Financial Statements 2014
Contents Members of Council and Major Committees Honorary posts, Officers...
Source: www.glos.ac.uk. All Rights Reserved. 2025 University of Gloucestershire
The University Executive Committee is responsible for all matters associated with the development and management of the university.
Last updated: 31 October 2025
Members of Council and Major Council Committees
Honorary Posts, Officers and Advisers
Operating and Financial Review (incorporating the Strategic Report)
Independent Auditor’s Report to the Governing Body of the University of Gloucestershire
Financial Statements for the Year Ended 31 July 2025
| Members of Council for the period 1 August 2024 to 31 July 2025 | Membership of Major Council Committees as at 31 July 2025 |
|---|---|
| Mrs R Albrighton (appointed 13 May 2025) | Audit and Risk Committee |
| Mr B Ajibola (resigned 30 June 2025) | Mrs P Sissons * |
| Ms I Barker | Mr J Cooper |
| Mr M Burch (appointed 1 March 2025) | Ms T Harrison |
| Mr T Chambers | Ms J Walkling |
| Mr J Cooper | Mr P Tinson (co-opted member) |
| Mr P Crichard (resigned 1 July 2025) | Ms S Jary (co-opted member) |
| Ms N de Iongh (Chair) | |
| Mrs R Dooley | Finance and General Purposes Committee |
| Mr C Fung (resigned 15 May 2025) | Mrs R Dooley * |
| Mr S Gardiner | Mr B Burch |
| Miss V Garratt (resigned 30 June 2025) | Mr S Gardiner |
| Ms T Harrison (appointed 16 May 2025) | Dame C Marchant DBE |
| Miss B Holland (appointed 1 July 2025) | Dr P Warry |
| Dr L Livesey (resigned 3 December 2024) | Ms J Meekings Davis (co-opted member) |
| Dame C Marchant DBE | Mr D Oakhill (co-opted member) |
| Miss F Rowley (appointed 1 July 2025) | |
| Mrs P Sissons | Governance and Nominations Committee |
| Ms E Soros | Ms N de Iongh * |
| Mr D Soutter (resigned 31 December 2024) | Mrs R Albrighton |
| The Rt Revd R Springett (Vice-Chair) | Ms I Barker |
| Mr J Sucksmith | Dame C Marchant DBE |
| Ms J Walkling | Ms E Soros |
| Dr P Warry | Ms J Walkling |
| Prof G Layer (appointed 15 September 2025 | Mr S Gardiner(Senior Independent Governor in attendance) |
| Board Apprentice | Remuneration and Human Resources Committee |
| Ms E Hill (appointed 1 September 2024) | The Rt Revd R Springett * |
| Mr B Edington-Thomas (appointed 12 May 2025) | Ms N de Iongh |
| Mrs R Dooley | |
| Ms B Holland | |
| Mrs P Sissons | |
| Ms E Soros | |
| * denotes Chair |
| Honorary Posts | Registered Office |
|---|---|
| Chancellor Lord Michael Bichard Pro Chancellors Rt Revd R Treweek | Fullwood House Park Campus The Park Cheltenham Gloucestershire GL50 2RH |
| OFFICERS | ADVISERS |
|---|---|
| University Executive Committee Vice-Chancellor Dame C Marchant DBE Chief Financial Officer Mrs C Stallard Chief Marketing Officer Ms K Clough Chief Operating Officer Dr M Andrews Executive Dean for Research Professor Angus Pryor Executive Dean for Partnerships, Inclusion and Innovation Professor Cathia Jenainati Executive Dean for Teaching and Quality Dr Graham Parton Company Secretary Dr M Andrews | Solicitors Mills and Reeve One Centenary Way Birmingham B3 3AY Harrison Clark Rickerbys Solicitors Ellenborough House Wellington Street Cheltenham GL50 1YD Registered External Auditors Grant Thornton UK LLP 8 Finsbury Circus London EC2M 7EA Registered Internal Auditors RSM UK Risk Assurance Services LLP 10th Floor 103 Colmore Row Birmingham B3 3AG Bankers HSBC PLC 62 George White Street Cabot Circus Bristol BS1 3BA |
This report reviews the University’s activities in the year 2024-25 in the context of the challenges and risks within which the University operates, and comprises the following sections:
Section 1: Delivering our Strategic Priorities
1.1 Introduction
1.2 Student Recruitment
1.3 Outstanding Education
1.4 Student Experience
1.5 Innovation and Partnerships
1.6 Research
1.7 Our People
1.8 Future Plans and Challenges
Section 2: Public Benefit Statement
Section 3: Financial Performance
3.1 Key Financial Highlights
