Financial challenges response - briefing video

Proposed measures being considered to address increased external financial pressures were outlined by the Vice-Chancellor in the latest all-staff session.

The briefing by Professor Robert Van de Noort on Wednesday 29 March covered how ongoing challenges caused by high inflation, increased energy prices, the war in Ukraine and other global events mean the University is facing a larger-than-expected deficit.

Professor Van de Noort began the session by confirming our continued commitment to our strategy. He acknowledged that the challenging external factors we face do mean though that we may need to rethink our approach to implementation.

He also acknowledged that the message he had to deliver, particularly around cost-savings, was ‘not an easy one’, but emphasised his commitment to being open and transparent on the matter.

Thank you to all colleagues who posted questions and suggestions in the Q&A during the session. Responses to many of these questions have been published in this Staff Portal article. 

Reducing our deficit

Professor Van de Noort urged colleagues to work together to find solutions and added that the local University and College Union (UCU) branch and the Staff Forum would be consulted with during the process.

He said the 10% inflation rise seen during the past 12 months has added around £30m to the University’s annual costs, with sources of income such as tuition fees remaining static.

As outlined in the Vice-Chancellor’s email update to colleagues this week, the University of Reading is in a comparatively fortunate position compared to other UK universities due to our financial reserves. This means Council has been able to approve the University running a deficit of £30.7m in 2023/24 to avoid immediate cost savings that would compromise growth, reputation and sustainability.

Professor Van de Noort explained that immediate measures such as carefully monitoring recruitment decisions and longer-term actions such as growing student numbers should allow the University to reduce its deficit and return to a surplus in the coming years.

Members of the University Executive Board (UEB) have begun to scope a variety of options to reduce costs to be presented to Council at the next meeting in July. They will be working with relevant colleagues, including subject matter experts, in Schools and Functions to support this work.

Colleagues will be kept updated as plans develop.

Colleague engagement

The Vice-Chancellor was grateful to see so much engagement in this week’s session and has emphasised the importance of keeping colleagues an active part of the discussion.

Colleagues are encouraged to speak to their line managers or Heads of School/Function about any concerns or efficiency opportunities they can identify, in order for them to be reported in to UEB.

VC surgeries are also an opportunity to bring ideas to the Vice-Chancellor, and colleagues can book an appointment at one of the forthcoming sessions listed on the Staff Portal.

Colleagues can also email vc@reading.ac.uk with suggestions.