BUFDG Digest 8 October

BUFDG

All change, but everything stays the same – we are making a couple of changes here at BUFDG, but in many ways they aren’t changes at all. Firstly, our name is now just BUFDG (not the British Universities Finance Directors Group) which we've been quietly moving to over the past year (had you noticed?). You can find out more about this here. Secondly, we're 'retiring' the HEPA brand and bringing all our procurement work and support under the BUFDG banner (you may or may not be aware that HEPA is not a separate legal entity from BUFDG or a separate special interest organisation within PHES Ltd, rather it is a ‘name’ and branding already administered as a working group of BUFDG and paid for as part of the BUFDG subscription). Nothing should change except the name, and you can find out more about this change here.

In case you missed it last week, a reminder of our new team members: Dara Voice, our new Events Manager, generally works Monday-Wednesday, and is the main point of contact for in-person events and most of our conferences; Richard Twiddle, our new BUFDG Support Officer, works Tuesday-Friday, and administers online webinars and meetings, supports Rachel with e-learning, and provides general team administrative support. For any events queries, please use our new events email address which both Dara and Rich can access: events@bufdg.ac.uk.

SECTOR

It’s been party-conference season, and HEPI’s Nick Hillman rounds up the Labour conference here. Labour’s ‘bold new target’ to have ‘two-thirds of young people participating in higher-level learning – academic, technical or apprenticeships – by age 25’ has had quite a lot of discussion on Wonkhe, including whether it is really ‘new’ and how it is a win for the sector.

And of course there was the unexpected good news/bad news announcement around the reintroduction of maintenance grants to be paid for by the ‘new levy on international student fees’ (no longer referred to as a proposed levy). The grants will be for disadvantaged students on ‘priority courses aligned with the government’s missions and the industrial strategy’. It’s also worth noting that the grants will be available at levels 4-6 so the redistribution of the levy funds will include FE. The i paper spoke to Vivienne Stern, Chief Exec of UUK, who said VCs have told her that this will mean ‘“more course closures” and “more job losses” at universities’. No details have been published about what the priority courses are yet, or how disadvantaged students will be identified, and Wonkhe dives into the possibilities here, and explains that Skills Minister, Jacqui Smith confirmed that government is ‘”at an early stage of development”’ with this policy. If the levy is now a given, Wonkhe also examines the risks it could bring in the future, by ‘opening a legislative backdoor into the sector’s pocket’ by hypothesising various future scenarios if the level of the levy is not restricted and the use of the funds is not ringfenced. And this HEPI blog looks at what different universities might do in response to the levy.

HEPI rounds up the Conservative conference here, and Wonkhe’s David Kernohan examines the Conservatives’ centrepiece announcement today that they would cut 100,000 university places a year, due to be announced this morning.

UUK has published an explainer on civic universities as well as article on why civic universities matter. But the role of the civic university in local areas doesn’t seem to have cut through to government (yet?) with no mention of universities at all in the government’s new Pride in Place Strategy. This omission is considered in this Wonkhe blog, along with the thought that ‘[r]ather than developing shared services with another university, perhaps instead a university could merge with its place?’, with ‘assets, facilities and buildings’ working for both students and residents, and costs shared with local public sector organisations.

At the other end of the scale from local university issues, UCL has been in the press (both mainstream and H E press) over the past week, after running out of Confirmation of Acceptance for Studies (CAS) allocations and leaving hundreds of international students high and dry with no university place having spent thousands to get to the UK and secure accommodation. Could this be a growing issue or is this a one off? This Wonkhe piece questions the role of consumer law in this situation.

AdvanceHE and the Committee for University Chairs (CUC) have published a report developed in collaboration with City St George's, University of London which ‘provides evidence-based guidance on navigating the complexities of university mergers’. The report also mentions a proposal for a ‘draft roadmap for higher education institutions considering mergers, with City St George's serving as a case study. The roadmap will offer clear guidance to support institutions through the merger process ensuring strategic alignment to achieve operational efficiency and benefits to stakeholders. Designed by and for the sector, Advance HE will continuously refine this resource with contributions and insights from other institutions and sector stakeholders and their merger stories, ensuring it remains relevant and effective.’

