BUFDG Digest 7 May 2025

BUFDG

You can now read our Annual Report for 2024-25 and watch our Annual Review highlights video (covering the period in between Finance Festivals from mid-March 2024 to mid-March 2025). We have also issued the BUFDG Senior Finance Leader Salary and Responsibilities Survey Report 2025, which can be accessed by CFOs/FDs on the Finance Directors discussion board.

We held our AGM at the Annual Meeting for CFOs and FDs in Birmingham last week. Erica Conway, (Chief Financial Officer, University of Birmingham) was endorsed as BUFDG Chair for a fourth and final year, and Karen Kroger (Chief Financial Officer, Queen Mary University of London) was endorsed as Vice Chair (Finance) for a third year. No other officers were up for election or renewal. The BUFDG budget for 2025-26 was endorsed along with the new subscriptions, details of which can be found in the Finances section of the Annual Report. We had a fantastic two days with 113 of our CFO/FD members, meeting in smaller ‘mission led’ groups for a day, and then all together in more general sessions the following day. There were some great sessions, lots of ideas sparked, and some brilliant networking opportunities.

And this is the final call for booking your place at the 2025 Tax Conference taking place in Birmingham on 11-12 June – bookings close in two days time, on Friday 9 May!

SECTOR

As part of its transformation and efficiency summit last week, UUK issued a briefing paper on what to expect from its upcoming report from this taskforce. The report should be published later this month and will cover the drivers for change, set out an understanding of the opportunities, and identify the necessary conditions to support greater efficiency and transformation plus the actions required to realise this. Further work on shared services opportunities will be finalised in the summer and workshops will also be provided with guidance on specific topics around catalysing change.

The Times(£) has news that the Education Secretary plans to “publish league tables detailing pay at universities where significant numbers of graduates do not go on to good jobs or further education” in order to “name and shame” universities where VCs receive “bumper pay packages”. The article reports some tough talk from the DfE but crucially makes no mention of whether the league tables will be contextualised by taking any account of the students’ starting points before university when looking at their outcomes, though it quotes university leaders who make this very point. There is also mention of strengthening existing OfS regulations to require universities to do more to improve teaching quality. Obviously this was an opportunity for DK to build an interactive chart on Wonkhe, which he summarises as showing “honestly nothing surprising”, and Wonkhe’s Jim Dickinson is not impressed by this rehashing of “the same failed ideas over and over again” by ministers.

Nor is he impressed by Phillip Augar’s comparison of clawing back VC pay to changes in the financial services sector. Augar (chair of the 2018-19 review of post-18 education and funding) writes in the FT(£) that “the English higher education market is broken”, suggesting that any solution requires “the government, universities and the regulator to change tack”, and making the interesting suggestion that OfS powers should include “clawback of vice-chancellors’ pay in the event of financial catastrophe, a deterrent that has proved effective in financial services”. His mention of “secret government bailouts” for a “handful” of universities has got people’s attention though, and Wonkhe examines the implications.

Various news outlets, including the BBC, have run recent stories on the upcoming immigration white paper, which it seems will include a “crackdown” on “those who come to the UK legally on work or study visas and then lodge a claim for asylum”. The Times(£) explains that “visas will be rejected for individuals who fit the profile of someone who will go on to claim asylum and are from countries with high rates of asylum claims in the UK” such as Pakistan, Nigeria and Sri Lanka, and the Guardian reports that “Ministers are also examining ways to make it more difficult for international students to stay in the UK by taking up low-paid jobs” and that “such a move will face resistance from the Department for Education and from universities, which are reliant on the income from international students’ fees.” The Guardian followed up with more yesterday, including news that the “government is working with the National Crime Agency to build models to profile applicants from these countries who are likely to go on to claim asylum”. The Observer goes as far as to call it “an ­existential threat to the universities sector”. But the Institute for Public Policy Research (IPPR) has suggested the “graduate route should be reformed to ensure it is used for graduate-level work”, calling it an “obvious target” to help bring down net migration, but that government would need to “manage the impacts on universities, which could come with a cost to the Treasury”.

