Cardiff University performs strongly in cash reserves league table – so why the need for swingeing cuts?

Martin Shipton

Cardiff University appears in second place in a league table of the 24 elite Russell Group universities in terms of how long it could continue to operate with its existing cash reserves.

Its relatively strong performance has left staff wondering whether the traumatic cuts programme implemented last year was wholly justified.

In January 2025 Cardiff University began a consultation on proposals that would have seen 400 job losses and the closure of five Schools including Nursing and Music. After months of negotiations during which the University and College Union suggested using some of the university’s cash reserves to mitigate the cuts, the proposals were modified.

Now a new report by the University of East London has shown how many days different UK universities could continue to operate for, based on their available cash reserves.

The University of Nottingham had just 24 days of cash reserves at the end of 2024-25, the lowest of any Russell Group university.

At the other end of the scale, the University of Southampton had 317 days of reserves, more than 13 times Nottingham’s figure.

Cardiff University was in second place behind Southampton with 236 days of cash reserves.

The report found 39 institutions only had enough cash to cover two months of costs. Among Russell Group universities, three fell below that threshold: Nottingham, Bristol and Durham.

The findings have prompted predictions about the long-term shape of the higher education sector. Ian Koxvold, a partner with educational consultancy Cairneagle said: “The shape and size of the sector will look very different in the future. There will be a less homogeneous provider base and probably fewer universities.”

A Cardiff University academic, who spoke to Nation.Cymru on condition of anonymity, said: “Management are obsessed with league tables, and finally here’s one where they’re doing better than expected.

“The interesting thing is, though, that this flies in the face of them pleading poverty for over a year in order to justify their swingeing cuts to programmes and gutting of academic and professional services staff, which comes at the expense of teaching standards, student choice, and the student experience.

“Maybe they intend to use all this available cash for another massive pay hike for the University Executive Board.”

‘Restricted’

A Cardiff University spokesperson said: “As set out in our latest published Annual Financial Statements, Cardiff University reported £426m of cash and investments as of 31 July 2024.

“However, the majority of these funds are either restricted, required to support operational liquidity, or designated for specific purposes such as meeting our debt obligations and funding capital investment programmes that support our long-term sustainability and competitiveness. Only a relatively small proportion is available as general reserves.

“These reserves provide an essential financial safeguard and support the University’s ability to manage risk and respond to unforeseen events. It would not be responsible or sustainable to use one-off reserves to fund recurring operating costs.

“Like most universities across the UK, Cardiff is facing significant financial challenges. Years of below-inflation increases in domestic tuition fees, rising costs, and a substantial decline in international student recruitment have created structural deficits across the sector.

“The key issue is not the university’s cash balance at a single point in time, but the need to ensure that expenditure is aligned with recurring income over the long term. Continuing to spend more than we receive is not sustainable and requires action.

“Securing our financial future in the context of these challenges means taking difficult decisions now to ensure the long-term sustainability of the university. This will enable us to continue delivering excellent education and world-leading research in the best interests of our students, staff and wider communities.”