UUK has published a response to the OfS consultation on a new condition of registration for franchising arrangements, displaying broad support for the aims of the proposals but requesting clearer definitions, no extension to other kinds of partnerships, appropriate checks and balances around subcontractual arrangement directions, and consideration of the context in regard to the rationale for franchising in each arrangement.

HEPI has published this blog looking at what unconventional reform of the H E system could look like, including life long learning throughout adulthood, micro-credentials and stackable awards, variety of choice in modes of provision, and funding structures shared between individuals, employers, civic authorities and the State.

The OfS has issued regulatory advice 14 for providers completing the Annual Financial Return, as well as next steps in considerations for the LLE including what data the OfS will collect about modular provision.

FUNDING

Wonkhe’s Jim Dickinson examines how universities in England are dealing with fee increases and how this fits (or doesn’t) with consumer protection.

The DfE has announced changes to grant funding for initial teacher training (ITT) courses, with Schools Week analysing the changes (including cutting funding for shortage subjects such as maths and foreign languages).

Turing scheme funding allocations (for international study and work placements) for 2025-26 have been published, with 147 out of 148 H E applications being successful.

SCOTLAND

The SFC has published its report on the ‘aggregate picture of the financial health of Scotland’s… universities’ (excluding figures from the University of Dundee). Headlines (which won’t be news to most in Scottish universities) include a significant deterioration in operating surplus in the sector down from £210.8m in 2022-23 to £17.2m in 2023-24, with a forecast of an underlying operating surplus of £51.5m at the end of 2024-25; the underlying position is expected to decline to a deficit of £12.9m in 2025-26 before returning to a surplus of £134.9m in 2026-27 (though this improvement is mainly driven by three universities, with more optimistic forecasts for income and also reflecting the impact of savings on staff restructuring in the two prior years); nine universities are in deficit in 2023-24, increasing to 10 in 2024-25, projected to be 11 in 2025-26, then projected to reduce to seven in 2026-27; estates issues are a big strain; figures include a 15.7% increase in international student fees from 2023-24 to 2026-27; there is a forecast 10% reduction in the cash position between July 2024 and July 2027; among others. Universities Scotland comments on the report here, describing it as ‘starkest set of financial figures we have ever seen for Scotland’s universities’.

Outgoing Glasgow VC Anton Muscatelli has called for a comprehensive review of HE in Scotland where ‘Scotland needs to work out what it wants from higher education and then decide how to pay for it’. And Scottish H E minister Ben Macpherson announced that the Scottish government will work with the H E sector to develop a ‘new vision for Scotland’s universities’. The project is already underway and he will set out more information ‘in the next few weeks’ on the new vision which must consider ‘how do we adapt, how do we reform, how do we deliver efficiency if we can, and most importantly how we serve learners’. Listen to his comments in this clip from the Education Committee hearing on 1 October, which also sets it in the context of tuition fees being off the table.

Prompted by the Gillies Review of the University of Dundee, the SFC has published its expectations of good governance at Scottish providers, including setting out how the SFC will undertake ‘closer monitoring’ of adherence to the Scottish Code of Good Higher Education Governance.

Universities Scotland published a briefing in advance of the Tertiary Education (Scotland) Bill first stage debate, focusing on an opportunity regarding Graduate Apprenticeships. The bill passed with support from the SNP and the Green Party.

WALES

Medr has launched a consultation into the apprenticeship programme in Wales.

MA / TRAC

Delegates can now access recordings from the TRAC Practitioners Conference. Also please remember to complete the feedback survey here. Any non-attendees who would like access to the content can still purchase a ticket here.

TAX AND PAYROLL

Do you have any items you think should be discussed with HMRC in relation to imports? Have a look at Andrea’s discussion board post, and get in touch if you do.

HM Treasury has issued an interim report on transforming business rates, setting out  the government’s priority areas to improve the operation of the business rates system and incentivise investment and growth, including consideration of a new business rates structure based on marginal tax rates. Find out more here.