The OfS has published a blog on effective university governance, “in conversation with chairs”, stating that “there are some aspects of governance in higher education in particular – like the size and structure of boards – that might create risks that many if not all institutions should consider”. The blog is based on roundtable discussions held around the country.

Level 7 apprenticeship funding may be getting a partial reprieve for young people, according to FE Week. But, somewhat oddly, the age range that would be eligible for Level 7 (masters level) funding is 16-21 (at the start of the course), making this “important concession” appear more symbolic than practical.

CUBO, the association for commercial and campus services professionals, has released their 2025 Benchmarking Report, providing a detailed analysis of commercial income streams across the sector. It finds commercial income remains resilient, with an average total commercial income of £33.8 million per institution in 2023/24, up 2% from 2022/23, but highlights the financial pressures and opportunities in campus and commercial services. Explore the key findings or request access to the full report via the CUBO website.

The DfE has published its evaluation strategy setting out “how DfE will build its evidence-base to support the planning and delivery of the government’s mission–based agenda and specifically the DfE’s mission”, and also added research priorities to its areas of research interests.

Independent H E has published its submission to DfE, calling on the department to “make higher education the engine of growth”, including six policies to do just that: Technical Education Awarding Powers, Rapid Response Skills Fund, Innovative Online and Blended Learning, Lifelong Learning Framework, Global Professional Learning Strategy, and Flexible Tertiary Education Pathways.

Universities UK (UUK) has published the results of a survey into how its members are tackling financial difficulties, and with high numbers of courses closing, departments being closed, research investment being reduced, maintenance being further delayed, and cuts to student bursaries also being considered, asks “at what cost to the nation?”

THE(£) reports from its Europe Universities Summit that with the H E sector’s “need to adapt because of widespread ‘disruption’ caused by funding challenges and government attacks will leave universities looking very different by the end of the decade”. Key changes will include “disruptive innovation” and “alliances in order to actually work together”.

And cabinet reshuffle rumours are in the air, with reports in the Times(£) that Education Secretary Bridget Phillipson could be replaced by Peter Kyle, the Science, Innovation and Technology Secretary (and previously shadow schools minister), have caused some ripples among unnamed MPs.

FUNDING

The most recent YouGov Political Trackers polling from last week shows that 40% of British adults think that too many people go to university (versus 19% thinking not enough, and 21% think it’s about the right number); 52% think university education should be paid for by those who go to university (versus 27% thinking it should be paid for through general taxation); 49% think the current English undergraduate arrangements are a fair way of funding university education; but 51% agree that tuition fees of £9,535 a year do not represent value for money.

A BBC South East article focuses on the current struggles at Canterbury Christ Church University and the University of Kent, with the vice chancellor of Canterbury Christ Church stating that “the funding model for higher education is not working”, and calling for the government to increase tuition fees in line with inflation. 

But what alternatives could there be?

London Economics was commissioned by the National Union of Students and University of the Arts London to model the costs of the existing undergraduate higher education fees and funding regime, and an alternative funding system proposed by the NUS consisting of the reintroduction of maintenance grants for the least well-off students, combined with a “stepped repayment” system. The modelling found that the alternative system had “almost identical Exchequer costs to the current system but allowed for greater levels of maintenance support for the poorest students, whilst making the repayment of student loans more progressive”.

Meanwhile, HEPI has published a paper looking at whether now is the time to consider a graduate levy on employers to help pay for higher education, arguing that the “the current situation is no longer tenable.” Professor David Phoenix, Vice-Chancellor of London South Bank University, draws on “lessons learnt from government initiatives of the last 60 years and builds on recent Government proposals to make a series of recommendations on how employer involvement in the tertiary skills system could be increased”. The report argues that “the most equitable way of determining an appropriate level of employer contribution would be to have employers match fund the graduate tuition fee repayments made by their employees, with this money invested back into higher education. This would raise around £3.6 billion for higher education each year.”

