The universities of East Anglia and Reading have both reported sizeable deficits in the latest sign that research-intensive non-Russell Group universities are being hit hard by the financial crunch facing the sector.

UEA has been trying to manage deficits for the past few years through a series of cost-cutting measures, which also saw the resignation of its previous vice-chancellor.

Its underlying deficit for 2024-25 is £22.3 million – an increase on an adjusted deficit of £7.6 million the year before and its fourth successive loss. The institution also faced underlying deficits of £18.2 million in 2022-23 and £13.9 million in 2021-22.

UEA said its increased deficit can be partly attributed to a fall in student numbers linked to immigration policy changes introduced by the previous government, which had a direct impact on tuition fee income.

ߣߣ��Ƶ

“The fall in student numbers had a direct and immediate impact on the university’s financial position, requiring difficult decisions to safeguard our long-term sustainability,”

Although the university’s overall income remained broadly similar to the previous year, domestic tuition fee income declined by £3.4 million as a result of increased competition for UK students.

ߣߣ��Ƶ

And overseas tuition fee income fell by £9.1 million from £51.1 million in 2023-24. UEA said this was largely owing to a decline in international postgraduate enrolments following visa changes introduced earlier in the year.

But the institution did manage to generate a net cash inflow from operating activities of £26.9 million, compared with £8.9 million in 2023-24.

“This represents a significant achievement given the financial challenges faced during the year and reflects strong management of working capital and overall cost control,” say the accounts.

Staff costs at UEA increased by £13.2 million to £202.6 million last year, largely due to the timing and structure of pay awards.

During the year, the group paid £1.2 million in compensation for loss of office to 79 employees, and a further £1.3 million was paid to 74 employees in August 2025.

A UEA spokesperson said the results this year were in line with expected forecast before accounting provisions against joint venture loans and movements relating to pension schemes.

ߣߣ��Ƶ

“Encouragingly, the outlook for 2025-26 and beyond has stabilised significantly, with student numbers now exceeding initial projections for the current academic year. Although financial challenges remain, we are confident in our position moving forward.”

Elsewhere in the sector, the University of Leeds recorded an underlying operating deficit of £8 million and of £10.8 million when movements from the USS pension scheme are excluded.

ߣߣ��Ƶ

It said it faces significant challenges, including intensive competition for student recruitment, growing student expectations around facilities and teaching and learning quality and increasing staff costs.

Its deficit was reduced from a loss of £23.3 million in 2023-24, which the university said was a result of growing income by almost £10 million through more education contracts.

In a statement, Robert Van de Noort, vice-chancellor of Reading, said it was encouraging that it was making progress with driving down the annual operating deficit.

“It is clear that further growth and savings work will be necessary to eventually eliminate our deficit. A number of initiatives are under way to help achieve this.

“Thanks to healthy financial reserves, we will continue to take a patient and considered approach to achieving financial sustainability over the coming years.”

The University of Bath has also published its accounts and recorded a deficit before gains and losses of £18.5 million, which was down from a £75.2 million surplus in 2023-24.

ߣߣ��Ƶ

But this can be partly attributed to an exceptionally large depreciation charge as a result of the institution’s accounting policy of revaluing its properties each year, and by adjustments for pension schemes.

patrick.jack@timeshighereducation.com