BUFDG Digest 2nd July

BUFDG

We’re pleased to announce that three new eLearning modules have landed on Conflicts of Interest, Stakeholder Relationships and Business Analysis and Insight, so we’re now up to 52 in total, covering everything from general finance, business partnering, procurement, compliance, tax, people issues, and more. We also have four more on the way in the next few weeks. These are: Subsidiaries and Spinout Companies - Roles and Responsibilities for Finance Leaders; Compliance Awareness for Senior Leaders; Understanding University Spinout Companies, and; Strategy into Action (Business Partnering). It is also worth noting we are working on others including Failure to Prevent Fraud (a few people are asking about this in line with the Failure to Prevent Fraud offence coming in September).

We’re also pleased to open booking for the 2025 TRAC Practitioners Conference, taking place online on 23-24 September. As usual, it will include a mixture of plenary and breakout sessions and give delegates a thorough overview on the work of the TDG, their activities and of course the latest guidance on TRAC. It provides valuable insights into TRAC whether you are just beginning your TRAC journey or have been involved for a number of years. The course costs £95 per delegate and, as with most of our events, we expect this to gain CPD certification and should be able to ‘put the sticker on it’ in the next few weeks.

The Education Select Committee is currently undertaking a mini-inquiry into Higher Education and Funding: Threat of Insolvency and International Students. BUFDG is planning to submit evidence to the inquiry, and we know that the proposed international student levy is something that is concerning a lot of colleagues, so if you have any points you would like us to include and/or any useful data for the submission, please let Amanda know by Friday 4 July (this Friday).

SECTOR

London Economics has published a major analysis of HE sector finances across the UK, using 23/24 HESA data. It focuses on three financial indicators: net cash inflow from operating activities after finance costs (NCIF); net current assets (NCA); and liquidity days. According to the launch briefing, “All three indicators show a decline in providers’ financial stability”, with 47 of the 118 HEPs analysed (40%) showing a negative NCIF, and 20% with fewer than 30 days liquidity.  

The government has launched its awaited Industrial Strategy, a 10-year plan to drive growth across 8 specific sectors, including creative industries, life-sciences, and clean energy, and of which it hopes the university sector can play a significant role. The strategy includes the creation of the global talent fund (see more below), and it is covered in a number of articles from the team at Wonkhe, who examine the announcement in more detail. Michael Salmon picks out the general impact on HE, David Kernohan examines what it might mean for the 8 focus sectors, while James Coe issues a challenge to the sector that he fears is at risk of being left behind.

As part of its industrial strategy, the government has announced the launch of a £54 million Global Talent Fund, with universities receiving funding over five years to cover relocation and research costs for world-class researchers and their teams, enabling them to attract top international talent in key sectors such as science, technology, and engineering. The initiative also expands visa opportunities and streamlines recruitment, hopefully making it a little easier to bring in highly skilled researchers. As a reminder, whilst the global talent visa doesn’t require employer sponsorship, applicants will need endorsement from a recognised UK body (or prestigious prize), so expect to guide candidates through endorsement processes.

If you haven’t read it already, there is an interesting article on Wonkhe written by Charlie Jeffery, V-C at the University of York, outlining how international students aren’t just boosting campus vibes, they’re a powerhouse for local UK economies. New research from Public First shows that interntional students are like an export industry, bringing in billions and raising everyone’s wages (up to £500 a year for the average worker). In over 100 UK constituencies, they’re as vital as car plants or steel mills. The takeaway? International students don’t just help universities, they make whole towns and cities richer and more vibrant. In related news, the government has published its own data on the revenue generated from TNE activity in 2022, although Wonkhe’s David Kernohan is less than thrilled with the metrics used.

In other news, the OfS is to resume assessments for new registration, degree awarding powers, and university title applications in August 2025. It’s also published its technical guidance for providers on payment of its annual fees. Meanwhile the government has published its annual LEO data on educational outcomes, as well as its Trade strategy, of which universities get a cursory mention. CASE has published its annual insights report on educational philanthropy, noting a 13.7% increase (to £1.52b) in total new funds raised for 23/24.

SCOTLAND

Prosper, the ‘trading name’ of the Scottish Council for Development and Industry, is an ‘apolitical’ think-tank that has published a major report on how Scotland can leverage its strengths to power growth. Drawing on insight from a range of different organisations including Universities Scotland, Scotland’s Blueprint: The Art of the Possible reads something like an unofficial industrial strategy, and as would be expected makes recommendations that would impact significantly on the Higher Ed, including on life-long learning and employability. It also makes a specific call for the estabilishment of “a full, independently-led review of university funding which will identify a new way that will safeguard worldclass learning and innovation at Scotland’s universities, and will meet the needs of Scotland’s people and economy”.  

