Cambridge University ran a £53 million budget deficit ‘without knowing why’

An internal memo seen by The Telegraph said: “The board sought explanations for the budget deficit beyond those applicable to all higher education institutions.

“But worryingly this has not been fully traced to its source and as a result there is no clear understanding of what happened or why.”

The university council, the institution’s main policy-making body, has already said Cambridge will cut costs by 5 per cent over the next two years.

No ‘tightening belts’

However, the review board is chaired by fellow and scholar Rob Hopwood. Murray Edwards CollegeHe said this should not involve “slicing salami and tightening belts” and called for a radical overhaul of the university’s finances.

He seemed to suggest that not doing so could mean serious cost-cutting measures in the future.

“The ongoing deficit throws into doubt some of the university’s long-term objectives, such as estates, people strategy and environmental sustainability,” the board warned.

“The university should not be considered to benefit current students and staff while depriving future generations.”

The board attributed some of the projected shortfall to a large increase in administrative staff since 2016. It was stated that the number of non-academic contracts increased by 29 percent to 5,875 during this period.

The university’s eight-member elected watchdog said this was “part of a ‘time of plenty’ culture which could result in over-expansion” but called on Cambridge to now make “difficult decisions”. .

“The scale of the operating deficit now requires meaningful action,” said the statement signed earlier this month.

“Given the immediate challenges facing the University, the board is of the view that business as usual is not a viable option… It is clear that there is an urgent need to improve planning and financial control.”