24 October 2014 
Matt Sisson, Projects and Membership Manager
English HEIs could see sector surpluses fall from 3.9% to 3% over the next three years, according to the latest Financial Health of the HE Sector report, published by HEFCE. The analysis covers the financial forecasts for the period 2013-14 to 2016-17, and provides an overview of the financial health of the HEFCE-funded higher education sector in England. The report also finds that “Cash flow from operating activities and liquidity levels is also expected to be lower, at 7.5 per cent of total income and 114 days respectively (compared with 8.3 per cent and 123 days reported in 2012-13)”.
Whilst HEFCE “projections indicate that the sector will be financially stable in the forecast period”, it warns that “the sector also expects its liquid funds to fall from £7.4 billion as at 31 July 2013 to £5.5 billion as at 31 July 2017”, and “expects borrowing to increase from £6.2 billion at the end of July 2013 to £8.3 billion by the end of July 2017". It concludes that the trend is "not sustainable in the long term”.
There’s also a brief round-up on the HEFCE news pages.
