BUFDG Digest 16 July

BUFDG  

The findings of the Student Income and Collection Management Survey have been published, with input from 65 higher education providers (HEPs) across the UK. The report presents a comprehensive overview of institutional approaches to managing student income, covering areas such as team structures, payment processes, fraud prevention, debt collection, and the application of sanctions. The survey was developed with the support of the BUFDG Student Income Collection and Management Working Group to ensure relevance and sector alignment. The report is intended to provide members with insight into current practices across the sector and to support benchmarking of institutional policies and procedures. 

FINANCIAL SUSTAINABILITY  

The latest Department for Science, Innovation and Technology (DSIT) annual report confirms that government is developing legislation to enable HEPs to access a formal insolvency regime. This forms part of contingency planning for the “possible” but high-impact risk of a provider exiting the market or closing major research functions due to financial pressures. Other measures include coordination between DSIT, DfE, UKRI and OfS, and the creation of a departmental “response playbook” to manage potential disruption to R&D and reputational risk.  

A new report from the Office of the Independent Adjudicator (OIA) and SUMS Consulting, and accompanying Wonkhe article, urges universities to treat student protection during provider closure as a strategic priority, not just a compliance task, as financial pressures increase the risk of market exit. 

A recent survey by PA Consulting confirms that financial sustainability remains a top concern for vice-chancellors, who are focusing on cost control, operating model redesign, income diversification, portfolio review, exploring shared services, and embedding digital tools. In ‘Financial sustainability is for life, not just for the tricky times’, Wonkhe’s David Kernohan argues that financial sustainability isn’t just a crisis response — it’s a mindset that should be embedded in institutional strategy.  

For those wondering where to begin, GuildHE’s checklist for senior leadership teams offers a practical starting point with prompts on culture, governance, and financial understanding drawn from the recent Scottish Funding Council (SFC) report on Dundee. The comments on this Wonkhe thought piece suggest ‘Pracademics’ could and should be part of the solution. 

In response to a parliamentary question on staffing cuts in higher education, DfE's Janet Daby acknowledged that some providers are making difficult decisions to safeguard financial sustainability, while reiterating that the government expects institutions to work constructively with staff to identify efficiencies.  

A Russell Group briefing states ‘the government must urgently work in partnership with the sector to develop a long-term sustainable funding model’ alongside analysis demonstrating that while universities continue to pursue efficiency savings, these measures alone cannot resolve the scale of the funding shortfall. 

SECTOR 

The NSS 2025 results are in, with Advance HE analysis finding that student satisfaction has improved across most themes despite ongoing financial pressures.  

The latest updates from the Department for Education confirm that modular funding under the Lifelong Learning Entitlement (LLE) will be limited to HTQs and level 4–6 modules that align with priority skills areas in the government’s industrial strategy, franchised modular provision won’t be permitted, maintenance support will be credit-based, and that providers with TEF Gold or Silver will benefit from a streamlined approval process. The University Alliance response highlights some of the barriers unaddressed by the latest announcement, however DfE remains on track to release the new funding system in September 2026 for courses starting in January 2027. Wonkhe has taken a deep dive into the detail, and the vice-chancellor of Birkbeck, University of London, laments the ‘disappointing’ and ‘unambitious’ updates (£).

Elsewhere, Wonkhe's Jim Dickinson unpicks what’s behind the DfE announcement that only 56% of full-time undergraduates on Plan 5 loans in England are now expected to fully repay their student loans.  

The government’s new 10-Year Health Plan for England sets out a sweeping reform agenda for the NHS, with a strong emphasis on prevention, digital transformation, and workforce expansion. While the plan is light on detail about the role of universities, it has clear implications for H E — particularly for institutions involved in health education. On Wonkhe, Jim Dickinson raises concerns about the financial burden placed on students training for NHS careers, while a lowdown piece from others on the team explores how the plan intersects with HE and research priorities. Meanwhile, a new report from King’s College London warns that deprioritising academic partnerships could undermine NHS innovation and long-term sustainability. 

Universities UK International continues to engage with the Home Office on proposed changes to the Graduate route and Basic Compliance Assessment (BCA) thresholds, following the May immigration white paper. The sector is seeking clarity on when changes will take effect, particularly to reassure students arriving this autumn. While some reassurance has been offered for PhD students, concerns remain around the potential impact of tighter BCA metrics. UUK is calling for a phased approach, better data sharing from UKVI, and consultation on the proposed red-amber-green (RAG) rating system. Queries can be directed to Charley Robinson, UUKi's Head of Global Mobility. 

Speaking at a recent BUILA conference, Skills Minister Jacqui Smith reaffirmed government support for international students, while defending the tougher measures and the potential introduction of a levy on universities’ income from international fees as necessary to protect the UK’s global reputation, rather than punitive.  

In its response to the Immigration White Paper, the British Academy has urged the UK government to rethink its proposed levy on international student fees, warning it reflects a poor grasp of university funding pressures and could harm the UK’s global competitiveness. It also called for clarity on indefinite leave to remain rules, especially for global talent visa holders, and a review of visa costs, stressing the vital role of international students and researchers in the UK’s research ecosystem. In a Financial Times interview (£), outgoing Academy president Dame Julia Black warned that England’s higher education system faces long-term decline without a major policy overhaul,  criticised the government’s fragmented approach, and advocated for a cross-party commission to explore reforms.  