3.2 Review of the Year
3.3 Financial Sustainability and Key Performance Indicators
3.4 Payment of Creditors
3.5 Value for Money
3.6 Accounting Systems
3.7 Post Balance Sheet Events
Section 4: Annual Report of the Remuneration & Human Resources Committee on Senior Staff Remunerations
4.1 Introduction
4.2 Remuneration and Human Resources Committee
4.3 Approach to Senior Staff Remuneration
4.4 Remuneration of the Vice-Chancellor (Head of Institution)
4.5 Pay Ratios
4.6 Remuneration of the Executive Group
4.7 External Appointments
4.8 Expenses
Section 5: Corporate Governance
5.1 Introduction
5.2 University Council
5.3 Academic Board
5.4 Audit & Risk Committee
5.5 Other Committees of Council
5.6 Financial Responsibilities of the University’s Council
5.7 Statement of Internal Control
1.1 With a clear strategy, comprising six strategic goals, in place until 2027, the University made significant progress in all these goals during 2024-25. However, this is part of a multi-year programme of transforming the University, building on its strengths in delivering excellent student outcomes and a connected experience working with partners both locally and globally. Highlights included improvements in our graduate outcomes and NSS scores, the opening of FuturePark cyber facilities in Cheltenham, taking significant steps through estates disposals and course redesign and consolidation to offer a better student experience and stabilize our financial position, recruitment of new leadership capabilities in both research and commercial and transformation activities, introduction of a new, digitally enabled student support model, alongside improvements in our recruitment of students.
In addition, with major rises across all three of the UK’s most influential university league tables. In the Times and Sunday Times Good University Guide 2026 the University rose six places. This builds on a 22-place climb last year. In the Guardian University Guide 2026, the University achieved one of the largest national improvements, jumping 32 places to secure 68th position and recognition as the UK’s fifth biggest riser. Meanwhile, the Complete University Guide 2026 highlighted a 16-place leap, the second highest climb in the South West. Collectively, these results place the University among the fastest-rising institutions in the country. They reflect improvements across areas that matter most to students, from teaching quality, student satisfaction and staff-to-student ratios, to employability, facilities and graduate prospects. The successes have been welcomed as a testament to the commitment and dedication of staff and students.
With an ever-changing landscape both globally from an economic and social perspective as well as across the higher education sector, the strategy remains the same into 2025-26, with key delivery milestones across each of the six objectives.
Our Strategy
Why we are here – our vision: Changing your world, so you can change ours
What is our focus – our core purpose – UoG will Drive knowledge and careers through
excellence in Education, Business, Applied and Social Sciences, Health and Wellbeing, Computing, and Creatives
What we will deliver – our intent – The Connected University
Provide an outstanding education
Support our students to thrive and achieve their full potential
Encourage innovation and promote advancement of our community
Reconfigure our infrastructure
Value, empower and enable staff
Drive financial sustainability
Our values underpin what we do: Integrity, Nurture, Ambition, Curiosity, Sustainable
The University continues to review and enhance its academic portfolio to ensure that our courses meet the aspirations of students and the evolving skills needs of employers locally, nationally, and internationally. Throughout 2024-25, we made further progress in aligning our portfolio with our strategic aims, maintaining a strong focus on professional education, applied learning, and real-world impact.
