BUFDG Digest 5 November

BUFDG

The Education Select Committee heard oral evidence for its inquiry into 'Higher Education and Funding: Threat of Insolvency and International Students' on 21 October. Following on from BUFDG's written evidence, we are grateful to Carol Prokopyszyn, CFO from the University of Manchester, for representing BUFDG members and giving oral evidence to the committee. You can now read the transcript of the hearing or watch it back on Parliament TV.

This year’s Management Accountants’ Summit will be held on 19, 20, 25, and 26 November, splitting the programme across two weeks and featuring plenaries, workshops, and networking opportunities relevant to a wider audience. You can find out more about the programme and book your place here, and there is a discount for multiple delegates from the same HEP.

Our next Demystifying Finance and Budgeting in the H E Sector takes place on the 1 and 8 December, and is a useful introduction for non-finance budget holders who want to know more about finance in higher education.

It’s the last chance to join a facilitated Introduction to TRAC course before the next TRAC return. Taking place across three weeks starting with an introductory session on Monday 24 November, the course is a combination of self-directed online learning supplemented with live-online workshops on 28 November, 5 and 12 December, allowing delegates to embed their learning with real time application to their own TRAC submissions.

SECTOR 

In the wake of the long-awaited Post-16 Education skills white paper, the Department for Education has set out their plans for a school curriculum reform, alongside an underpinning report from the Curriculum and Assessment review that was commissioned earlier this year. Wonkhe explores what the plans, expected to be implemented by September 2028, might mean for Higher Education Providers (HEPs).

Business and higher education leaders have reacted to the white paper’s inclusion of proposals for a 6% levy on overseas student tuition fees with concerns it will undermine the benefits of the tuition fee increase in England and increase financial pressures on the sector overall. The Times reported on a letter from The Confederation of British Industry and Universities UK to the Chancellor, warning the plan would undermine the government’s efforts to boost economic growth, skills and productivity, and there was similar coverage across the Telegraph (£), the BBC, the Guardian, and the Financial Times (£).

The certainty provided by the Government’s commitment on tuition fee increases was defended in a debate on Post-16 Education and Skills Strategy, held on 22 October 2025, where it was confirmed that more details on the design of the international student levy will be announced as part of the Autumn Budget.

A letter from the Secretary of State for Work and Pensions to the joint chief executives of Skills England has highlighted the agency’s vital role in shaping the skills system. While higher education is not mentioned, the emphasis on outcomes, progression, and funding levers may signal future shifts in expectations around employability, regional impact, and funding strategy. 

The Office for Students (OfS) has updated its guide on protecting students when providers are at risk of closing, which outlines the regulator’s role, sets expectations for providers, and signposts to further resources. The guidance makes clear that financial sustainability and avoiding closure remain the responsibility of individual institutions. This Wonkhe blog by Jamie Warner, Head of Finance at Goldsmiths, University of London, explores the potential domino effect of institutional failure(s).

Advance HE has published a new insight report Securing educational excellence in higher education at a time of change, in partnership with Wonkhe, exploring how institutions can ensure educational excellence during times of change.

SCOTLAND

A letter from the Scottish Minister for Higher and Further Education, Ben Macpherson, to the Education, Children and Young People Committee has outlined key priorities and pressures ahead of the 2025-26 budget, reaffirming the Scottish Government’s commitment to supporting the sustainability of further and higher education. The letter included a specific reference to the University of Dundee recovery plan, ahead of the committee hearing further evidence from the interim leadership team on 29 October. This follows three previous oral evidence meetings in March and June of this year.

The Scottish Funding Council (SFC) published a new Outcomes Framework and Assurance Model, setting out how the SFC will monitor and engage with universities. The guidance should be considered in conjunction with the Expectations of Good Governance released by the SFC in September 2025, and has been written in the context of increasing risk to institutions’ financial health and the findings of the recent Gillies Report on the University of Dundee.

A report from the British Council and Universities Scotland highlights Scotland’s distinctive strengths in global higher education collaboration, and five key assets that underpin Scotland’s appeal for international partnerships.

WALES

The Welsh Government’s detailed draft budget for 2026- 27 was published on 3 November, with spending totalling £27.13bn. A debate on the draft budget is scheduled on 16 December, and a Final Budget is expected to be published on 20 January 2026, with a vote on the Final Budget Motion on 27 January 2026. The publication coincided with a written statement from Vikki Howells, Minister for Further and Higher Education, acknowledging the ongoing financial pressures facing the Welsh higher education sector, and confirming plans to raise the cap on university tuition fees for the academic years 2026-27 and 2027-28, in line with England.