The SFC has published its ‘facts and figures’ of Higher Education students at Scottish institutions, covering the 23/24 intake. These show a 155,030 total entrants to Higher Education, down 5.7% in total from the prior year, driven largely by a drop of almost a quarter (24.5%) in non-EU international post-grads.

In other SFC news, the regulator has published its annual report on net-zero and sustainability, delivering action taken within the organisation as well as how it seeks to use its financial and regulatory leavers to drive progress in the organisations it funds and regulates. The SFC has also

released a report on its independent investigation to determine the causes and contributing factors to the deterioration of the University of Dundee’s financial position.

WALES

Medr has published its accounts direction for HEPs in Wales for 2024/25 financial year. There are a few changes from prior year, including the request for an explanation where there are “material items of income or expenditure that are unlikely to recur and/or do not reflect the underlying financial performance” of the institution.

The Welsh sector has had considerable coverage this week, following the appearance of all Welsh university V-Cs across two sessions at Parliament’s Welsh Affairs Committee. The V-Cs were frank in outlining the financial challenges facing Welsh providers, including TPS and NI increases, the long-term fee freeze, and government policy instability. The committee has published a follow-up statement describing the status-quo as unsustainable, and to call for broader system change. There’s also a summary of the sessions in this BBC article.

TAXES

The Tax Conference at the start of June went very well, hopefully those of your team that attended got some helpful takeaways. There’s a discussion board thread where attendees are posting up what they learned from the various sessions they attended (which serve as loose session-notes), and we’ve also made all the session slides available on the BUFDG website. The latest version of TaxHE also contains news of all the fantastic award winners. 

HMRC’s Employer Bulletin is essential reading for payroll, HR, and finance professionals to stay compliant and informed about the latest regulatory changes and best practices. Find a summary of the June edition here.

The government issued a press release celebrating putting £7.4 million back into working people's pockets by identifying employers not paying NMW (representing around 60k workers). Within this announcement there is an education piece around the combination of NMW apprentices and dress codes, identifying NMW failures on various aspects set out in more detail here.

UCEA has published a revised substantive contract for clinical academics in England to reflect the changes introduced by the updated NHS pay structure and related contractual reforms for consultants in 2024. Alongside the new contract, UCEA has updated its guidance for employers of clinical academics, providing clarity on the latest terms and conditions and highlighting differences across the UK nations.

Vialto has shared the UK’s latest Statement of Changes to the Immigration Rules, effective from July 2025, which simplifies the EU Settlement Scheme by allowing pre-settled status holders to qualify for settled status if they have lived in the UK for any 30 months in the last 60 months, offering more flexibility for those with longer absences. The full policy can be accessed here.

Finally, Julia and Andrea have produced a summary article on the potential impact of the US’ ‘One, Big, Beautiful Bill’ on UK universities. If passed, UK universities with financial ties to the US, through endowments, fundraising, research income, or collaborative ventures, may face higher US taxes and increased compliance burdens. The changes are most significant for institutions with substantial US investments or operations, but the broader policy direction may also influence future UK higher education reforms. UK university employees currently working in the US could face higher withholding taxes on certain payments, stricter rules on compensation and benefits, and possible changes to research funding and fringe benefits. While the Bill is not targeted at individual employees, its provisions for nonprofits and cross-border payments will likely have knock-on effects for UK academic staff in the US as well.

FINANCIAL REPORTING

On Thursday 26 June 2025 the FEHE SORP Board approved the draft SORP 2026, and accompanying documents, following updates arising from the Invitation to Comment which closed on 30 April 2025. Documents will now be submitted to the Financial Reporting Council for final review, with feedback expected mid-late July 2025. Pending any final amendment requirements and approval, it is expected the SORP will be published in August. Any change to this timeline will be widely communicated. The new SORP will be effective from financial periods starting after 1 Jan 26 (e.g. 26/27 for most).

Our ‘Preparing for SORP’ webinar is a must watch for those involved in preparations, and registration is open for the first SORP Implementation Forum on Tuesday 8 July 2025.

In addition, HW Fisher are hosting two webinars to help Higher Education employees get ready for the upcoming changes to the FEHE SORP, gain CPD accreditation and to stay ahead in financial reporting, tax and other key finance topics. The first is on 24 September, with the follow-up on 14 Jan.

We’re running an Introduction to Financial Reporting in HE webinar on the 10 July. This is designed for members who would like to understand the fundamentals of Financial Reporting in HE. It is free, and suitable for all levels. We’ll also record it for viewing after the event.

