As the threat of industrial action looms, Newcastle University bosses have agreed to a further £30m in cuts and cannot rule out compulsory job losses.
Following Tuesday’s University Council, bosses approved a two-year plan to balance the books. According to internal communications seen by the Local Democracy Reporting Service, these plans include slashing the institution’s salary budget by £20m and cutting “non-pay budgets” by £10m from 2025/26.
However, last year the University also announced it had to find £15m in mitigations and a £20m in-year adjustments, prompting promotion freezes, travel restrictions, and a review into the institution’s buildings programme.
According to the University and College Union (UCU), the new five per cent cut in the salary budget is the equivalent of 300 full-time equivalent jobs. Last year the University opened a voluntary severance scheme for academics, however this has now been re-opened to all campus employees.
A Newcastle University spokesperson said: “We are not immune to the challenges currently affecting the UK higher education sector and like many universities, we have implemented a range of cost-saving measures, to ensure we remain in a sound financial position.
“In addition to further reductions in non-pay budgets, we are aiming to reduce our staff costs by £20m, or 5% of our total pay budget. Consequently, the University is reopening a Voluntary Severance Scheme for all staff. We cannot rule out the possibility of compulsory redundancies, but this would be as a last resort. In case this is needed, we are beginning a process of collective consultation with our trade unions.
“We are committed to supporting our colleagues throughout this challenging time and we are being as open and transparent as possible.
“These measures will strengthen our position and enable us to continue delivering world-class education and research for the benefit of our region and beyond.”
The fresh budget slashes come just days after the UCU launched a ballot for its Newcastle University members, encouraging academic staff to vote for strike action on the basis of Newcastle University’s previous attempts to plug a £35m shortfall.
The original shortfall was attributed to a nationwide decline in the number of international students.
Professor Matt Perry, Newcastle University UCU chair said: “This is what we have been predicting since September, whcih is why we launched a ballot for industrial action expecting this to come.
“We believe it is important to resist the cuts in Higher Education. It is happening across the sector with devastating consequences for the futures of students, the regional economies, and the careers of staff. The North East needs its universities.”
The UCU has also previously called on the Government to overhaul how Higher Education is funded, branding the model “unsustainable”. Numerous Universities across the region are also suffering from financial difficulties, including Sunderland, where it has been reported around one in 10 members of staff are at risk.
