Liquidity worries at three Welsh universities

Martin Shipton

Concerns have been raised about the financial health of three Welsh universities by the Welsh Government’s higher education watchdog.

Medr has named Aberystwyth University, Bangor University and University of Wales Trinity St David as “comparatively fragile”.

A crucial table in the report measures the “liquidity days” of the universities in Wales. Liquidity days measure how long a university could keep operating using available cash / resources if income stopped or was sharply reduced.

The measure is regarded as a key indicator of financial health, especially in terms of short-term survival and flexibility, However, it should not be regarded as a literal “closure countdown clock”.

The Medr table says Aberystwyth University has 32 liquidity days, while Trinity St David has 34 and Bangor 37.

Liquidity of more than 200 days is seen as very strong, 100-200 days is reasonably stable, 60-100 days indicates some pressure, below 60 days is concerning and below 30 days is a serious risk.

Low liquidity suggests that a university has less ability to absorb shocks, and is more vulnerable to falling student numbers, rising staff costs, pension increases and delayed funding.

A Welsh academic source who did not wish to be identified told Nation.Cymru: “I have a real concern that the Welsh Labour Government has left Welsh universities in an increasingly fragile financial position and that this is growing sharply. Recent figures on university liquidity demonstrate that several Welsh institutions now possess only a limited number of days of available cash reserves, leaving them highly vulnerable to financial shocks, falling student recruitment, rising staff and pension costs, and wider economic pressures.

“Universities are vital civic institutions that support local economies, research, social mobility, and cultural life across Wales. Allowing financial pressures to deepen risks course closures, job losses, reduced student provision, and long-term damage to Wales’s international educational reputation. There is an urgent need for a coherent higher education funding strategy that provides stability, protects students and staff, and ensures Welsh universities remain sustainable and competitive for the future.”

‘Highly challenging’

A spokesperson for Bangor University said: “Universities across Wales and the UK are operating in a highly challenging financial environment. Last year, Bangor University took steps to respond to those pressures, including organisational change. We remain focused on careful financial management and on improving our financial position over the long term, working closely with our governing body and regulator to support ongoing financial stability and sustainability.”

A spokesperson for the University of Wales Trinity Saint David (UWTSD) said: “UWTSD is not immune to the well‑reported challenges facing the UK higher education sector. While we reported a small operating surplus in the last financial year, we recognise the importance of remaining vigilant and responsible in the current environment.

“Our income projections are currently on track, and we continue to monitor performance closely. We remain focused on our strategic priority to support students and deliver high‑quality education, while continuing to pursue sustainable growth.”

Liquidity

An Aberystwyth University spokesperson said: “Despite the well-publicised financial challenges that continue to affect the entire higher education sector, we have taken important steps in the right direction, with our liquidity position also on an improving trajectory. Our latest annual report demonstrates progress made on our financial plans and how the University is responding positively to ongoing pressures within the sector.”

The spokesperson pointed out that Aberystwyth University’s operational, underlying financial deficit was reduced from £8.1m in 2023/24 to £2.4m in 2024/25.