Durham University outlines cuts programme as costs rise in wake of Budget

Durham University is looking to cut jobs and institute a range of other savings as it becomes the latest of the region’s higher education institutions to tackle a funding crisis.

The university - which is one of the top ranked in the country - has written to staff outlining how it is facing “additional financial pressure” as a result of measures introduced in the recent Budget and a fall in overseas students. University bosses said the recently-announced increase in tuition fees would not be enough to cancel out issues and it needed to take immediate action to cut costs.

The university has recently opened applications for voluntary severance, and says it will consider a further round in the new year. It is also looking to a range of other savings, including reducing energy use, phasing planned building projects, reducing spending on hospitality, restricting non-essential travel and reducing the use of external consultants.

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In a letter to staff, university vice-chancellor Prof Karen O’Brien and other senior managers said that recent increases to employers’ National Insurance rates would add £5.3m to its costs, while a drop of nearly 400 overseas postgraduate students would cost it £11.5m.

The letter adds: “We have continued to increase our income and have recruited more home and international students than last year. However, we are not immune to some of the stresses facing the higher education sector, which will not be solved by the recently announced uplift to the home undergraduate fee.

“We now need to act together and take in-year and medium-term measures to shore up our financial position.

“In common with all UK universities, we are operating in a very challenging financial environment. We have succeeded in growing and diversifying income, but our costs have also increased.

“While our university strategy remains the same, we must take further action to ensure financial sustainability. We need to do this while maintaining the excellence and integrity of our education and research, and to protect business-critical and income-generating activities.”

Universities around the country are struggling to cope with rising costs and a fall in income that followed an immigration crackdown by the previous Government that has seen fewer overseas students - who often pay higher fees - coming to study in the UK. Recent months have seen Newcastle, Northumbria and Sunderland universities announcing savings plans that include the likelihood of job cuts.

The region’s universities recently announced plans to launch a new partnership that aims to increase their contribution to the regional economy. Newcastle, Northumbria, Durham, Sunderland and Teesside universities said that they collectively contribute around £2.7bn to the economy and support more than 30,000 jobs.

A Durham University spokesperson said: “Durham University is a world top 100 university, and continues to attract the best researchers, teachers and students from across the globe. All UK universities are facing a very challenging financial environment. Our approach remains to protect the excellence and integrity of our education and research, deliver the best student experience, and play an active and positive role in our region.

“We are taking some actions across the university to ensure financial sustainability in the short, medium and longer term. We have written to all our staff to brief them on these actions and are committed to working with them on implementation.”

UCU regional support official Jon Bryan said: “We have been made aware of various proposals from Durham University that are likely to negatively impact staff and students. The university's management now needs to rule out any compulsory redundancies or detriment to our members. Otherwise, we will be forced to consider balloting for industrial action.”