Following recent dispute resolution talks, UCEA has written to sector trade unions with what it describes as its ‘Full and Final’ offer for the 2025–26 pay round. While the main terms remain consistent with those outlined in May, the letter introduces a few proposals for collaborative work on specific issues outside the formal New JNCHES framework. 

SCOTLAND  

The SFC has appointed Professor Cara Aitchison as its new Chair, following a period as Interim Co-Chair. The SFC also published minutes from its February and March 2025 board meetings, including approval of £22 million in loan and grant funding for the University of Dundee to support financial sustainability and transformation. 

A recent blog from Universities Scotland highlights strong student satisfaction across Scottish universities, with positive feedback on teaching quality and support services. The piece argues this reflects the value of sustained public investment in higher education and the sector’s commitment to student experience. 

WALES 

For those of you who are UCEA members (check with your HR colleagues), 25:016 - Clinical academic salary scales for Wales with effect from 1 April 2025, covering the agreed pay uplift for clinical academic staff in Wales from 1 April 2025. A summary of the details from Julia here.  

The Welsh Sennedd has voted to introduce a ‘Tourist Tax’ from 2027 onwards (at the earliest). It will be up to individual councils whether they choose to implement the levy in their area, but given the state of local authority finances it’s reasonable to consider it would become fairly widespread. It shouldn’t affect typical student accommodation but may impact conference facilities and events that make use of student accommodation outside of term time. Andrea has the lowdown here. The Senedd enters summer recess on 18 July. 

Welsh H E Minister Vikki Howells has provided an update following a Welsh Universities Vice Chancellor Roundtable Meeting, confirming progress on key initiatives including the review of student finance, Medr’s landscape analysis, and collaboration with the Competition and Markets Authority (CMA). The letter referred to recent CMA guidance on lawful collaboration between HE providers, encouraging joint working where it benefits students and avoids anti-competitive risks.  

Meanwhile, a new Education Policy Institute report urges more decisive action to improve post-16 outcomes in Wales, highlighting falling H E participation among boys and calling for better data and a review of apprenticeships.  

Universities Wales welcomed National Student Survey findings that student satisfaction in Wales exceeds the UK average across all themes, and highlighted it as a reflection of the sector’s commitment to delivering a high-quality student experience, even in challenging times.  

TAX 

Read the latest TaxHE for reflections on the recent Tax Conference, including HMRC’s increased compliance focus, international tax developments, practical insights on automation, governance, and cross-team collaboration. The BUFDG Tax Conference 2026 will be online during the w/c 8th June 2026 (actual days to be confirmed), and 2017 will be in person at Edgbaston Park Hotel & Conference Centre on 9th and 10th June 2027. Save the dates!  

Julia has summarised the key amendments highlighted in the Employments Rights Bill and how they may affect the H E sector. 

FINANCIAL REPORTING  

The next FEHE SORP Implementation Forum has been scheduled on Tuesday 9 September, 1-3pm, following an excellent first meeting. Find out more about the Forum, notes from 8 July, and book your place here.  

As the publication of SORP 2026 draws closer, we have created a short ‘Ready, set, SORP’ guide summarising the key areas finance teams need to know now, and the practical steps they can begin taking to get SORP-ready including a handy checklist.  

The Financial Reporting Council (FRC) has today published its Annual Review of Audit Quality, which shows continued improvement among Tier 1 audit firms, but concerns over consistency at some firms, prompting calls for sustained investment and cultural change 

PROCUREMENT 

The HEPA and EAUC Responsible Procurement Group has produced a summer 2025 update, including an overview of the group, details of completed and ongoing activity and resources, and information on how you can get involved in the sub-groups of specific responsible procurement areas. For further information or feedback, please contact the RPG Chair, Helen Baker. 

The Transforming Public Procurement team are seeking contributions to the upcoming Register of Commercial Tools (RoCT), launching summer 2025. The RoCT will list live commercial tools (e.g. frameworks, DPS) under PCR2015 to improve visibility and transparency. Tools under the PA23 regime will be auto-populated. Participants should complete the data template and email it to the Cabinet Office as soon as possible. See the FAQs for more information, or contact the Cabinet Office team for support. 

PENSIONS  

We expect publication of a disclosure note from USS in late July/early August, as per previous years. It is not expected there will be significant differences from last year given the valuation won’t be taking place until next year. We will keep in touch with USS and share when we have an update.  

UCEA will be responding to the 25:014 - Local Government Pension Scheme – Access and Fairness consultation (login required) as various changes to the LGPS have been proposed. If you’re interested in responding, please provide your comments to Richard Paul by 24 July 2025. UCEA has also issued their latest Pensions Newsletter July 2025 which looks at the new Pensions Schemes Bill, the future of pensions salary sacrifice and updates from the main HE pension schemes. 

