BUFDG Digest 12 August

BUFDG   

This month's Shared Services Showcase features the UK Universities Purchasing Consortia (UKUPC), with colleagues from LUPC and APUC outlining how their shared procurement services operate through cost sharing groups. The session explores the benefits of the model, including access to specialist expertise, cost savings, compliance support, professional development opportunities, and the practicalities of governance, confidentiality and liability management. Short on time? A new 17-minute edited highlights version focuses on LUPC's Ensemble Purchasing service, offering a concise introduction for institutions looking to strengthen procurement capacity through a shared service model. With several universities already participating, it is well worth a watch for providers considering alternative approaches to procurement resourcing. 

SECTOR 

As students across England, Wales and Northern Ireland prepare for A-level results tomorrow, the Institute for Fiscal Studies has published new analysis of the long-term value of undergraduate study, using linked education and tax records for students in England. The research finds that graduates earn substantially more than non-graduates on average over their working lives, although outcomes vary significantly by subject and prior attainment. The accompanying report and podcast provide a timely contribution to the perennial "is university worth it?" debate as applicants consider their options on results day.   

Elsewhere, the wider policy landscape continues to evolve. New Prime Minister Andy Burnham has outlined plans for what he describes as "fundamental changes" to England's education system, with a stronger emphasis on technical education, work experience and preparation for employment. The government has also announced plans to devolve responsibility for 16 to 19 education and skills funding to mayors as part of a broader programme of devolution, with further details expected in an autumn white paper. 

Universities UK has published a new government engagement toolkit to help institutions navigate the changing political environment and sector commentators are beginning to assess what the Burnham premiership could mean for higher education. 

ENGLAND 

The Office for Students has confirmed its 2026-27 funding decisions and provider allocations, alongside an updated Guide to Funding explaining how recurrent grant funding will be distributed across the sector this year, and come alongside a reminder that applications for the OfS's 2026-27 capital funding programme must be submitted by 4 September 2026. Alongside the funding announcements, the OfS has published updated guidance on Annual Financial Returns and confirmed the rules for its new freedom of speech complaints scheme, which opens on 1 September. Providers may also wish to note the development of Regional access partnerships, a new element of the OfS' work to improve equality of opportunity and participation across England.  

The run of updates to the lifelong learning entitlement (LLE) GOV.UK pages continues, with newly published guidance for providers providing information on course design, modular delivery, student finance, and system readiness published alongside updates to the section on secondary legislation.  

Following the coverage in the last Digest of DfE’s International student levy: government response, BUILA has expressed disappointment that the levy will proceed broadly as originally proposed despite concerns raised by the sector. While welcoming commitments to trial calculations and continued engagement on implementation, BUILA's response argues that the levy represents a significant financial risk for universities and challenges assumptions that the additional cost can simply be passed on to international students. The association has also called for further exemptions, including for scholarship-funded, exchange and visiting students, and says it will continue to engage with government ahead of the levy's planned introduction in August 2028. 

International recruitment and mobility remain firmly in the spotlight. Two landmark legal cases have been brought against the Home Office challenging the government's "visa brake", which has halted the issuing of study visas to nationals of Afghanistan, Cameroon, Sudan and Myanmar. At the same time, universities are being encouraged to broaden their engagement with Sub-Saharan Africa through a mix of student recruitment, transnational education and partnership activity as changing policy and compliance requirements continue to reshape international student mobility. 

Student finance also remains high on the political agenda, with the new education secretary Lucy Powell placing Plan 2 loans at the “top of her in-tray" amid ongoing media attention on the fairness and sustainability of the student loan system. 

