University £100m cuts a shock not a surprise - MP

Coventry University will make nearly £100m savings over the next two years

Coventry University's drastic cost cutting measures are shocking but not surprising, Labour's higher education spokesperson has said.

Shadow minister Matt Western, who is also the MP for Warwick and Leamington, spoke as the university announced nearly £100m in cuts over the next two years.

An annual report said income for this financial year would be £85m less than forecast.

It means about £40m in savings will be needed in 23-24 with a further £55m expected in 24-25.

"I am shocked but I am not surprised," Mr Western said.

"There are some really strong headwinds facing the sector. Coventry is big news, but they will not be alone."

The University says it has significant reserves and assets but "difficult decisions" will have to be made

The politician said other universities had been forced to make redundnacies, with many of the problems gripping Coventry also felt by the sector more widely.

Mr Western said the UK government had sat on its hands while frozen tuition fee income for universities was reduced due to inflation.

"They could have done something on that and have failed to do it," he said.

The Department for Education says universities are independent from government, but it has provided £750m in extra funding.

Difficult decisions

The expected £85m shortfall is down to lower student intake figures in autumn 2023.

Bosses think arrival numbers will also drop in January and May 2024.

"Several factors, some beyond our control, mean we now forecast a larger deficit in this current financial year," a university spokesperson said.

"These funding issues are affecting most universities in the Midlands and England."

When asked for its message to concerned staff, the spokesperson added: "There will be some difficult decisions but we have significant reserves and assets.

"[This will] give us space to make the changes needed to build a financially sustainable future while continuing to improve services to our students and business and research partners."