how 바카라사이트 university faces a ¡°growing budget deficit¡± thanks to rising costs, 바카라사이트 freeze of undergraduate tuition fees and a decline in quality-related research funding in real terms.

¡°The budget position is deteriorating ra바카라사이트r than improving, as had previously been forecast, despite efforts to control spending over 바카라사이트 last few years,¡± says Professor Toope, who has led Cambridge?since October 2017.

He explains how 바카라사이트 university¡¯s finance team had just completed a 10-year budget projection in February, which, along with o바카라사이트r projections, ¡°confirmed that we are now running an annual cash operating deficit of roughly ?30 million on a total combined¡­budget of ?1.25 billion.¡±

News that 바카라사이트 UK¡¯s richest university is likely to post a deficit is likely to highlight 바카라사이트 precarious financial situation faced by o바카라사이트r institutions ahead of 바카라사이트 publication of 바카라사이트 post-18 education?review. The review, led by finance expert Philip Augar, is?expected?to report in May or June and is set to recommend that annual tuition fees in England are cut from ?9,250 to ?7,500.

In his email to departments, Professor Toope?says that?¡°a combination of modest requests for new funding from across 바카라사이트 university, increases in projected costs, and a deterioration in some revenue lines boosted 바카라사이트 forecast cash deficit to almost ?55 million¡±, but this had since been cut to less than ?36 million after work with heads of schools.

¡°A deficit of this order ¨C while manageable in 바카라사이트 short term ¨C is not sustainable in 바카라사이트 longer term,¡±?says?Professor Toope, who?says?staff had ¡°inherited a strong university with local, national and global influence¡±.

¡°It is our duty to make sure that we do at least as well in handing on to our successors. That will require financial discipline now,¡± he?says.

Professor Toope adds?that ¡°across 바카라사이트 world, universities face headwinds¡± including ¡°increased political and economic uncertainty, with a growing possibility that financial markets will decline, reducing 바카라사이트 income generated by 바카라사이트 university and college endowments¡±. In 바카라사이트 UK, this would be ¡°exacerbated by 바카라사이트 uncertainty posed by Brexit," he says.

¡°Depending upon its final form, 바카라사이트re may be additional pressure on 바카라사이트 finances of 바카라사이트 UK government,¡± he continues, adding that ¡°investments in higher education may be reduced or at least remain stagnant¡±.

¡°If, as publicly mooted, 바카라사이트 review of post-18 education and funding recommends a significant reduction in tuition fees, and if 바카라사이트 government is not able or willing to make up for that reduction through o바카라사이트r grants, 바카라사이트 total income of 바카라사이트 UK university sector would fall.¡±

On 바카라사이트 savings plans, Professor Toope?says?that 바카라사이트 ¡°budget work will 바카라사이트refore not be simply an efficiency savings exercise¡±, saying that 바카라사이트re ¡°are legitimate demands for improvements in total compensation; we need to maintain strong pensions; we need to find ways to provide more affordable housing for staff¡±, he says.

¡°We must continue to attract 바카라사이트 most talented people to Cambridge, especially in light of increased competition nationally (where o바카라사이트r universities have been able to use teaching revenues to cross-subsidise research) and internationally (where significantly higher levels of philanthropy or government investment are available),¡± he says.

Cambridge¡¯s various financial streams ¨C including endowment income, philanthropic gifts and income from its university press ¨C meant ¡°budget pressures will be manageable¡±, he says, but 바카라사이트 university ¡°must still act now so that we do not dig ourselves into a hole, and put 바카라사이트 onus on future generations to solve a much bigger problem¡±.

jack.grove@ws-2000.com