Student recruitment remained resilient in a highly competitive market, with overall enrolments steady compared with the previous year. Our apprenticeship provision once again contributed positively to our student community. While national immigration policy changes continued to influence the international student market and numbers were lower than previous year, the University successfully recruited onto a number of cohorts of overseas students, demonstrating the continued appeal of our offer and the strength of our global connections.
During the summer of 2024, we launched work to refresh the Connected University brand, engaging staff and students in exploring how our values and identity can be brought to life through communications, teaching, and community engagement.
Our partnership activity also continued to thrive. In 2024-25, we welcomed over 3,000 students studying with our overseas partners and more than 1,100 students registered on programmes validated by the University. We now work with 21 partners, both UK and International, reflecting our commitment to collaboration, innovation, and global reach.
Programme Delivery and Funding
The University successfully delivered against the Office for Students (OfS) Wave 2 programme objectives, managing a total annual funding allocation of £460,000. This was directed towards the development and delivery of the Healthcare Science Practitioner and Facilities Management Apprenticeship programmes.
Partnerships and Portfolio Performance
Partnership activity continued to expand, with a collaborative portfolio of 21 active partners. Recruitment across these partnerships exceeded expectations, achieving 106% of target, with a total of 2,791 learners enrolled. This activity generated £3.4 million in gross revenue for the reporting period.
As a silver Teaching Excellence Framework (TEF) University, we are committed to enhancing our education offer and improving outcomes for our graduates. A particular goal is to improve consistency across the student experience and outcomes across all our courses. Our Curriculum Transformation Programme, which is a multi-year initiative, kicked off early in 2024-25 to review and revise our course offer and delivery models, and to define the core curriculum frameworks that will characterise University of Gloucestershire education and our graduate attributes. The four main initial priorities for transforming our Curriculum are:
The University is comfortably above benchmark standards for the Office for Students B3 metrics: continuation, completion and progression. Action plans have been implemented for the handful of courses that are below benchmark. 94.8% of University of Gloucestershire graduates are in employment or further study 15 months after leaving university. More than 75% of University of Gloucestershire graduates secured employment classified as “highly skilled” or went into further study.
Amongst the set of highly positive results, subject groups performing particularly well include Language and Area Studies, which ranked joint top nationally; Geography and Environmental Studies and Technology, which both ranked 2nd nationally; and Law, which ranked joint 3rd. In each of these subject areas, 100% of University of Gloucestershire graduates reported being in employment or further study.
Subjects Allied to Medicine and Biological and Sports Sciences also performed well, with graduate outcomes being amongst the best in the country; 99.7% and 94.4% of graduates reported being in employment or further study, respectively.
The University continued to score above sector and benchmarks for Assessment and Feedback in the 2025 National Student Survey, and 18 courses achieved over 90% satisfaction rate for Teaching Quality. Our programmes in Animation, Television Production, Geography, Accounting and Finance, Law, Teacher Education, Sport and Exercise Science and Strength, Conditioning and Rehabilitation performed particularly well across the NSS metrics. Particularly strong subject-level performances include:
Furthermore, the BA(Hons) Photography (Editorial & Advertising) was awarded The Association of Photographers (AOP) Course of the year 2025.
Supporting our students to thrive and achieve their full potential is a core goal of our strategic plan. Following a major review in 2023/24, for 2024/25 we implemented a new approach for student support. The new service is based on our core principles:
Our new digital assistant, Nova, has transformed the way students access information and resolve queries. Available on-line through our long-established MyGlos app, it is available 24 hours a day, 7 days a week, 365 days a year. During 2024/25 it handled 36,812 student conversations and successfully resolved 97.5% of all enquiries. While Nova provides a digital front-line of support, our new Student Centres in Gloucester and Cheltenham provide a physical space for drop-in support, and act as a key gateway to other support services including Disability Services, Money Advice, and Mental Health support.