However, the response given by Janet Daby, Education Minister, to a written question on H E funding doesn’t seem to entertain the idea of an alternative system - saying that the government “believes in the principle that a fee-based funding model and income-contingent student loan repayment system is the most equitable way of ensuring that individuals who have benefited directly from H E make a fair contribution towards its cost” last week.

SCOTLAND

Bookings close TODAY for the Scottish Universities Finance Conference, taking place next week at the University of Strathclyde, so book your place asap!

The Scottish Funding Council (SFC) has announced funding to support universities in setting up shared services for research and innovation. The SFC’s new R&I Shared Services Collaboration Fund will be worth up to £3 million over two years with individual awards ranging from £250,000 - £750,000. Cat Ball, Assistant Director of Research and Innovation at the SFC, discusses the fund in this Wonkhe blog, including the SFC’s role to help “catalyse activity” which is already being discussed but which could otherwise take a long time to develop, and to ‘precipitate and fund a different way of working’. The deadline for proposals is noon on Friday 29 August and the awards will be announced in early October.

Universities Scotland has submitted its views on the Tertiary Education and Training (Funding and Governance) (Scotland) Bill to the Holyrood education committee, which begins legislative scrutiny next week, and NUS Scotland and H E sector unions have submitted a joint letter to the minister about the bill.

The Scottish Government published its programme for 2025-26 yesterday – some headlines for universities are to keep university tuition free, to increase investment in SFC core research and innovation grants to more than £325 million for 2025-26, and to create a University Proof of Concept Fund focused on supporting research projects with significant economic potential to progress towards the formation of new companies by building prototypes, achieving market validation and attracting investment.

Wonkhe emails reported that the SFC’s annual report on financial sustainability for this and future years, which was due in January, will probably now appear in September, based on more current financial forecasts from universities later in the academic year.

The Independent reports that the University of Dundee has come up with a revised recovery plan that would more than halve the proposed job losses, but this will require “significant additional public funding” (on top of the already agreed £25m), and discussions are taking place with the SFC. The Scottish Education Secretary welcomed the plan, saying it “provides a sustainable platform for the institution to build on.”

WALES

Plaid Cymru’s new economic plan for Wales, aimed at stopping wealth and value leaking out of Wales, contains the commitment to “urgently” pursue a review of the H E funding system, including a “new, sustainable funding settlement for Wales’ universities”,  “reform of student finance”, a proposal to devolve Wales’ share of UKRI Funding, and the creation of a new Innovation Agency for Wales. Jim Dickinson examines the plan in this Wonkhe piece, which also reports that according to pollsters Survation, Labour’s dominance in Wales is likely to end in the 2026 Senedd election. 

FINANCIAL REPORTING

The FEHE SORP consultation closed at midday on Wednesday 30 April. A total of 30 responses were received from across the sector, including Higher and Further Education Providers, audit and accountancy firms, representative bodies and regulators. The process of reviewing the responses is now underway, with the Technical Working Group expected to report findings and recommendations to the Financial Reporting Group and publish all responses on the BUFDG website next month. A revised SORP will then go through the final stages of approval with the SORP Board and the Financial Reporting Council. The expected publication date is 1 August 2025, ahead of the effective from date of 1 January 2026. Any change to this timeline will be widely communicated.

A reminder that a series of regional workshops are taking place throughout May and June for those preparing for the new SORP, you can view the full schedule and book your place here. If you are reading the Digest hot off the press, it’s not too late to join this afternoon’s ‘Preparing for SORP’ webinar, 1-2pm. A recording of will be made available on the SORP section of the website after the event.  

TAX AND PAYROLL

A repeat of our final call for booking your place at the 2025 Tax Conference taking place in Birmingham on 11-12 June – bookings close in two days time, on Friday 9 May! Don’t forget it is CPD certified.

With HMRC issuing 26 measures to “reduce administrative burdens” last week, there is plenty to read about in the latest TaxHE here, including that the Capital Goods Scheme (CGS) threshold has been increased for the first time since it was introduced in 1990 – the threshold for a CGS item will be amended to £600,000 (from £250,000), hopefully reducing the number of CGS adjustments universities and other businesses have to undertake. In addition, the mandatory payrolling of benefits has been delayed by 12 months to April 2027. HMRC have also made some ‘adjustments’ to their Check Employment Status for Tax (CEST) tool, which went live on 30 April.

