Lancaster University is to potentially carry out 400 job cuts to save £30m in its next budget.
The cuts come in the wake of rising costs and decreasing international student applications.
According to the university, there is no plan to close any academic departments, and it is hoped that staff numbers can be reduced through a voluntary severance scheme.
There have been wider national concerns over the financial stability of UK universities, as many have made drastic cuts to ensure their own survival. These concerns spurred an announcement from Education Secretary Bridget Philipson, in which tuition fees in England were increased from £9,250 per year to £9,535, marking the first rise in eight years.
The university employs around 1,300 academic staff and 1,700 administrative staff, with it also hosting around 10,000 students from the UK and EU and a further 3,000 from overseas.
Regarding current budget cuts, a university spokesperson said it had “achieved significant savings on non-payroll and through a voluntary severance scheme this year”.
Yet the spokesperson further added: “Unfortunately our financial projections show that payroll savings of about £30m are required over the next academic year to ensure our ongoing financial sustainability.”
Regarding the nature of job cuts, the university spokesperson commented: “Our preference has always been to achieve these changes through voluntary means wherever possible. However we can’t rule out the possibility of compulsory redundancies as a last resort.”
Local councillors from Lancaster City Council highlighted the impact the cuts could have on students, staff, and the local economy.
Labour Councillor Sandra Thornberry told the BBC: “The university is a major employer and how it works is very important for the area, for students, for staff, and local businesses.”
When contacted for comment Lancaster University said: “Lancaster University has a proud record of excellence in both teaching and research however it has not been immune to sector-wide financial pressures including increased operating costs and declining international student numbers.We have achieved significant savings on non-payroll and through a voluntary severance scheme this year, but unfortunately our financial projections show that payroll savings of about £30m are required over the next academic year to ensure our ongoing financial sustainability.
“With the full support of Council, the University Executive Board has proposed a plan to ensure our future size and shape is sustainable, while also enabling the university to continue to thrive. The proposal is beginning to be shared with our staff, consulting widely with the recognised trade unions who play a welcome part in our processes. We are not planning to reduce payroll costs through the closure of academic departments, and proposed savings have been identified to achieve strategic efficiencies which will be shared across all academic departments and professional services.
Regarding if the job cuts would be voluntary, the university explained that this would be preferential, but noted “we can’t rule out the possibility of compulsory redundancies as a last resort”.
It also stated that the university is in a better financial position that others “which has bought us time to work through strategic options, which will ensure that research and the student experience is prioritised and protected”.
The university also added that it understands that this is a “worrying time for our community” but that there is support available for those with concerns.
Featured image via Lancaster University