As maintenance loans have not increased in line with inflation and students continue to face difficulties in meeting their living costs, supporting students facing financial hardship remains an imperative for the University. We maintained our promise in 2024/25 of offering accommodation in university managed halls for all first-year students, including international students, and we work closely with our Students’ Union to provide financial support.
Building on our existing accommodations guarantee, our offer to students in 2024/25 included two new promises: being part of a connected UoG community and graduating job ready. We are therefore pleased to see excellent results in the latest Graduate Outcomes survey: 95% of our graduates progressed into employment or further study. The proportion of our students progressing to highly skilled employment was 78%.
During the year, the University of Gloucestershire strengthened its enterprise and innovation portfolio through a series of strategic initiatives, underpinned by external funding and national recognition. These activities continue to enhance regional economic growth, expand opportunities for students and local businesses, and support the University’s long-term financial sustainability.
Help to Grow (B2B Interactions): Successfully maintained delivery of the 90% government-funded Help to Grow: Management programme, securing two additional cohorts during the period.
UK Shared Prosperity Fund (UKSPF): Continued delivery of the UKSPF-funded SME business support programme, supporting growth for local SMEs (£106k). In April 2025, secured a further £70k allocation to expand tailored support for pre-start and early-stage enterprises in and around Gloucester city centre. This funding also underpins an awards programme providing business grants to young entrepreneurs.
FuturePark: FuturePark, the University’s flagship hub for innovation in sustainable technologies, was formally opened during the year. The development has been supported through Office for Students (OfS) capital funding of £5.8m, which has enabled the creation of new facilities designed to foster research, enterprise collaboration, and skills development. FuturePark now provides a dedicated environment for start-ups, SMEs, researchers, and students to co-locate and co-create solutions to future-facing challenges, with a particular focus on sustainability, agri-tech, and environmental innovation.
Golden Valley Skills Hub: Collaborated with partners such as the Gloucestershire County Council, GCHQ, Amazon Web Services and Gloucestershire College on the Golden Valley Skills Hub launching the initiative at the House of Commons. The Hub further strengthens the University’s role in skills development and regional workforce planning.
Small Business Charter (SBC) Accreditation: The University achieved accreditation from the Small Business Charter (SBC), awarded by the Chartered Association of Business Schools. This national recognition highlights the University’s leadership in SME support, entrepreneurship, and regional economic development. SBC status aligns directly with FuturePark and UKSPF programmes, reinforcing a joined-up approach to enterprise and innovation. It also provides access to government-backed initiatives such as Help to Grow: Management, supporting the University’s long-term financial sustainability by diversifying income streams while delivering social and economic impact.
UoG Online: The University launched two online graduate courses in partnership with Higher Ed Partners (HEP). The MBA online and the MSc Computer Science online welcome the first cohort of students in September 2025. Recruitment follows a carousel model with 6 entry points per year. The second cohort of students is planned for November 2025. Planning is now underway for the next set of courses to be launched in September 2026, namely Masters in Education online and Masters in Psychology online.
Rugby Football Union (RFU) Officiating Hub: UoG and the RFU have partnered to develop a groundbreaking programme, to discover, support and develop talented referees and assistant referees, bringing together professional rugby and football match officials.
The research leadership, and resulting structures for supporting and developing research, have been reconstituted, bringing a new focus on research excellence through ambitions for the REF and research excellence more broadly, a renewed focus on research income, and a change in research culture building on areas of previous success, whilst seeking to nurture new areas. A new structure was put in place with an overall strategic research lead, working alongside a REF lead and a new lead developing a new Graduate School, these three posts being created to replace the previous singular post of Head of Research. Underpinning this was a revised Gloucestershire Research Office, which has moved to facilitate REF preparation, institute liaison with each of the schools to capture funding and put in place support for the wider research culture.
