Coventry University confident in cost-saving plans despite £59 million deficit

Coventry University has announced a £59 million deficit for the year 2024/25 through the institution’s Annual Report and Financial Statements, but maintains confidence that they will cut costs.

The report attributes this deficit to a drop in income from tuition fees and employment contracts, down to £303.8 million income in 2024/25 from £334.8 million in 2023/24.

According to the financial statements, the decline in tuition fee income was caused by below-target enrolment numbers in September 2024.

The report further claims that significantly higher than expected enrolment numbers in January and May 2025 helped reduce the impact of September 2024.

The university also expressed assurance in its “very healthy” cash balances and assets, leading it to predict a much stronger performance in 2025/26

However, the income from these enrolments is deferred to 2025/26, while large enrolment numbers resulted in increased recruitment agency fees that exacerbated the 2024/25 deficit.

Deferred income has increased by £34.2 million to £81.5 million, largely due to the May 2025 enrolments, and cash outflow was lower than had been forecast.

Coventry University remains confident in its accounts, stating that the deferred income from the January and May 2025 enrolments combined with cost-saving plans will result in significantly increased income for the 2025/26 year.

The university also expressed assurance in its “very healthy” cash balances and assets, leading it to predict a much stronger performance in 2025/26.

Coventry University have also made a commitment to cutting costs, of which approximately 50% is constituted by staff costs. They announced £14.5 million reduction in staff costs as a result of reorganisations aiming to reduce spending.

The Board continues to engage actively and is supportive of the efforts of all staff on a day-to-day basis

Coventry University spokesperson

However, drastic cuts in staff costs risk Union and student backlash.

In December 2024, after Coventry planned to make 92 academics redundant and transfer others to a subsidiary company, Union members threatened strikes and called for the resignation of the university’s vice-chancellor from his government position to better focus on the university in the midst of its deficit crisis.

In its financial comments, the university added the assurance that “The Board continues to engage actively and is supportive of the efforts of all staff on a day-to-day basis”.