BUFDG Digest 4 November

BUFDG

With BUFDG’s annual, free Finance Festival extravaganza just 11 days away, this is our last chance to remind you to register! Get your ticket now (it only takes 2 minutes) and you’ll be joining 1,300 colleagues across the sector, taking your pick of 28 sessions across the three days, with most being run by universities finance teams who will be sharing their stories and expertise. Oh, and it’s CPD certified!

Beyond that, our next Timeto Talk Income Collection takes place on the 26 Nov. There will be lots to talking about following the LLE update and related Finance Festival sessions, so please do book on.

BU(F)DGET

The IFS succinctly describes the Budget as "a raft of fiddly measures but very little that will move the dial on growth". The IFS reaction goes on to say that the "hodgepodge of tax increases and cuts will further complicate the tax system; in most cases, it is hard to see a clear economic rationale". There was nothing in the Budget to help graduates with costly Plan 2 student loans, despite the campaigning over the past few months, including this recent letter from 130 MPs/peers, and no new maintenance support for students.

Jules and Andrea were typically prompt and thorough in summarising all the key HE points, with a particular focus on tax and employment, and there are a lot! The team at Wonkhe can also be replied on for an excellent and slightly broader summary, and then there’s a take from University of Brighton’s Jamie Warner for those with no more than 90 seconds of their life to spare.

Of most interest / concern is probably the news that despite the sector’s best lobbying efforts, the International Student Levy was confirmed with an updated impact assessment issued, showing an increase in the expected net cost to the H E sector - being £280m in 2028/29 and rising to £350m then £380m in the following two years. And of course those figures are at a sector level, whereas the document also reveals the strong differences in the modelling for different 'tiers' of institution.

Beyond that, there are perhaps some snippets of good news for the H E sector, including mentions of  universities working with "local leaders" and businesses in relation to fiscal devolution, as part of "the biggest transfer of power and resources out of Whitehall in a generation" with income tax growth being shared to mayoral regions from April 2028. And the graduate visa will be extended from 18 months to two years for "high compliance" providers whose graduates achieve "strong labour market outcomes".

SECTOR

If you ever need well-written comms to explain to colleagues across the university (or beyond) how university finances really work, then why not take a look at this excellent article from Sir Anthony Finkelstein, V-C of City St George’s. It is aimed at principal investigators, and full of explanations and an exhortation for PIs to become more aware of their institution's financial position and plans, and how that links to individual research and the work of academics. And of course, for anything more in-depth you can point people to BUFDG’s very own guide to Understanding University Finance.

The applicant figures for 27/28 courses with an October deadline (Oxbridge, medicine, dentistry) have been published by UCAS, showing a worrying 3% decline on the prior year. David Kernohan has a brief article in Wonkhe explaining the details, which include a 7% decline in international students.

There’s some new research from a company called IDP Education, that showed increasing competition for the ‘business’ of international students, and that visa concerns were impacting willingness to apply to universities in the UK. CEO Simon Emmett explains the results in this article. There’s lots of related news and commentary, including that 7 countries account for over 70% of all visa refusals, and the continuing drag of Home Office visa delays and refusals. There are also some well-articulated calls for the UK to make more of a rare, successful export industry. Also, there’s the possibility of EU students returning to UK (English?!) shores on home-student fees.

A couple of merger updates. Cranfield and Kings are definitely going to tie the knot, and will see Cranfield reverting to its original name – the Cranfield Institute of Technology. And UCFB will become a college of BIMM University, as part of a new ‘long-term partnership’.

ENGLAND

Thank you to the 74 university/HEI CFOs and FDs who contributed to the updated work of the Innovation and Research Caucus on the implications of the financial health of universities in England. The Wave 2 report has now been published, showing that 72 of the 74 respondents view the current financial situation as a ‘systematic and longer-term issue’ rather than a ‘short-term challenge’, and 62% of respondents regard the support they had received from governmental and regional stakeholders as ‘not at all effective’ or ‘not effective’. The report covers financial strategy and operating plans and looks at the impacts on various different areas of HEIs' operations.

OfS has published a second consultation on how the next TEF will work, including a headline tweak that threatens recruitment limits on ‘low performing’ providers. The consultation open until Jan 27. Wonkhe editor Debbie McVitty outlines her thoughts in an article on the site.

The DfE have published some research on the Demand determinants and elasticities for English higher education . It finds the supply-side very difficult to predict (how the potential for increasing or decreasing fees might impact on the number of students each provider hopes/plans to recruit), but on the demand side concludes for international students that “a 10% increase in the price of HE from English providers leads to an estimated 3.2% decrease in nonEU undergraduate demand”. It does look at other student types and modes of study.

There’s a bit of LLE news, with the DfE updating communication assets for providers and preparatory guidance, and is also seeking views on how and when maintenance and tuition fee loan payments should be made.

And a final reminder that the interim Financial Return for 2026/27 needs to be completed and submitted to the OfS by 13 November.

NORTHERN IRELAND

A BBC article sheds some light on the challenges faced by colleagues at Northern Irish institutions, owing to the continued budget delay from the NI executive.

SCOTLAND

The SFC has announced five more projects that have received funding from the University Transformation Framework. £18.8 million has been awarded to "initiatives designed to strengthen skills provision, drive collaboration and support the long-term sustainability of Scotland’s tertiary education sector". Beneficiaries include the University of Aberdeen, SRUC, Heriot Watt University, the University of Stirling, the University of the Highlands and Islands, and Robert Gordon University, and the University of the West of Scotland.