Research funding at the University continued to grow both in quantity and quality. During this period, the University won funding from the British Academy, the EU Horizon programme, the ESRC, MRC and NERC, as well as being part of framework agreements with the Defra family of government departments, forming a partnership with a Japanese research organisation, and a framework agreement for future research with the European Commission. For the first time, the University has qualified for a UKRI block grant to support Open Access funding.
Through the year, we undertook consultations with schools about future research strategies as part of building towards the next REF (2029) and beyond, recognising that an excellent research environment takes time both to establish and to generalise. The work of this period established a new framework of leadership, the necessary underpinning structures, and ambitions, whilst continuing to extend research income and achievement.
With regards to REF preparation, all academic colleagues’ potential contributions to knowledge and understanding (CKUs) have been reviewed, including by external experts, to make an assessment of likelihood of participating effectively in the REF, as well as a consideration of contract type, with the work beginning in the summer of 2025 and looking to conclude in the autumn. As part of this process, all Units of Assessment that the University intends to submit to the REF were reviewed, to optimise those with the most significant contribution to be made, which has resulted in the beginning of a process of consolidation towards nine units, with a consolidation in the humanities. We are on track to submit a larger number of colleagues across a narrower range of units, but on average, a higher quality of contribution.
As part of nurturing and sustaining our research environment, we have taken decisive actions to allocate to those areas in the University that are most research active, working to develop an allocation mechanism that reflects contribution to research, as well as building for the next REF. Whilst we are finalising the development of that mechanism, we put in place the mechanisms for the first capacity building competition using QR funding for the academic year 2025/6. For the first time the University has won more than £5million in research funding, over a period of 5 years, triggering a change in accounting methodology as the University gains traction in funded research.
The University remains committed to investing in and supporting its staff, recognising that our people are central to delivering our strategic ambitions and creating a thriving academic and professional community.
Each year, we define a set of core people priorities to guide our efforts in workforce development, attraction, engagement, development and organisational effectiveness.
In 2024, our focus centred on several key areas:
With 2025-26 already underway, significant delivery has been seen across the six strategic goals.
Undergraduate (UG) Recruitment: New UG firm acceptances exceeded 1700 in line with projections and on track to deliver the planned 3% year-on-year growth.
Postgraduate Recruitment: Overseas postgraduate numbers increased significantly, driven by the introduction of the new Professional Masters by Research in International Business, with enrolments reaching 1,000.
City Campus opened in August 2025 ready to welcome students in September and creative subjects were relocated from Hardwick campus to Park campus, completing the development of Park as a Creative and Computing campus. Partnerships continue to be a critical part of the University’s success, with support of the Golden Valley development through the development of a skills hub prototype FutureCraft being showcased alongside partners Amazon Web Services, Gloucestershire County Council and Gloucestershire College in September 2025.
Looking forward, the team will continue to focus on our balanced scorecard and seeing improvements across the organisation – The balance scorecard tracks progress on 4 key areas Financial, Student Enrolment, Student Outcomes and People. Notable improvements have been evidenced in Student outcomes with increased retention rates for students, international student recruitment continues to grow, in particular for business-related courses. People have seen the greatest improvement across all the key performance indicators with staff churn moving towards target, absenteeism reducing and a significant increase in staff engagement and completion of the staff survey.
The University’s operating environment remains very challenging, as it does for many Universities. Student recruitment remains the key driver of sustainable financial performance, and the previous cap on regulated home tuition fees eroded the real terms value of the fee over the decade by nearly 30%.
Our key challenges relate to the need to grow our student numbers, diversify our income and control our costs. The rising 18-year-old population, which is expected to peak in 2030, provides an opportunity for the university to grow and it is good to see growth emerging in 2025-26. However, largely due to concerns around cost-of-living undergraduate recruitment remains volatile particularly in areas of provision such as nursing and education. Overseas recruitment has also been impacted in recent years by the political focus on cutting migration. In 2024-25, we have continued to focus on reducing our non-pay/supplier spend and making savings in our pay budget as further pressures are applied to this with the National Insurance increases and pay award and increment increases. We continue to focus on delivering sustained efficiency, contributing to regional economic growth and improving outcomes for students from disadvantaged backgrounds.
