By Ifan Meredith
In their 2024/25 annual report, Cardiff University reported a £33.4m operating financial deficit which is an increase from the £31.2m deficit they faced in 2023/24.
This represents the financial pressures that universities across Wales are facing. They say that this is down to a £10.3m decrease in tuition fees income, less income from rent in students’ halls of residences and a 10.2% decrease in income from investments.
Their deficit before other gains and losses stood at £48m but as the university recorded a £24.3m surplus from redundancies, this was not enough to combat the worsening deficit the university faces.
According to a Cardiff University spokesperson, “a deficit was forecast and Council allowed us to budget for this third consecutive year of deficit.” As they defended the recent ‘Our Academic Futures’ programme, they said “had we not taken the action we did over the year, the deficit would have been significantly higher (around £65m).”
They emphasised that “a deficit budget is not unique to Cardiff and does not mean that Cardiff is in financial difficulty” adding that “Cardiff [University] retains a strong balance sheet underpinned by significant asset values and reserves.”
Other universities in Wales also face financial uncertainty as Bangor University reported a deficit of £18.3m in 2024/25. Swansea University reported a £39.9m deficit while Aberystwyth University managed to decrease their deficit of £8.1m in 2023/24 to £2.4m in 2024/25.
As job cuts continue to be on the table at numerous universities in Wales; South Wales University, who have a campus in the Welsh capital, announced that they intend to cut 200 jobs as they react to ‘difficulties across the sector’.
The University of Wales Trinity Saint Davids (UWTSD) who have Postgraduate teaching on sites in Cardiff, Swansea and their main campus in Carmarthen, reported a deficit of £2.8m in 2024/25, down from a surplus of £32.339m the previous year.
They reported a total loss of £4.68m in their Annual Report for 2024/25. This comes despite the university bringing postgraduate teaching to an end in Wales’ oldest university in Lampeter in September of 2025 and relocating humanities subjects to Carmarthen.
Talking to Gair Rhydd, Dewi Knight, Director of PolicyWISE and former Education Advisor for the Welsh Government said: “The main issue for the financial planning of many universities across the sector is that they expected growth to continue for the long-term, and that has not proved to be the case.”
“It’s important that the leadership of our universities are willing to make the moral, as well as financial, case for any restructuring or deficit-related decisions. Reducing departments or provision may be the right call in some instances, but it can’t simply be a financial decision.”
“These must complement a wider strategy that fundamentally strengthens a university’s mission as an academic and civic institution.”
He said that funding should be specific to individual universities adding that it “must reflect – and drive – the specific strengths and missions of different institutions, ensuring each plays a different, but equal and complementary role in achieving national (and regional) goals.”
“Overall, there are many factors affecting the financial situation of universities in Wales. Many of these are external to Wales, within the responsibilities of the UK Government, and others relate to decisions being made here.”
“Across the UK, the patterns of student recruitment have changed, and we’ve seen the more selective universities become less selective. This has had a knock-on effect elsewhere in the sector, especially in Wales” adding that “international recruitment remains challenging, and at the mercy of Home Office leadership.
“That said, perhaps Welsh universities should have diversified more quickly.”
Universities continue to face significant financial uncertainty as they hunt for ways to get to grips
with the mounting deficits and a lack of funding.