University should use its £500m reserves to avoid cutting 400 jobs, union says

Cardiff University should usage its reserves of much than £500m to easiness fiscal pressures amid concerns of 400 occupation losses, a national has said.

The instauration has £506m successful unrestricted reserves, which has accrued by much than 50% successful a year, according to figures seen by Newyddion S4C, which lecturers' national UCU said should beryllium partially used.

But the assemblage said the reserves was not currency that could beryllium freely utilized and teaching and probe costs were £31.2m much than income successful the 2023-24 world year.

One higher acquisition adept has called for much payer backing for universities and a rethink connected however pupil loans are repaid.

The UCU typical astatine Cardiff University, Andy Williams, said the national was present readying to ballot members connected onslaught enactment aft the consultation to chopped 400 jobs and extremity immoderate courses was announced.

"There are very, precise large currency reserves which could beryllium drawn connected to money a much cautious and gradual recovery, which doesn't destruct lives similar these cuts will," helium said.

"We're suggesting dipping into them successful a strategically informed and evidence-based way, successful bid to program a longer betterment than the assemblage seems to beryllium insisting on.

He said: "We're bemused wherefore they're pushing up with specified brutal and callous cuts erstwhile determination are different options connected the table."

According to leaked accounts, the university's consolidated nett assets accrued by 26.1% betwixt July 2023 and July 2024, to £855m.

The assemblage confirmed a fig of £506m successful "unrestricted reserves" quoted successful the papers was correct, but said it would beryllium incorrect to presume that it equated to currency that was acceptable to beryllium spent.

In a statement, the assemblage said: "Accounting surpluses bash not bespeak the underlying fiscal presumption of moving the university.

"Accounting surpluses are not the aforesaid arsenic currency that tin beryllium spent to debar the request to marque alteration successful the university.

"The assemblage faces a structural deficit. This means the revenues we make from teaching and probe bash not screen the costs of undertaking these activities.

"The costs of teaching and probe activities were £31.2m much than the income we generated.

"This is not sustainable. Like each universities whilst the assemblage does person reserves, this is not the aforesaid arsenic wealth that the assemblage tin freely spend."

In an interrogation with BBC Wales connected Tuesday, Cardiff University Vice-Chancellor Prof Wendy Larner said utilizing those reserves would not lick the existent concern facing the university.

"Reserves tin lone beryllium spent once," she said.

"If we walk reserves connected moving costs, we conscionable hold the inevitable problem."

Speaking connected BBC Radio 4 connected Friday morning, Prof Larner added Cardiff, similar different higher acquisition institutions successful the UK, were facing "really terrible fiscal headwinds".

"We are moving with our unions," she said. "None of america privation to beryllium successful this position.

"My occupation is to unafraid a palmy world aboriginal for this university, and truly unfortunately, that means making immoderate truly hard decisions."

Although Cardiff, similar galore different universities, whitethorn clasp important fiscal reserves, that is improbable to mean it america sitting connected ample amounts of currency acceptable to beryllium spent immediately, according to Nicholas Barr, prof of nationalist economics astatine London School of Economics.

Instead, the "sensible thing" for universities to bash would beryllium to person invested overmuch of their reserves "in buildings, oregon investment", helium said.

"I'm not saying that determination isn't immoderate anticipation for utilizing immoderate of the reserves, but I deliberation the statement that there's a cookware of £500m that tin conscionable beryllium utilized to plug the spread - I'm definite it's a batch much analyzable than that," said Prof Barr.

"Universities person lone constricted quality to gully income from their superior assets.

"My presumption is, if they're not investing their superior assets for the agelong term, if they're conscionable sitting connected pots of money… past they're not utilizing their assets precise well."

But the semipermanent reality, helium said, was that higher acquisition needed much payer backing and a rethink of pupil loans if existent backing gaps were to beryllium addressed.

"It's a mistake to wage for each assemblage teaching costs done tuition fees," helium said. "The archetypal happening that needs to hap is to reconstruct immoderate payer enactment for teaching.

"Now, there's nary nationalist wealth astatine the moment, but 1 mode to set the strategy is to bring backmost immoderate teaching grants, and marque loans little leaky."

Prof Barr says that could see lowering the income threshold by which graduates person to commencement repaying their pupil loans, but instrumentality a smaller percent of their wage cheques portion doing so.

"That mode loans could beryllium affordable for students, but much of the indebtedness would beryllium repaid, and that could beryllium utilized successful portion to wage for much nonstop teaching enactment for universities."

The UK authorities has been approached for comment.