RESEARCH AND INNOVATION 

The European Commission was expected to unveil its proposal for FP10, the next EU research and innovation programme, on 16 July. In advance of the announcement, the Russell Group urged the European Commission to prioritise fundamental, curiosity-driven research and ensure inclusive access for non-EU partners like the UK, warning that overemphasis on competitiveness risks undermining the long-term value of collaborative science. However, at the time of publishing this Digest no announcement had been made.  

UKRI has outlined plans for a new Local Innovation Partnerships Fund to support co-created proposals between civic authorities, industry, and research organisations in areas with strong innovation ecosystems. The fund will back activities aligned with national priorities and regional growth, excluding basic research. UKRI has also published its annual report and accounts.  

The Science, Innovation and Technology Committee received correspondence from UKRI, following up on the ‘innovation, growth and the regions’ evidence session held earlier this year. The letter provided further detail on regional research funding and innovation support, reinforcing the importance of place-based investment. A few days later the same committee heard evidence from UKRI and Innovate UK leaders on the UK’s research and innovation landscape, highlighting the need for long-term research investment, better commercialisation pathways, and improved access to capital for innovation. Meanwhile, in a separate Lords committee session, Innovate UK chair Tom Adeyoola argued that the “grant writing industry is obsolete” in the age of AI, calling for new assessment models with more human interaction.  

DSIT has published a capacity and benefits study and evaluation of the now-closed Global Challenges Research Fund (GCRF). The report highlights how GCRF built UK capacity for development-focused research, and supports the case for continued investment in international partnerships and challenge-led research, despite ongoing constraints on ODA budgets. DSIT also published the final evaluation of the UEZ pilot, which ran from 2016 to 2023. The programme supported local economic growth by funding affordable commercial and incubation spaces at five universities to strengthen links with research and development businesses. It delivered good value for money, but university business engagement declined over time. 

A Russell Group briefing and accompanying Wonkhe analysis underline the strategic and economic value of the UK’s global research collaborations. These partnerships not only drive high-impact science and innovation but also enhance the UK’s diplomatic influence and soft power. Both pieces call for stable, long-term policy and funding support to protect and grow these vital international links. Closer to home, Times Higher Education (£) showcases the Cambridge and Manchester innovation collaboration ‘blueprint, with both vice-chancellors making the case that collaboration between UK universities is more effective than competition for driving innovation and economic growth. In a new cross-city partnership backed by £6 million in funding, the two institutions aim to activate existing assets and networks to accelerate research impact, attract investment, and support inclusive prosperity, offering a scalable model for national innovation.  

The Wellcome Trust's latest report urges the UK to become the global partner of choice for R&D, highlighting the economic and diplomatic value of international collaboration, and calling for a strategic approach to global partnerships to maintain the UK’s scientific leadership and tackle shared challenges. Wellcome also provided oral evidence to a Science, Innovation and Technology Committee inquiry into ‘Financing and Scaling UK Science and Technology’, acknowledging the strength of the UK’s openness and collaborative approach but noting that Brexit and cuts have likely led to a mixed global perception. 

To coincide with its 100th birthday the Leverhulme Trust has announced a funding commitment of an additional £100 million to UK university research over the next few years, on top of their usual £120m annual spend. In this Wonkhe article, Director Anna Vignoles argues that increasing research funding must be matched by investment in research capacity and infrastructure to ensure universities can deliver sustainable and high-quality outcomes. The piece highlights growing concerns about the cost of bidding for charitable funds, which often require significant institutional contributions, and points to the fragility of a system reliant on cross-subsidy. 

Save the date for the next Research Finance Forum, Wednesday 15 October 13.30-3pm (online).  

MEETINGS AND EVENTS  

There are a couple of spaces left on the next Strategic Business Partnering course on the 3 and 4 September.  

The next Financial Planning and Analysis Time to Talk takes place on 9 September, and will include discussion on setting financial targets.  

Book your place at the 2025 TRAC Practitioners Conference, taking place online on Tuesday 23 and Wednesday 24 September. The programme will include a mix of plenary and breakout sessions, offering a comprehensive overview of the work of the TRAC Development Group (TDG), their current activities, and the latest TRAC guidance. 

All future Regional Tax Group Meetings have been scheduled for October and November, dates and booking links can all be found here. 

MISCELLANEOUS  

In ‘Helping professional services get confident with data’, Sophie Crouchman (from our sister PHES organisation UHR) and Laura Jackson (Strive Higher) explore how professional services teams can build confidence with data.  They argue that data capability isn’t just about technical skills, but about culture, confidence, and collaboration, and that investing in existing staff can be more sustainable than relying on external specialists. A timely read for anyone thinking about how finance and other teams can better engage with data to support institutional decision-making.  

JOBS OF THE FORTNIGHT 

The University of Portsmouth is looking for a talented Tax Project Accountant and Compliance Manager to manage non-UK VAT and international tax matters, lead compliance, develop international tax strategies, and work closely with the finance team on global tax projects. Deadline is 25 July (vacancy may be closed earlier than advertised). 

London School of Economics and Political Science are seeking a Finance and Operations Officer to support and maintain the Department of Statistics’ financial and operational activities. The closing date for receipt of applications is 20 July.  

A range of other vacancies can be found on the BUFDG jobs pages.