Medr published degree apprenticeship funding allocations for the 2025-26 academic year, confirming funding priorities and a breakdown of the £9.4 million available across Welsh universities. Universities Wales shared its response to Medr’s consultation on the Apprenticeship Programme, noting exclusion from the pre-consultation stakeholder engagement process was unsatisfactory, universities are critical to the higher-level skills pipeline in Wales, and describing the current system as broken.

Medr has launched a consultation seeking views on the new regulatory system for tertiary education and training providers in Wales, due for implementation in 2026. The closing date is 17 December 2025. Wonkhe’s Jim Dickinson asks whether regulation can cope with a unified tertiary system in Wales.

TAX AND PAYROLL

A new report, written by Vialto Partners, on the extent to which UK universities were required to comply with the Posted Worker Directives in 12 key EU member states has been published, and will form part of the discussions at the Vialto roundtables and global mobility surgeries throughout November. Check out the latest TaxHE for dates and booking links, plus dates for your diary into 2026, and all the latest tax news.  

A 6.7% increase to the Real Living Wage has been announced (6.9% for London), boosting pay for Living Wage Employees. In sector terms, Wonkhe reported earlier this year that 88% of UK universities pay the ‘voluntary living wage’ and over 80 institutions are accredited with the Living Wage Foundation.

If you missed PEG (Payroll & Employment tax Group), you can find the recording and slides on the website now, and catch up on National Insurance changes for globally mobile employees, preparations for new umbrella company draft legislation that goes live in April 2026, termination payments latest, a likely increase to National Minimum Wage, and budget predictions.

Following the Autumn Budget statement on Wednesday 26 November, Julia and Andrea will host a BUFDGET member-only round table on Tuesday 3 December (9:30-10:30am, online) including a short presentation on tax changes that are relevant to the H E sector, and plenty of time for discussion. Please note that if there are no significant tax changes for the sector in the Autumn Statement, this event will be cancelled.

PENSIONS

The latest BUFDG pensions newsletter has been published, and includes updates from the USS institutions meeting, details of LGPS consultations, confirmation that the Normal Minimum Pension Age for TPS will increase from 55 to 57 for members who joined the scheme on or after 4 November 2021, and a reminder that there is no USS deficit modeller this year alongside an explanation of changes to 2024 mortality figures.

PROCUREMENT

If you are a Contracting Authority university and would like to hear from a panel of universities who are not a Contracting Authority, this panel-led discussion on Tuesday 18 November (2-3.30pm, online) will be a useful opportunity to explore the risks, benefits and key considerations. Register to attend here.  

COUNTER FRAUD

On Tuesday 11 November, 11am-12pm, BUFDG will host its first ever Counter Fraud Forum, a space for members to discuss current trends, share best practice and network with colleagues working in the counter-fraud space across the sector.

FINANCIAL REPORTING / SORP

The revised Statement of Recommended Practice for Further and Higher Education (FEHE SORP) has now been published by Universities UK, following approval by the Financial Reporting Council. The FEHE SORP 2026 provides a refreshed framework for consistent and transparent financial reporting across the sector for financial periods beginning on or after 1 January 2026, and marks the culmination of a collaborative, cross-sector development project.

Visit BUFDG's SORP Knowledge Hub for links to download the FEHE SORP 2026 and supporting materials (including model financial statements, transition arrangements, and additional guidance documents) from the Universities UK website, alongside information and resources to support those involved in implementation.

New guidance on the tax implications of the new SORP, co-authored by Big for Tax, has been published, providing an overview of recent accounting changes to help those responsible for VAT and Corporation Tax assess potential impacts on their organisation. Those wishing to explore this topic in more detail can attend a Time to Talk ‘Tax Implications of the new FEHE SORP ‘ with Harriet Latham and Kerry Sykes (Big for Tax) on 16 December (10.30am-12pm, online).

BUFDG members involved in preparations for the changes can register for the next SORP Implementation Forum on Tuesday 11 Nov (11am-1pm online) and the following discussion on Tuesday 20 January 2026 (2-4pm online).

AUDE has published a reminder of the importance of Collaboration between estates and finance to understand the changes, and the organisational impact. As some of the key changes arising from FRS 102 relate to leases and as a result, those implementing the new SORP requirements will need a complete and up-to-date register of leases, including terms and service components and open dialogue between estates and finance teams will be essential. BUFDG is hosting a showcase for potential lease management solutions for those considering FRS 102 requirements on Tuesday 18 November (3-4.30pm, online), featuring short demonstrations (including one Excel based solution), and details on how to follow up directly with queries and technical questions.