SCOTLAND 

New UCAS data published on Qualifications Scotland Results Day shows a record 17,920 Scottish students aged 18 and under have been accepted to university or college, up 3% on last year. The proportion of the most disadvantaged Scottish 18-year-olds securing a place has also reached a record level, while overall acceptances across all ages rose to 32,370. Commenting on the figures, Wonkhe notes that "an astonishing 98 per cent of 18 year olds educated in Scotland who have accepted a higher education place via UCAS have done so at a Scottish provider" and finds that Scotland's tightly controlled student number system continues to shape admissions outcomes, with most Scottish applicants studying close to home.  

The SFC has published its 2026 Self-Evaluation and Action Plan (SEAP) thematic report, providing an overview of key issues emerging from quality assurance and enhancement activity across Scotland's universities and colleges. While focused on learning, teaching and the student experience, the report offers useful insight into institutional effectiveness, governance and continuous improvement across the tertiary sector.  

The SFC also published reporting guidance for the Knowledge Exchange and Innovation Fund (KEIF) for 2025-26, including the reporting template for Scottish universities in receipt of KEIF to complete and return anytime from 1 September 2026 to 30 November 2026 to demonstrate progress against their five-year knowledge exchange and innovation strategies, along with revised guidance on Quality for Colleges and Universities 2024-25 to 2030-31. 

WALES  

The Welsh Government has commissioned an independent review of the funding and organisation of higher education in Wales, with the aim of securing a "sustainable higher education sector and student finance system, ready to serve the needs of Wales into the 2030s and beyond". An expert panel will be appointed by September, with an initial report on funding and student support due in summer 2027 and a wider report expected “winter 2027 to 2028”. Any recommendations must be fiscally neutral, with changes to funding and student support arrangements expected to inform policy from the 2028-29 academic year. 

TAX AND PAYROLL 

We've published a new analysis of the VAT treatment of online learning across EU member states. Covering all EU countries except Bulgaria and Estonia, the report considers whether foreign universities can access local education VAT exemptions, the requirements for obtaining any available exemption, whether B2C VAT invoices are required for taxable supplies, and the extent of e-invoicing obligations. The analysis also highlights recent developments in a number of jurisdictions and provides practical guidance for institutions delivering online learning to students in the EU. 

Following the “706/2” updates published on 29 July, HMRC also published Revenue & Customs Brief 7 (2026) setting out the changes to the VAT Capital Goods Scheme following the increase in the threshold from £250,000 to £600,000. The brief confirms that items already within the scheme will remain subject to CGS adjustments until the end of their adjustment period, while buildings and land acquired, constructed or substantially altered on or after 29 July 2026 will be subject to the new threshold. It also confirms that computers and computer equipment acquired on or after 29 July 2026 are no longer within the scope of the scheme. Some uncertainty remains around transitional arrangements, members should continue to monitor further guidance from HMRC, and follow this discussion board for updates. Xeinadin will deliver a BUFDG webinar on the Capital Goods Scheme on 22 October 2026. Booking details will be available shortly.  

Julia and Andrea have been busy filling the calendar with tax events including online learning drop-ins, VAT and import/export surgeries, automation round tables, and Time to Talk sessions throughout the year. Full details will be published in the next issue of TaxHE, but in the meantime you can find all upcoming events by visiting the BUFDG events page and filtering by Tax. After the usual break in training and events over the summer, the next date in the diary is the annual training on employment status with Rebecca Seeley Harris. Covering IR35, off-payroll working and more, the session is free to BUFDG members and you can register here.  

The joint response from BUFDG and the Charity Tax Group to the HMRC consultation on the International Controlled Transactions Schedule (ICTS) and the formal BUFDG response to Requiring payment of VAT and PAYE return liabilities by Direct Debit consultation have both been submitted. Thanks to those who have contributed to shape these responses.  

TaxHE will be back on 10 September.  

PROCUREMENT  

The government has announced a new Social Value Model aimed at ensuring public spending supports British jobs, skills and opportunities across local communities. Procurement Policy Note (PPN) 026 introduces the updated model, which focuses on creating good jobs and addressing skills needs through public procurement. While the changes apply directly to central government bodies, they signal the direction of travel for public procurement policy more broadly. 

