English Universities Face £6.4bn Funding Gap, New Analysis Reveals

A new analysis by Universities UK highlights a major concern. It shows that English universities funding has dropped by £6.4bn a year compared to a decade ago. The gap continues to grow as inflation rises, and institutions feel the pressure.
The findings worry many higher education leaders. They warn that the current model no longer supports long-term growth. As a result, universities struggle to deliver the learning experience students expect.

Growing Financial Pressure

According to Joanna Burton, Head of Policy (Higher Education) at the Russell Group, universities now receive far less in real terms than they did ten years ago. She explains that the recent increase in tuition fees helps a little. However, it does not solve the deeper structural issues. Many institutions still face rising costs, limited resources, and higher demand.
In addition, Burton notes that inflation continues to erode teaching budgets. Many campuses already operate with tight margins. Therefore, continued underfunding threatens future investment in staff, facilities, and student support.

Call for Government Action

With the Budget approaching, sector leaders want the government to act. They urge officials to rethink the proposed international student levy. They believe the levy would work like a tax on universities and reduce funds meant for teaching, research, and community programmes.
Burton also points to the upcoming Strategic Priorities Grant review. She says it offers a chance to rebuild the system. A fair and modern funding model, she argues, will help universities train the skilled workforce the UK needs.