‘Unprecedented’ fee fall pushes Brunel into £56 million deficit

Brunel University of London has posted one of the largest deficits seen in the UK sector over the past financial year. 

The institution, one of the last members of Universities UK to publish its financial accounts for 2024-25, has joined a growing number to have made a loss.

Brunel said a reduction in income from international fees was largely at fault for triggering its operating deficit to increase from £13 million to £55.8 million last year.

Excluding movements in pension valuations, Brunel’s expenditure remained roughly the same as in 2023-24.

But its total income fell 15 per cent from £270.3 million to £229.9 million, after overseas postgraduate taught student numbers dropped by 46 per cent in just one year.

The accounts said this “unprecedented drop” was seen across the sector amid restrictive immigration policies.

Alongside those at Coventry University and the University of Nottingham, Brunel’s loss represents one of the largest seen so far by any university.

Its accounts said the deficit was also due to investments made to reduce costs in the long term. This included spending £14.5 million on redundancy payments to 507 departing members of staff.

It said the full benefits of the transformation plan will be seen in the coming years, when it is expected to deliver savings of £40 million in 2025-26 and beyond.

“The investment in right-sizing Brunel’s cost base will help secure its financial sustainability in the longer term,” it added.

Excluding the restructuring and other one-off costs, the accounts show an underlying deficit of £36.2 million, which was down from a loss of £7.4 million in 2023-24.

The London institution also recorded a net cash outflow of £22.7 million last year, following a £13.4 million loss the year before.

A spokesperson for the university said: “Brunel University of London is in a secure and sustainable financial position despite unprecedented headwinds across the whole university sector. We are forecasting a return to surplus this year.”

Elsewhere, Leeds Trinity University recorded an operating deficit, before pension actuarial movements, of £13.3 million. This was down from a £1.1 million surplus the year before.

Its accounts said the deficit reflected recruitment challenges, pressure on franchise income and one-off restructuring costs.

And Queen Margaret University posted an operating deficit of £3.2 million in 2024-25, despite its best efforts to “weather the financial storms facing the higher education sector through careful financial stewardship and enterprising approaches”.

“The growth in our income is unable to keep pace with continued inflationary pressures, including the unforeseen increase in employer national insurance.”

patrick.jack@timeshighereducation.com