UCLan bosses prepare for the funding "challenges " facing higher education sector

UCLan's flagship Engineering Innovation Centre

In an internal memo from the senior executive team, staff at the University of Central Lancashire have been told the institution is facing challenging times and that a "forecasted deficit position" has already led to a review of this year's expenditure, although it adds that UCLan currently has a strong level of reserves and a healthy balance sheet.

It comes ahead of this week's expected Augar Report into the higher education sector, The review by Philip Augar, due out on Thursday, is expected to recommend a reduction in tuition fees.

What we know about the Augar Review

This will hit budgets as it is where universities get the bulk of their money - and the higher education sector is also preparing for a dip in undergraduate admissions caused by a low birth year.

The memo re-affirms UCLan's commitment to delivering the multi-million pound masterplan currently nearing completion, but warns: "Discussions continue to look at more efficient ways of working and how we can make improvement together.

"We are also taking the opportunity to review our future business plan ans the income and expenditure levels required to continue to deliver a sustainable long-term future for UCLan."

A spokesman for UCLan said: "At a time when the higher education sector is experiencing one of the most challenging times in its history; with all universities having to contend with the impact of Brexit, the government’s pending Augar report into a possible reduction in tuition fees and a demographic dip in 18-year-olds, all institutions are having to be more resilient than ever.

"UCLan has a strong level of reserves and balance sheet. This internal message was sent to colleagues across the university as it is important that we share the external context and challenges with all our staff as well as communicate with them how we are taking a sensible approach to reviewing our business operations to identify potential efficiencies and new income opportunities."