Thank you to everyone who joined our recent round table on the process of adding new suppliers to finance systems. The discussion explored current approaches, common challenges and examples of good practice from across the sector. If you were unable to attend, the notes are now available and provide a useful overview of the key themes and ideas shared by participants. Please follow this discussion board for updates.  

Jisc has published its latest licensing agreements pipeline, providing an overview of current and upcoming negotiations, renewals and agreement activity across a range of digital content and services used by UK higher education institutions. The update offers a useful forward look at areas where institutions may wish to monitor developments, engage with consultations or plan for forthcoming contract changes. 

FINANCIAL REPORTING 

A reminder for those preparing for SORP 2026 that Model Financial Statements were published on 3 November 2025, alongside the FRC approved SORP 2026 document, transition arrangements, and additional guidance. All resources can be found on the SORP Knowledge Hub, alongside webinars and practical guides.  

SORP Implementation Forums have been scheduled for 15 September, 24 November, and 27 January, and will continue as far into 2027 as our members find them useful, with thanks for our Chair Matthew Knight from the University of Surrey for his continued support. These sessions are a shorter duration than the previous format, have no formal agenda, and are a space for members to raise issues and facilitate peer discussion – please come prepared to contribute. Notes and recordings (where appropriate) from previous forums across 2025 and 2026 are available.   

RESEARCH AND INNOVATION  

Research England has published its 2026-27 formula funding allocations, with overall research funding rising to £2.2bn while knowledge exchange funding totals £309m and capital funding falls to £179m. As outlined in this Wonkhe breakdown, the allocations largely maintain existing funding methodologies, providing institutions with a degree of stability as the review of Strategic Institutional Research Funding continues. Main QR funding streams see a modest uplift, HEIF remains protected despite changes to the recipient pool and allocation caps, while formula-based capital funding reduces compared with previous years. 

The REF team has launched a sector survey, open until 4 September 2026, to gather targeted feedback on a small number of policy areas before final guidance is published this autumn. The survey focuses on issues including the draft Strategy, People and Research Environment (SPRE) criteria, arrangements for single-UoA institutions, submissions across multiple Units of Assessment, equality-related unit reductions, research income data collection, and submission requirements for Engineering. Feedback will be used to test the clarity and implementation of these proposals and inform final REF 2029 criteria. 

BUFDG extends congratulations to Grace McConnell on becoming Chair of ARMA on 1 August. Having served as Chair Elect over the past year and previously led ARMA's member engagement work, Grace brings extensive experience from across higher education, the public sector and industry, and we look forward to working collaboratively with Grace and ARMA on issues affecting our communities.  

The next meeting of the Research Finance Forum will be held online on 14 October, please register to receive joining instructions and suggest topics for discussion on the day.  

A reminder that the monthly Innovate UK drop-ins culminated in July, after a six-month intensive approach to tackling some of the common compliance issues. A recording of the final session is available here, alongside notes from previous discussions. It is expected that quarterly interactions with Innovate will continue from September, more details will be announced soon.  

Wonkhe is launching a new publication, Research Agenda, which will provide full coverage of research policy, funding, science and technology. You can sign up here to be notified when it launches later this summer.  

TRAC / MANAGEMENT ACCOUNTING  

Bookings are rolling in for our annual TRAC Practitioners Conference, which takes place on Tuesday 22 and Wednesday 23 September 2026. As usual, the conference will include a mixture of plenary and breakout sessions to give delegates a thorough overview on the work of the TRAC Development Group and the latest guidance on TRAC. We will be hosting an optional ‘TRAC for Beginners’ session on Wednesday 16 September that will be particularly valuable for those attending the TRAC Practitioners Conference for the first time. 

BUFDG members with an interest in TRAC are invited to test a new “TRAC Return Companion" tool. BUFDG has not tested or validated this tool, and its circulation should not be taken as an endorsement by BUFDG or any TRAC body, but we are interested in what experienced TRAC practitioners among the BUFDG community think of the tool and whether it should be explored further.  