PROCUREMENT

The Cabinet Office have published an open consultation on further reforms to public procurement aiming to strength industry, create jobs, and enhance skills – building on the publication of the Industrial Strategy White Paper. Here’s also the accompanying launch statement from Cabinet Office secretary Georgia Gould.

Colleagues at TEC have produced a short round-up for BUFDG members of their recent work, including news on the TEC energy framework, a policy case-study, and information on the TEC conference in November.

The next set of Head of Procurement group meetings are scheduled to take place in July 2025 – please do book yourself on to the relevant meeting via the links on the events section of the BUFDG website (click the ‘Procurement’ tag button).

PENSIONS

The Pensions Policy Institute has issued their analysis of the Government’s pensions Investment Review report as well a report into the allocation of pension scheme assets.

The government issued Workplace pensions: a roadmap, a 5-year plan to reshape workplace pensions, including consolidation of small pots, ‘megafunds’, a value for money framework, and various DB enhancements.

Pinsent Mason suggests that the government’s Pension Schemes Bill should be welcomed by the pensions industry and sets out some of the key factors, e.g. improving governance, boosting returns, supporting long-term UK investment.

The LGPS ‘Access and Fairness’ consultation has been launched and you can have your say here. It includes proposals on: survivor pensions and death grants, Gender Pension Gap, people who opt out, forfeiture, the McCloud remedy and potential administrative impacts. The consultation closes on 7 August 2025.

The June 2025 Public Service Pensions Remedy newsletter announces new requirements for pension scheme administrators following the pensions remedy for age discrimination. Administrators must now report to HMRC if they issue new or revised pension saving, money purchase, or benefit crystallisation statements for the remedy years (2015/16 to 2021/22), using a specific spreadsheet by 31 January 2026. The newsletter also covers new regulations allowing offset or recovery of overpaid tax charges, joint liability for certain tax charges, new deadlines for scheme pays elections and protection applications, and clarifies rules for top-up lump sum death benefits and split scheme administration.

Finally, Isio have asked us to let readers know that they’re hosting two events to help anyone who has received a Remedial Pensions Savings Statement (RPSS), that may affect colleagues who are members of either TPS or the NHS pension scheme. If you’ve received one, don’t ignore it as you could be owed a tax refund! Receiving a statement full of figures might seem overwhelming, so Isio’s public sector pension specialists are running free webinars (booking links above) to explain what you need to do and how Isio can help. There are also handy digital tools to help calculate your updated tax position for the NHS scheme and for TPS.

RESEARCH

ARMA (the Association of Research Managers and Administrators) have released the results of their most recent financial sustainability survey, which provides a snapshot of member perspectives in March 2025. This exercise was first conducted in summer 2024, and the results show that institutions are increasingly ‘choosing not to bid for some funding opportunities’ and ‘restricting certain types of funding’ in response to increasing financial constraints.

In a thought piece for Research Professional (£), Guild HE’s Head of Research Policy Rachel Persad reflects on recent calls from UKRI and Research England for more strategic, collaborative research and argues that to unlock regional and sector-wide potential, the system must better support smaller and specialist institutions, and move beyond competition to a more inclusive, coordinated approach.

There’s a new mission group on the block. Ten universities have formed ResearchPlus, a new alliance that will officially launch in October. The group has been established to give a stronger collective voice to research-focused institutions outside the Russell Group, aiming to shape national policy and support the UK’s innovation agenda. Many of the founding members were previously part of the now-defunct 1994 Group, reviving efforts to represent high-performing research universities beyond the traditional power blocs.

MISCELLANEOUS

Following the industrial strategy, Secretary of State for Energy Security and Net Zero Ed Miliband announced plans to support banks and large companies in developing climate transition plans, with the aim of making the UK the ‘sustainable finance capital of the world’. While there’s no direct application to HE, the announcement came with a consultation on the exposure draft for the UK Sustainability Reporting Standards (UK SRS – based on IFRS S1 and S2) and, given the void recently in sustainability reporting policy, announcements like this are likely to filter through to DfE eventually.

Parkwalk Advisors and Northern Gritstone have announced the launch of the Northern Universities Venture Fund, an enterprise investment scheme (EIS) fund “offering investors access to early-stage IP-rich science and deeptech investment opportunities from the Universities of Leeds, Liverpool, Manchester and Sheffield”, and targeting investments in sectors including quantum computing, AI, and clean technology.

Our Job of the Fortnight is for a Financial Operations Manager at the University of Gloucestershire. The successful candidate will have “recent relevant experience in managing an Income or credit control team”, and will find themselves “managing both the Income Team and Purchase Ledger team” at the university, as well as managing “the day-to-day operational administration of the sales and purchase ledger and online payment pathways”. The deadline for applications is 10 July.

As usual there are many more vacancies available on the BUFDG jobs pages.