THE(£) reports that academics arguing that university global mobility policies and restrictions on working abroad are “stifling collaboration” and represent a “hostile model”.

PROCUREMENT

With the implementation of the Procurement Act 2023, contracting authorities have opportunities to buy smarter, drive innovation, and deliver better outcomes. Reflecting the key role public procurement can play in driving innovation, local growth and productivity, the Innovation Procurement Empowerment Centre (IPEC) is running an Innovation Procurement survey to identify opportunities and barriers for universities. HEPA members can assist the IPEC knowledge gathering exercise by completing the survey (takes approx. 6 minutes), which will help guide and shape how IPEC supports organisations, including universities.

Three new Public Policy Notices (PPNs) were published last week – PPN 013: Using standard contracts, PPN 020: Guidance on data protection legislation, and PPN 021: Payment spot checks in public sub-contracts.

SUSTAINABILITY

Ahead of the 2025/26 University League submissions, EAUC has worked with People and Planet to advocate for changes to bring the scoring in line with other frameworks used by universities. The key changes relate to those using the HESCET tool for supply chain emissions, Scottish universities currently using the EMR, and the removal of non-reporting penalties for institutions without student accommodation.

Public Sector Decarbonisation Scheme (PSDS) delivery data was published for phases 1 to 3c, based on self-reported data from applicants provided to DESNZ via Salix Finance.

RESEARCH FINANCE

A recent PwC report, commissioned by the Russell Group and funded by Wellcome, has highlighted QR funding as a key strength of the UK’s research eco system and warns that tying R&D funding to political missions too closely could undermine UK research excellence. The paper, titled Optimising UK R&D funding: lessons from global competitors, recommends that applied research is not prioritised at the expense of basic research and that processes and bureaucracy are streamlined to reduce inefficiency and duplication in the system as proposed in the 2022 Tickell Review. Read more on Times Higher Education(£), Wonkhe, and Research Professional(£).

MISCELLANEOUS / JOB OF THE FORTNIGHT -

There are lots of events coming up this month, including a roundtable meeting on centralising POs, an Oracle users roundtable dicussion for tax, Time to Talk Foreign Income and Gains with Deloitte, Time to Talk Certificates of Coverage with HMRC, the key workshops on the new SORP being held around the country (see the events calendar for details), and many more - we have more than 30 events this month (most of them free and online) so there's bound to be something useful to you so check the BUFDG events calendar for details.

The Strengthify 2025 Public Sector Engagement Insights Report shares insights into how embedding a strengths-based culture encourages engagement and resilience, well worth a read if you manage a team (public sector or beyond!). Strengthify are offering another opportunity to attend their H E Senior Leader Discovery workshops for free. BUFDG members (and the BUFDG team) who have attended these have found them valuable. Sessions are being held in: Edinburgh (24 June), London (30 Jun), Bristol (1 Jul), Birmingham (2 Jul), and Manchester (3 Jul). If you’re unable to attend in-person, there will be two virtual workshops, on either 1 July or 4 July. 

Our Job of the fortnight is Head of Pay and Pensions at the University of Salford, an exciting opportunity to strategically lead and develop the payroll, pensions, and travel teams. Working closely with Human Resources, this role includes responsibility for the University’s payroll system, travel policies, and providing up to date advice and expertise on legal matters relating to pensions. The deadline for applications is 14 May.

And two of our fellow associations within Professional H E Services Ltd (PHES) are currently recruiting as well: CUBO, the association for commercial and campus services professionals in higher and further education, is looking for an Admin Support Officer (closing date 12 May), and Universities HR (UHR), the professional organisation for Human Resources practitioners in universities, is looking for a Projects and Research Officer (closing date 16 May). PHES is a fantastic employer and our colleagues in these associations do great work.