With the Finance Festival scheduled on 16-18 November 2026, our next dedicated online event for management accountants, finance business partners and any other members interested in this topic moves to March 2027.  As we begin planning, we'd love to hear your views on the event. Whether it's the format, topics you'd like covered, or speakers you'd like to hear from, your feedback will help shape the programme. We're also keen to hear from anyone who would like to help steer the content or even deliver a session. Please take a few minutes to complete the survey if the event is of interest or share with team members who would be interested in attending or contributing. 

SUSTAINABILITY / ESTATES  

The finalists have been announced for the Green Gown Awards 2026, showcasing exceptional sustainability initiatives from universities, colleges and other post-16 institutions across the UK and Ireland. 

Scotland's Public Sector Clean Heat Development Fund opened for applications on 7 August. The grant supports public sector organisations to bid for up to £30,000 to develop heat network and off-gas-grid clean heat projects. The closing date for applications is 9 September 2026. Projects must be completed by 31 March 2027. 

Salix are hosting a flagship Delivering Scotland’s Energy Future event on 27 October bringing together public sector organisations from across Scotland to connect, share experiences and explore how to accelerate progress towards net zero. 

INVESTMENT 

As part of the ongoing work of the Banking Engagement Forum’s (BEF) Cambridge Bond Index Project, Bloomberg and the University of Cambridge have launched the Bloomberg Cambridge University Corporate Indices (BCam Indices), a new family of investment-grade corporate bond indices designed to help investors incorporate climate considerations into fixed income portfolios. Based on the University's newly published Cambridge Framework for assessing corporate climate action, the indices exclude or underweight companies in sectors such as fossil fuel extraction, utilities, banking and insurance that are not aligned with climate transition criteria, while allowing companies to be re-included if their practices improve. The initiative is supported by new engagement resources, including a public Watch List and Priority Engagement List, aimed at helping investors drive corporate action on climate change through debt markets. The Finance for Systemic Change team is also pleased to announce the launch of important resources to support bondholder engagement. Please contact the BEF team for more information.  

BUFDG members are invited to an in-person Share Action event in London on 16 September focused on sustainability and governance in investment management. Hosted in collaboration with The Chancery Lane Project and Chapter Zero, “Embedding responsible investment across the asset manager lifecycle” will bring together asset owners to help shape a new digital tool designed to support the integration of responsible investment considerations throughout the asset manager lifecycle, from procurement and contracting through to monitoring and manager exit. The organisers are keen to hear a diverse range of perspectives and encourage participation from across the higher education sector. 

PENSIONS  

Following the recent launch the consultation for the 2026 valuation with UCEA, USS held a webinar for employers on 24 July covering an update on the current surplus, key developments since the 2023 valuation, covenant, regulatory and methodology consideration, and next steps.  

A recording of the presentation section has been made available, the Q&A was not recorded.  

Higher education pension specialists from Dalriada, Marsh - People and Investments, and Burges Salmon will host an interactive webinar on 16 September to discuss key pension scheme challenges and opportunities facing UK universities. Aimed at finance and HR professionals, pension committee members and in-house pension managers, the session will cover governance and member service issues, strategies for maximising value from pension schemes, legal considerations around benefit changes, and an open Q&A with sector experts. 

JOB OF THE FORTNIGHT 

Our Job of the Fortnight is Head of Tax at Aston University. This senior role will lead all aspects of the University's tax function, providing strategic leadership across VAT, corporate tax, employment tax and international tax matters, while supporting the delivery of the Aston 2030 Strategy. Reporting to the Executive Director of Finance, the successful candidate will play a key role in advising on major projects, managing tax risk and compliance, and building tax awareness across the institution. 

Other vacancies can be found as usual on the BUFDG jobs page.