Lancaster University on track to break even despite tough financial year

The university had initially planned for a deficit figure of £17m as it fought to overcome the challenges it faced this year.

However, bosses say they now hope to be in a much better position due to putting various measures in place - including the use of the government furlough scheme and putting planned building work on hold.

More students were also recruited for the current academic year than had been planned for.

An online public consultation event on the university's strategy held last week heard that the university had expected to lose £17m because of the pandemic and economic crisis.

New Vice-Chancellor Prof Andy Schofield - who is also part of a ministerial task force to identify how Lancashire can build back after Covid - said that most years the university breaks even.

A university spokesman said this week: "We set a figure of £17m deficit as our expected budget scenario for 2020. In response to that we have worked very hard to recruit more students than we initially planned for and also made savings including pausing some capital building projects and were helped by staff taking voluntary measures, such as furloughing.

"While there remain considerable uncertainties, our position has improved compared to that start-point budget.

"While this will always be a difficult year for the university we anticipate ending at or close to a break even position, due to the measures we are taking."

Also in the online event, Prof Dame Sue Black, Pro Vice-Chancellor for Engagement, asked whether there should be more university presence in the city and more city presence on campus.

The university, which has signed the Civic Universities Agreement to encourage civic responsibility and community engagement, was urged to contribute towards the renovation of Morecambe and boost its West End.

Eden Project North in Morecambe Bay, the Health Innovation Campus at Bailrigg and sustainability are among the university's current priorities.

At present it has 15,725 students in the UK and 3,500 staff.

Prof Schofield, previously Pro Vice-Chancellor of Birmingham University, started at Lancaster in May while former politician Alistair Burt took over as Pro-Chancellor and chairman of the governing body in October.