WALES

Medr is seeking views on new quality performance measures that would support its assessment of providers across the Welsh tertiary education sector. The proposed indicators cover completion, progression and student outcomes, using benchmarked data to provide contextualised comparisons rather than fixed performance thresholds. Responses are invited until 9 December, with the measures expected to be introduced from the 2026-27 reporting cycle. Jim Dickinson has an explainer on Wonkhe covering what it might mean in practice.

This article in Business Live questions whether "the Welsh Government has assembled the right group of people to address the fundamental challenges facing Welsh higher education" in the panel announced to review H E in Wales. It shares concerns that the "review starts by asking how we can make the existing university system financially sustainable, rather than considering the bigger question of what kind of university system Wales needs over the next 20 years".

TAX AND PAYROLL

BUFDG has published a guidance paper that applies to cars leased to the university and onward leased to staff under salary sacrifice arrangements. Read to find out more.  

PROCUREMENT

The 2026 Budget made a number of references to procurement, which will be of interest to members. Most notably, the Budget highlighted the government’s commitment to “using public procurement to back British business”. Firstly, a new NPPS will be laid in Parliament in March 2027 that will prioritise delivery of high-quality jobs, fair pay and skills opportunities, including pathways for young people. In addition, the government will publish a new definition for a “UK supplier” in public procurement by January 2027 to help the government better understand and track UK suppliers and subcontractors across public supply chains.

Jisc have published a ‘call to suppliers’ on the ‘Governance and cost control for generative AI in education and research’. It’s an outline of how the HE sector expects to be able to purchase AI services, what it’s priorities are, and what suppliers can do to support successful adoption. If that sounds very complicated, here’s Wonkhe’s David Kernohan with an article explaining what it actually does, and why it’s all a very sensible idea.

SUPC are hosting some useful webinars in November. Using Price Indices in Contracts, delivered by the MOD takes place on the 10^th, with Financial stability, including estate optimisation, consolidating tech stacks and cost-effective cloud migration webinar on the 17^th November.

If you’re quick you can still sign up for the next TEC energy outlook webinar at 11am on the 5^th (tomorrow) on Zoom, analysing the implications from the NESO winter outlook, UK budget announcement, US midterms and geopolitical developments and their respective effects on wholesale energy prices.

Microsoft’s global announcement regarding changes to the M365 education portfolio will be shared in more detail at a Jisc and UCISA briefing on 5 November 4-5pm. The session will include a presentation by Microsoft, sector negotiations and outcomes, and a closed UCISA session which members are welcome to attend.

FINANCIAL REPORTING

The Financial Reporting Council has released a new factsheet to help those applying FRS 102 in Public Benefit Entities (PBEs). The factsheet discusses the role of Statements of Recommended Practice (SORPs), and summarises "the ways in which PBEs, including but not limited to charities, have been considered by the FRC in developing the extant UK and Ireland financial reporting standards". It outlines the newly launched International Non-Profit Standard (INPAS) but explicitly confirms it has no direct impact on UK HEPs, and that FRS 102 and the FE/HE SORP remain the sole authoritative standards.

The new lease accounting requirements under FRS 102 are fast approaching, and many institutions are beginning to consider what systems and processes will be needed to support implementation. KPMG is hosting a two Leasing Tools Fair events in Manchester (9 November), and Leeds (10 November), bringing together a range of lease accounting solution providers with demos and practical insights. A reminder there is a lease management solutions showcase webinar on the Knowledge Hub with a range of software solutions, and an accompanying short written guide.  

SUSTAINABILITY / ESTATES

EAUC has published updates to the Standardised Carbon Emissions Framework (SCEF), which helps post-16 education organisations calculate and report emissions in line with national requirements, effective practice in the education sector and global protocols. The updates include more guidance on Scope 3 emissions, including where to report digital emissions.

An Energy Systems Catapult webinar on 19 November will examine the major replacement decisions facing public sector estates, the pressures created by decarbonisation and grid constraints, and what organisations can do now to prepare for a successful transition. The webinar accompanies a new report on the challenge facing the UK's ageing CHP estate, with attendees able to put questions directly to the authors.

PENSIONS

The October Pensions Update is now available. This month's edition covers the latest developments in the USS 2026 valuation, TPS contribution changes, SAUL's strong funding position, NHS Pension Scheme administration issues, and a range of wider pensions news affecting the higher education sector. Whether you're involved in pensions, payroll, HR or finance, there's plenty to keep you informed of the issues shaping the pensions landscape.

Mercer are hosting a webinar on Tuesday 17 November looking at thesalary sacrifice changes announced in last year’s budget, which limits the amount exempt from NICs at £2,000. While not due to come into force until April 2029, there is a significant amount of prep work to be done. The webinar will be an interactive session on what the new rules mean in practice, key risks to be aware of, who is most likely to be affected, and the actions employers should consider now.

JOB OF THE FORTNIGHT

Our Jobs notification this month is to point you towards a number of vacancies at APUC, the Scottish purchasing consortia that covers further and higher education institutions in Scotland. They’re looking for a CEO, a Procurement Manager, and a Procurement Project Officer. If you have skills and experience that might match, then please do take a look.

There are lots of other vacancies listed on the BUFDG jobs pages.