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The objectives of the University are the advancement of education in the United Kingdom for public benefit including the provision of teaching and the undertaking of research activities.
The University of Gloucestershire is incorporated as a private company limited by guarantee and is an exempt charity under the terms of the Charities Act 2011. As an exempt charity it is not required to be registered with the Charity Commission but is however subject to the Charity Commission’s regulatory powers which are monitored by the Office for Students. The University Council have due regard to the Charity Commission’s public benefit guidance. The Council have taken into account the Charity Commission’s guidance on public benefit and are satisfied that the activities of the University as described in these financial statements fully meet the public benefit requirements.
The prime beneficiaries are the students of the University of Gloucestershire who are engaged in learning, personal development and research activities. Other beneficiaries include employers, businesses, school children and the general public. Staff and students also engage in voluntary action in the local community and overseas.
We pride ourselves on being an academic community that is student-centred, learning-led and research-informed. Of particular relevance to public benefit is our commitment to widening participation and ensuring that diverse groups are supported across the whole student lifecycle and to provide opportunities for all. This commitment is captured in our published Access and Participation plan which looks to reduce and remove barriers, challenge perceptions and provide continual support to all students to ensure we are fostering, enabling and promoting equality of opportunity and outcomes at all stages of the student lifecycle: access, success (continuation and attainment) and progression.
The University works predominantly with schools and colleges, including institutions in its partnership network in Gloucestershire and neighbouring counties. It has strong strategic partnerships with further education colleges in the area, including South Gloucestershire and Stroud College and Yeovil College, and the Institute of Technology in Swindon. Interventions are in place to work with a wide range of students to ensure our intake reflects all areas of society. Such projects include residential summer schools, opportunities to access subject taster sessions and application support.
The University is committed to improving energy efficiency, reducing energy use and corresponding CO2 emissions and has again achieved First Class status in the 2024/25 People and Planet University League.
As required by relevant law and regulations, the University reports annually against the Streamlined Energy and Carbon Reporting (SECR) protocol. The data collected and analysed using the Greenhouse Gas Reporting Protocol – Corporate Standard methodology are detailed below:
| 2024/25 | 2023/24 | |
|---|---|---|
| Natural Gas consumption for on site operations (heating, catering, etc) – Scope 1 KWh | 4,536,168 | 4,641,114 |
| Fuel used for site vehicle activity – Scope 1 KWh | 21,013 | 10,562 |
| Total CO2e emissions for Scope 1 activities (fuels used on site for organisational activity) Tonnes | 835 | 815 |
| Electricity supplied from off site generation for consumption by on site operations (Heating, Ventilation, Air Conditioning, lighting, computers, etc) – Scope 2 KWh | 3,917,367 | 4,352,191 |
| Electricity generated and used on site (Photo voltaic cells) KWh | 0 | 0 |
| Total CO2e emissions for Scope 2 activities (energy generated off site and used on site for organisational activity) Tonnes | 693 | 901 |
| Total Scope 1 & 2 CO2e emissions Tonnes (for ESG target) | 1,529 | 1,716 |
| New ESG Carbon emissions target set by business April 2022 – 36% reduction in combined Scope 1 & 2 CO2e emissions from existing footprint by 2027 compared to 2018/19 emissions. | 29% reduction | 20% reduction |
| Emissions from business travel in rental cars or employee -owned vehicles where company is responsible for purchasing the fuel (Scope 3) Tonnes | 25 | 25 |
| Total CO2e emissions attributed to activity of business (Scope 1, 2 & 3) Tonnes | 1,554 | 1,741 |
| Carbon emissions target set by business: 33% reduction in Scope 1 & 32% reduction in Scope 2 CO2e emissions by 2030 compared to 2018/19 emissions (note: new target set Sep 2021) | Scope 1 = 19% reduction Scope 2 = 38% reduction | Scope 1 = 20% reduction Scope 2 = 20% reduction |
| Intensity Ratio – Tonnes CO2e emitted per 1000m2 Gross Internal Area | 17.7 | 19.5 |
Renewable energy supply:
Since 2019, the University has had a Power Purchase Agreement (PPA) which ensures that 20% of our electricity is supplied from wind farms. The University also seeks to generate electricity on site; however, our photovoltaic cells at Oxstalls and Park campuses did not generate electricity in 2024/25 due to faults. The University is investigating whether repair of these is cost-effective.
