Financial position - Birmingham and Newcastle Uni's

[Ineedacoffeenow]

My DC is trying to decide between Birmingham and Newcastle uni's. Lots of things in the mix, but I'm interested to try and understand more about their financial positions. I've read that Newcastle have announced cuts & staff have voted to strike but I know most uni's are making cuts; not just the ones that make the news. I've tried looking at their respective financial statements but I don't really have the expertise to interpret. Anyone got any insight? Its for a STEM course if that makes any difference; but not a competitive one. Thanks

All HE institutions are struggling as you say.

Applicants are understandably going to get cold feet about some institutions but I think the way some unis are hitting the press means this could then spiral. Like a run on banks.

It's very hard to know. I think strike action as an applicant would put me off but Newcastle is a wonderful city and old university. I can't see it going bust. Our VCs (different uni) take on things is that smaller institutions will end up merging if their financial position becomes untenable. With large unis, I don't know.

Our uni has done voluntary severance scheme. Lots of staff have gone but these have been highly paid management or older staff about to retire who don't do so much teaching... I actually think we are better for it. Haven't noticed a downside at our uni. Things feel a bit less top heavy.

Sorry. Not sure my musings are especially helpful. 🫣

I work at Birmingham. There's a voluntary severance scheme ongoing - but that seems to be the case everywhere. They got more than their fair share of international students for the current year, but other unis have upped the stakes for next year so who knows - they're all chasing a decreasing number of students. I wouldn't be particularly worried about Birmingham.

I would look at other criteria such as the quality and ranking of the course, pros and cons of the cities and campus, student accommodation in first year and beyond and how far they are from where you live. Go to the offer holder days if possible. Does your dc have three other offers too?

I don’t think any uni is in a good place currently.
https://qmucu.org/qmul-transformation/uk-he-shrinking/
this makes it sound worse for Newcastle, but it may just be Birmingham is one announcement behind them! I work at a voluntary severance uni (thankfully my job is safe) and we had not even a mutter that it was happening until the email came out. The union were given no notice either.

I think they will be fine at either if they are doing a traditional STEM course. For various reasons (especially the lack of demand from international students) certain other courses like modern languages are at risk. Nowhere will be shrinking their high demand courses wth a good cohort of international students. The way UK HE finance works is that home students and research make a loss and the international student income balances the books.

Almost all Universities are offering severance deals and some may have to make redundancies. DH took severance in a STEM subject just before Christmas. His friend teaches the same STEM subject at an RG university, not either you have mentioned but they will probably make redundancies next year. STEM depts may cut staff but they won’t shut the entire dept.

It does mean that they have lost a lot of experienced staff. We know 6 at 3 different institutions who have taken severance.

Hi, OP -

Newcastle is now planning strike action. The academic union UCU says the core issue is plans to pare around £20M or 300 jobs from the salary bill by any means necessary, while proceeding full steam ahead with the opening of a new campus in India.

This would affect my decision.