The University of Edinburgh plans to cut £140 million to address severe financial difficulties, partly due to a decline in international student enrollment in the UK. The university will also leverage some of its assets to generate revenue while implementing "devastating cuts." Additionally, the university will review all capital expenditures, including previously approved projects. In a statement released on February 28, Vice-Chancellor Prof. Sir Peter Mathieson described the decision as a necessary but radical step requiring "sustainable cuts" to manage declining income and rising costs. He projected that the university would operate at a deficit in the coming years. "The financial gap we need to close over the next 18 months is about 10% of our annual turnover—similar to many other universities. This must be a recurring and sustainable cost reduction. For us, that equates to approximately £140 million. To put this in perspective, it costs around £120 million per month to run the University of Edinburgh," the statement read. The university aims to restore financial stability by the 2026-27 academic year through difficult but necessary decisions. Mathieson also highlighted several factors contributing to the financial strain, including stagnant teaching income, rising utility costs, inflation, unexpected changes in National Insurance Contributions, and increased employment costs. Furthermore, the UK is becoming less attractive to international students, exacerbating the financial challenges. Despite the impending changes, Mathieson assured staff that the university would emerge stronger, continuing its significant positive impact on society for centuries to come.
