UK Universities Struggle Among Increasing Financial Pressures

One in five UK universities have reduced academic research activity over the past three years, finds a recent Universities UK (UUK) report. 83% of respondents said they are considering cutting other research or research and development (R&D) activity in the future. 
 
The report, drawing on survey data compiled by UUK and the Association for Research Managers and Administrators (ARMA) in the past 18 months, assesses the impact of increased financial pressures on higher education research. 
 
The “total economic impact” of university research is more than £54 billion, and the government’s recent spending review recognized that R&D is “a crucial part of the government’s ambitions for economic growth.” 
 
However, as many universities facing intensifying financial pressures, R&D activity is becoming “less financially sustainable.” This environment has resulted in a decrease in the overall number of research staff, reduced staff time for research, and a decrease in post-graduate researcher recruitment. 
 
Survey respondents reported restricting applications for certain kinds of funding, most notably charitable funders and fellowships. Most charity-funded research goes towards the life sciences, humanities and medicine. 
 
“[T]he findings in this report are a warning that really difficult decisions are being taken on the ground,” said Dan Hurley, UUK’s deputy director of policy, told the Guardian. “If we want to maintain the UK’s international competitiveness when it comes to research then we need to go further and support it.” 
 
“It is a challenging situation, and we try and stay ahead of the game,” said Imperial’s President Hugh Brady, citing the high inflation, high energy costs, and a flawed funding model. “Then, as I mentioned, we try and dissuade the government from their worst excesses.” 

Last May, the Home Office published a white paper proposing a 6% levy on international student fees, which would be “reinvested into the higher education and skills system.” This proposal would cost Imperial £22 million, on top of the increase national insurance contributions which went into effect last April and cost the university £10 million. 

Brady explained that Imperial is working on growing areas of the university and that the College is not considering redundancy schemes. 

However, other UK universities are having to consider innovative approaches. One third of ARMA One third of ARMA survey respondents reported using AI tools to increase efficiency, and last month, the universities of Kent and Greenwich announced a merger to begin in autumn 2026. 

“We are in a different place to most UK institutions, but we do have to be cautious and take a one, three, five, 10 year view of the world and try and get the [financial] balance right,” explained Brady. “That’s the challenge for us all. "