Actions taken to reduce consumption and emissions in past 12 months:
The University’s new City Campus opened in August 2025. The whole building has been modernised with new glazing, insulation, airtightness and air source heat pumps, supported by a Salix PSDS3a grant for £3,359K. The building has achieved an A-rated Energy Performance Certificate.
The sale of the Hardwick site and three buildings at the Park campus during 2025 has reduced our decarbonization liabilities by removing numerous gas boilers, non-LED lights and poorly insulated buildings.
Our LED lighting programme continues to reduce our electricity consumption. In 2024 and 2025, we replaced lighting in numerous buildings at Park through the FuturePark and Creative Campus projects. We also installed a new insulated roof on the Reynolds building as part of the enabling works for this project.
In March 2024, the University succeeded in obtaining a Salix PSDS3c grant for £690K to replace the gas boilers at Oxstalls Sports Science Building with air source heat pumps. This project will be completed in Autumn 2025 and will reduce natural gas consumption and associated greenhouse gas emissions.
Financial performance is key to ensuring that the University continues to be a successful and sustainable organisation, cash generation being a primary focus.
The University has prepared its financial statements in accordance with FRS 102 and the financial highlights are set out below.
The University reports a consolidated operating deficit for the year of £0.9m (2024: surplus of £2.1m). The reported deficit is after accounting for the FRS102 LGPS & USS (non-cash) pension credit of £2.3m (2024: £1.5m). The result, although a deterioration on prior year, reflects the controlled operational environment being managed as we navigate our way through a challenging and turbulent external market environment, driven primarily through student recruitment and fee income. Despite this contraction in income, pay costs remained stable and overall expenditure decreased.
The University continued to exceed its cash generation target of 10% and is reporting a year end ratio of 11.2% (2024: 13.4%) a decrease of 2.2%. Cash generation, liquidity and covenant compliance continues to be our primary focus in financial management.
The last five years has seen significant asset investment, with c£100m fixed asset investment over the last 5 years. Net assets have declined slightly to £93m (2024 £96m) largely driven by cash contraction.
Despite the continued and increasingly challenging external operating environment for the University and the higher education sector generally regarding capped tuition fees and cost of living crisis, satisfactory financial performance has been achieved. The investment in new facilities and estate rationalisation provides a sound footing to face future challenges.
Capital investment of £26.9m was delivered during the year, with £19.6m relating to the City Campus development. The City Campus development has been supported by several successful capital grant bids awarded in previous financial years, and additional loan finance. Capital expenditure in the year has also continued to deliver additional and upgraded space and facilities supporting the university with its estate’s rationalisation and development of its portfolio.
Fixed assets of £10.1m were disposed of during the year relating to Hardwick and Famery and Broadlands Lodge, the disposal created a gain on disposal of £0.1m.
The FuturePark OfS funded project at The Park Campus in Cheltenham completed during Autumn 2024, with teaching commencing at the start of the year. The development includes a Cyber Control Centre, Virtual Reality facilities, a digital lounge and enhanced teaching and learning facilities. IT investment continues to support the business maintaining the core systems and infrastructure in addition to delivering significant projects to support and improve the student experience.