Several regional tax group meetings are coming up this month, so if you haven’t booked your (free) place yet, find out more here. There are lots more free, online tax meetings and events taking place this month too.

The Institute for Fiscal Studies (IFS) is holding a webinar looking at ‘Tax options for a tight Budget’ on 13 October, 10-11am. You can register here.

PROCUREMENT

As mentioned above, we’ll be 'retiring' the HEPA brand over the next few months to bring all our procurement work and support under the BUFDG banner (you may be aware that HEPA is not actually a separate organisation from BUFDG, rather it is a ‘name’ and branding administered as a working group of BUFDG and paid for as part of the BUFDG subscription). Nothing should change except the name, and you can find out more about this change here.

Wonkhe has an interesting piece on joint procurement of technology platforms this week, looking at the Norwegian SIKT shared services example, and what Jisc is looking at in this space at the moment.

There are a number of Procurement Act Live events from the Government Commercial Function coming up this month – find out more here.

COUNTER-FRAUD

We’re exploring the possibility of setting up a member forum to discuss fraud issues. If you’re interested, keep an eye on this discussion thread.

We know a lot of universities are currently looking at how best to get large amounts of staff trained in the requirements of the new ECCTA Failure to Prevent Fraud offence. So don’t forget that ANYONE in a BUFDG member university can access our new ECCTA Failure to Prevent Fraud e-learning course. All our e-learning courses can be accessed from this webpage, and anyone who doesn’t already have a BUFDG account can sign up from that page too (and your university can get reports on who has completed the course to evidence your staff have been trained).

RESEARCH AND INNOVATION

Our next research finance forum takes place on 15 October from 1:30-3pm, with speakers from UKRI – find out more and book your place here.

Applications are now open for the new Local Innovation Partnerships Fund, (a pot of up to £500m announced in the spending review for local research and innovation), and UKRI has published guidance on how the scheme works.

FINANCIAL REPORTING / SORP

A reminder of the next SORP Implementation Forum on Tuesday 11 November, 11am-1pm. The online discussion will include Harriet Latham from Big For Tax considering the tax implications of the FRS 102 changes, which take effect from 1 January 2026.

SUSTAINABILITY / ESTATES

Shakespeare Martineau have an article about the new regulations around heat networks which will come into force in January. Among other changes, the new rules will require budgeting for ‘infrastructure upgrades, improved digital systems, staff training and new internal processes to ensure compliance and support customer service’.

PENSIONS

Spence & Partners have launched a tool to support trustees and sponsors of Defined Benefit (DB) pension schemes to develop, monitor and update their endgame strategies. It considers scheme size, funding position, covenant strength, and corporate priorities, to provide detailed, bespoke feedback on its readiness and options.

MISCELLANEOUS

We’ve got our South West Deputy FD meeting on Friday (10 October), and a Time to Talk session on transforming recruitment for strategic efficiency gains on 14 October.

The IFS is holding an in-person and online ‘IFS Green Budget 2025’ event on 16 October, with key insights from analysis of the UK economic outlook, developments in the gilt market, public finances and tax options, followed by a panel discussion and audience Q&A. Find out more and register here.

Wonkhe has published the first tranche of findings from its HE staff survey, based on 4,757 responses.

Jobs of the fortnight: Coventry University is looking to fill two important senior roles in the finance team. The Director of Financial Operations will 'oversee financial transactions and ensure legal compliance across the Group. It involves setting and executing financial policies and procedures, building a high-performing team, and supporting the Group’s corporate plan through efficient shared services'. Meanwhile the Director of Financial Performance Management will 'oversee multiple finance sub-teams—Financial Performance, Planning & Control, Systems Transformation, and Management Accounting—to deliver strategic and operational financial services across the Group'. The deadline for both roles is 15 October.

And the University of Portsmouth is looking for a Deputy Director of Finance and Procurement (Management Accounting & Business Partnering) to ‘deliver the provision of high-quality financial insight, and relevant models and tools, to enable budget holders to manage costs and allocate resources effectively and promote financial literacy across the University’.

As usual, there are lots of other vacancies listed on the BUFDG jobs page.