University funding explained

University funding has received a lot of attention in recent years, with the 2012 reforms to higher education and fees across the United Kingdom. Much of the debate has focused on undergraduate fees and research grants from government - with conclusions being drawn on the finances of universities and the possible 'winners and losers'. This is only part of the story. Almost all universities that receive public funding are charities, and raise income from a wide range of sources. This publication illustrates the diversity of these sources. Any surplus income is reinvested back in to improving teaching and research, and innovating with business to support local and national growth. Without surpluses, universities would be unable to deliver the scale of investment required to meet student demands, remain internationally competitive and continue to be financially sustainable. This publication explains how universities manage their finances to support their core activities, in both the short and longer term. Finally, it sets out how universities manage risks to ensure they remain sustainable in the long term.

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