University finances at a glance 23/24
02 Dec 2024
An overview of our Financial Statements for 23/24
Summary of key financial results
Amid the ongoing challenges facing the UK Higher Education sector, financial stability has never been more important. It serves as the foundation for the University’s long-term success, enabling us to invest in our students, staff, and wider strategic priorities, and position ourselves to address future challenges effectively.
We are therefore pleased to report that the University achieved a good financial performance in the 12 months to 31 July 2024 and delivered an adjusted operating surplus of £41.6 million. The 23/24 surplus was down £65.2 million from last year, excluding the changes to the USS deficit recovery plan. The 23/24 fall in surplus reflects increased staff expenditure and investment in staff and student related facilities and support.
As an exempt charity, the University operates on a not-for-profit basis and reinvests all surpluses in activities that align with our values and core goals. The continued strong demand for student places at Manchester, combined with excellence in world leading research has led to a marginal increase in total income from 2022/23.
In 23/24 our income grew by 1.5% to £1.4bn due to:
- increased income from tuition fees;
- increased research grants and contracts;
- higher investment incomes;
- increased donations and endowments.
Reflecting on the results, Phillipa Hird, Chair of the Board of Governors, said: “Our financial performance underpins our investment in our people, our students, our research, our services, and our estate. This year has seen investment in critical digital infrastructure that will underpin our performance and the experience of our students and staff.
“There are ongoing financial challenges in the sector, but we have planned carefully and remain in a stable position. The Board remain of the view that that a larger surplus would allow for sustained progress in critical investments such as our Zero Carbon Masterplan.
“The year ahead will bring important decisions about strategic direction and priorities for investment. In 2025 – continuing the momentum created by our bicentenary celebrations – the University will launch its first major fundraising and volunteering campaign to underpin our global research impact, our innovation, and our student support.”
Professor Duncan Ivison, President and Vice-Chancellor, said: “While the sector currently faces serious financial challenges, from which we are not immune, our careful approach to financial sustainability provides us with a platform from which to build for the future.
“However, it is likely that we also will face increasing financial challenges in the future and we need to be preparing now to ensure we are able to continue to invest in ways that support outstanding teaching and research, as well as our commitments to social responsibility and innovation.”
Where our money comes from
Tuition fees represent 52% (£714m) of the University’s total annual income (£1.4bn). Of this, 39% are from UK students, and 61% are from international student fees.
In November, the government announced that tuition fees for undergraduate home students will increase by £285, from £9,250 to £9,535 per year. This is the first rise in over eight years, and the cap increase will come into effect from the next academic year (September 2025) for both new and current home undergraduate students (subject to Parliamentary approval).
Our other main source of income is research-related, with research grants and contracts representing 21% of total annual income. Research income has grown by 6% on the prior year.
Other income sources include funding body grants (11% - a decrease from 22-23) and investments, philanthropy and endowments (16%).
Where we spend our money
The largest proportion of our income is spent on our staff (52% - £692m excluding release of USS pension deficit recovery provision). Our staff costs have continued to grow over the last few years driven primarily by larger pay awards during a period of high inflation, increased staffing numbers, automatic pay increments and increased pension costs. In 23/24 the University gave a cost of living pay award to staff of most grades of 5%.
The University has a significant programme of major projects which aim to bring about IT transformation, system, and process efficiencies and to improve areas of professional services. The University maintained its high level of investment in this area at £52.1m in 2023/24 in line with the 2022/23 spend of £53.5m. This includes £3.3m investment specifically related to the development of the University’s Fallowfield residences, to provide more high-quality, modern student accommodation.
Investing in and supporting the student experience
In collaboration with the Students’ Union, we have recently enhanced our financial support packages by increasing bursary awards from £2,000 to £2,600 and £1,000 to £1,300 respectively. From September 2025, we are investing an additional £2.5 million per year to raise the household income thresholds for Manchester Bursary eligibility, so that more than 1,000 extra students will benefit from the bursary: an increase of nearly 20%.
Investing in environmental sustainability and our campus
The University is focussed on improving the environmental sustainability of its estate and is in the process of investing significantly on moving towards zero carbon.
2023/24 saw the completion of three zero carbon buildings, namely the renovated Booth Street East and two residential blocks, Dalton Ellis Ewings and Graham. Booth Street East represents the first building on campus to be heated solely from air source heat pumps, reducing emissions by 75% from day one.
Got questions about University finances?
On Monday 16 December from 12.30pm to 1.30pm, Duncan Ivison, President and Vice-Chancellor will be joined by Carol Prokopyszyn, Chief Financial Officer for his next all colleague Townhall which will be focused on this year’s results and answering any questions you may have.