Crisis-hit Cardiff 51¹ú²úÊÓƵ has recorded UK higher education¡¯s biggest operating deficit yet for 2023-24, with the total shortfall across Welsh institutions forecast to reach ?70 million.

Cardiff warned that the current higher education operating model was facing an ¡°existential crisis¡± as it posted a ?31.2 million deficit in its , days after announcing plans to axe 400 jobs and close disciplines including modern languages and nursing.

This is a deterioration from a ?12.7 million deficit posted in the 2022-23 accounts and the largest for this year recorded so far by Times Higher Education.

Cardiff¡¯s accounts say that the entire sector is at a ¡°fundamental turning point¡±, and that future UK and Welsh government policies could significantly affect its financial performance.

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According to the document, the university?faces challenges from rising costs and lower-than-expected growth in tuition fee revenue because of impacts to the international student market.

Its accounts show that it?recorded a net cash inflow from operating activities?of ?1.8 million last year, down from ?30.3 million in 2022-23.

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The institution also warns that the current model of university education is ¡°facing an existential crisis¡±.

Vice-chancellor Wendy Larner said?the forthcoming uplift in tuition fees in Wales helped a little, but that review of the graduate visa route caused ¡°uncertainty and much damage to international student recruitment¡±.

The Welsh government was facing mounting pressure to intervene in higher education finances, with a number of other institutions posting operating deficits.

Swansea 51¹ú²úÊÓƵ reported a ?15 million deficit, compared?with a ?33 million surplus in 2022-23. Despite an increase in overseas tuition fees, Swansea suffered a decline in income of ?31 million from a reduction in research income and a fall in home student numbers. It recorded a net cash outflow of ?19 million.

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Aberystwyth 51¹ú²úÊÓƵ posted an underlying operating deficit of ?8.1 million last year, on top of a ?2.5 million shortfall in 2022-23.

It said the institution had faced ¡°particularly ferocious¡± competition for domestic students, while the lack of help around tuition fees over the past decade has left a ¡°deep mark¡± on sector finances.

Other Welsh institutions recorded operating deficits, including 51¹ú²úÊÓƵ of Wales Trinity Saint David (?1.2 million) and the 51¹ú²úÊÓƵ of South Wales (?500,000).

Universities Wales said that it expected the aggregate underlying deficit across its members to hit ?70 million, compared?with a surplus of ?17 million in 2022-23.

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These figures do not include more recent pressures, including the increase in national insurance contributions, which is expected to cost institutions about ?20 million a year, and poor international student recruitment this year potentially wiping ?70 million or even ?80 million off balance sheets.

¡°Welsh universities are facing some of the most pressing, difficult financial circumstances in recent memory,¡± said a Universities Wales spokeswoman.

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¡°There is an ongoing and urgent requirement for government to support Wales¡¯ universities so that they can continue to deliver the economic and social benefits that are felt in every part of the country.¡±

patrick.jack@timeshighereducation.com