Three-Quarters of Universities Could Be in Deficit by Next Year, Says Office for Students

Nearly three-quarters (72 percent) of higher education (HE) institutions could be in deficit by academic year 2025/2026 and 40 percent could have fewer than 30 days’ liquidity, the universities regulator has warned. The Office for Students (OfS) said in its report published on Friday that the sector is also facing a £3.4 billion reduction in net annual income. The forecast is an update to projections from the OfS published in May that said by 2026/2027, nearly two-thirds of HE institutions could be in deficit and many universities will need to make significant changes to their funding arrangements to avoid closure. The OfS said: “Our modelling indicates that many more providers than forecast must overcome financial challenges in the coming years....