RESEARCH AND INNOVATION

The Department for Science, Innovation and Technology has published Research and Development budget allocations until 2029/30. The announcement confirmed that UKRI’s funding will rise to nearly £10 billion per annum by the end of the period, though the finer details won’t be confirmed until December, and included provisions for the successor to Horizon Europe. UKRI also published an update on Research England and the Office for Students's joint programme Higher Education Innovation Funding (HEIF) policies and priorities until 2031.

In response to the recent white paper, Wonkhe explores why changing research funding may not be enough to bring about sector specialisation.  

The new ResearchPlus mission group, the collective voice of ten UK-based, research-focused universities, has formally launched with a parliamentary event and new website. The group aims to strengthen the UK’s research and innovation system, and offer a complementary voice in the national research and innovation landscape.

UKRI has opened its External Perceptions Survey which provides valuable insights to help meet stakeholder needs. UKRI is encouraging as many people as possible to take part, whichever council or part of UKRI they interact with the most.  

SUSTAINABILITY

The UK Government’s Carbon Budget and Growth Delivery Plan has been published, setting out how the UK will meet carbon targets while driving clean energy investment and job creation. There’s no change on the June announcement that there will be no further investment for the Public Sector Decarbonisation Scheme, and it’s important to note that some proposals and policies depend on funding decisions at future Spending Reviews.

The Department for Energy Security and Net Zero has announced Professor Emily Shuckburgh, Director of Cambridge Zero at the University of Cambridge, as the new Chief Scientific Adviser (CSA), a role that helps shape UK energy and climate policy using scientific evidence.

COP 30 will take place in Brazil between 10 and 21 November 2025. To mark Education Day on Wednesday 12 November, EAUC (the alliance for sustainability leadership in education) and the International Universities Climate Alliance (IUCA) are co-hosting a free webinar showcasing the net-zero journeys of universities leading the transition.

Accounting for Sustainability (A4S) is hosting it’s annual summit 1-4 December. It’s completely free and online, and is to equip senior finance professionals with ways to advance net zero, nature positive and just transition strategies in the face of a shifting global landscape. Some BUFDG colleagues have been on the A4S programme and this is a valuable development opportunity.

For those still utilising the Cost of Net Zero Calculator Tool to model net zero plans, a reminder that the underlying datasets are now outdated following updates to the UK Climate Change Committee’s ‘7th Carbon Budget’ and the National Energy System Operator’s ‘Future Energy Scenarios 2025’ earlier this year. However, as these changes do not radically alter the analysis of future trajectories, the existing tool can still be used to project high-level decarbonisation trajectories and cost estimations from 2022 and onwards, using 2021 emissions data as a baseline. It will remain available for download until summer 2026, but no future updates to the underlying figures are planned, and technical support from Energise has ceased.

INVESTMENT

The first two parts in a new, bite-sized, pre-recorded webinar series delivered by Barnett Waddingham are now available. These videos are tailored for those working in higher education finance looking to build a foundational understanding of investment concepts in a university context. Part one covers the basics of equities, including where returns come from, risk and liquidity, different investment approaches, and where you might see them in investment portfolios. Part two considers equities in more detail, including climate tilts, currency hedging, trends, and regional weighting. Future topics will include fixed income, and alternatives.

MISCELLANEOUS

A new report highlights the urgent need for Artificial Intelligence (AI) skills across all sectors to ensure organisations remain competitive and inclusive, and introduces practical tools such as an AI Skills Framework and Employer Adoption Checklist to guide training and implementation. BUFDG is interested to hear of any examples in the sector where AI tools are saving time, streamlining  processes, improving decision-making, and saving money across finance teams and processes; email Joni if you have any you’d like to share.

JOB(S) OF THE FORTNIGHT

With lots of interesting vacancies listed on the BUFDG jobs page we struggled to pick this time around, so here’s three! First up is at the University of Wolverhampton, which is seeking a “highly skilled Tax Manager" to join the Finance team and “take the lead on developing and implementing a comprehensive tax strategy for the University and its subsidiaries”. The closing date is 23 November 2025.

Other roles include a Deputy Treasury Manager to take an active role in the preparation, execution and recording of deals relating to Treasury Instruments, long-term debt arrangements and foreign currency trades at the University of Edinburgh (closes 27 November), and Credit Controller at Anglia Ruskin University (closes 22 November), suited to a meticulous Credit Controller who can help to maintain the University’s financial sustainability by managing student and commercial debtor accounts, ensuring the prompt collection of tuition fees, and safeguarding the accuracy of financial records.