In July 2024, the University entered a secured facility agreement with Barclays for £42.9 million, consisting of three tranches: a term loan of £27.9m and two Revolving Credit Facilities (RCF) – one of £8m and a further RCF of £7m, with all three tranches having options to extend. The £27.9 million had been drawn to refinance the previous Barclays secured loan. The £8m RCF facility is available to help support the university minimum liquidity requirements whilst the £7m RCF facility is specifically linked to fixed asset disposals. In July 2025, the University exercised the loan extension options, with maturity dates now being: term loan May 2027; and RCF’s January 2026 and December 2026.
Our long-term borrowings (secured loans) at year end is £28.7m (2024: £32.1m).
The gearing ratio (including Service Concession) has therefore decreased to 37.2% (2024: 41.5%) and continues to sit below the target of 45% set out in the Finance Strategy.
Due to a number of material asset disposals being due to complete close to the financial year end and the potential impact any delay would have on year-end covenants amendment agreements were entered into with both lenders. In July 2025 Natwest provided a waiver in relation to the Debt Service cover ratio, Barclays also amended both the debt service cover and operational leverage ratios.
All bank covenants were therefore satisfied at year end.
Cash deposits are invested in accordance with the University’s Treasury Management Policy. The prime requirement of the policy is for capital sums to be distributed between approved financial institutions to ensure minimal risk exposure.
Deposits held with any one bank should not exceed £7m. No breeches were noted during the year. At the balance sheet date £7.4m was placed on deposit with a number of banks; average monthly balances held by deposit takers over the year were £10.3m (2024: £27.6m).
The year-end liquidity position has decreased during the year and is below the target of 75 days set out in the Finance Strategy, and at the year-end liquidity levels stood at 42 days (2024: 83 days).
Retirement benefits for employees of the University are provided by a number of defined benefit schemes. The financial results continue to include the accounting impact of FRS 102.
Under the Gloucestershire County Council Local Government Pension Scheme (LGPS) the net pension liability as at 31 July 2025 continues to be reported as £0.0m (2024: £0.0m; 2023: £0.0m), due to the scheme continuing to be fully funded and reporting a surplus of £57m an increase of £28m from prior year.
The Universities Superannuation Scheme (USS) and Church of England Funded Pension Scheme (CEFPS) are multi-employer schemes for which it is not possible to identify the assets and liabilities to the University for members and are therefore accounted for as defined contribution retirement benefit schemes. The net pension liabilities for any contractual commitment to fund past deficits have been identified within provisions: USS: £0k (2024: £0k), CEFPS: £0k (2024: £0k) due to both schemes reporting a surplus.
The Teachers’ Pension Scheme (TPS) is a multi-employer unfunded scheme and the University’s share of assets and liabilities cannot be separately identified. This scheme is therefore accounted for as a defined contribution retirement benefit scheme.
Employer contributions to pension schemes were as follows:
| Pension scheme | Current Contribution rate | 2024/25 £000 | 2023/24 £000 |
|---|---|---|---|
| LGPS | 22.10% plus £159k pa | 2,981 | 3,402 |
| USS | 14.5% | 149 | 165 |
| TPS | 28.68% | 6,066 | 5,334 |
| Defined Contribution Scheme | 10.0% | 319 | 277 |
| Others including Church of England Scheme | 39.9% (CEFPS) | 6 | 7 |
| Total | 9,522 | 9,186 |
From September 2021 all new professional services staff, except for those with continuous pensionable LGPS service are recruited through the newly incorporated subsidiary company, University of Gloucestershire Professional Services Limited (UOGPSL) and were eligible to join the new Defined Contribution Pension Scheme with Legal & General, the scheme has been awarded the Pension Quality Mark (PQM) Plus accreditation.
Management closely monitor the financial performance of the University, reporting into University Executive Committee, Finance and General Purposes Committee and Council. Swift action is taken to address any adverse movements, to ensure the University remains on a stable platform to face the current and future challenges in the HE sector.
We measure performance against the Finance Strategy targets, and our focus during 2024-25 has been on cash and cash generation. The very significant investment in City Campus in the year has depleted year end cash balances, but it is good to report cash generation has remained strong. Performance against Key Financial Indicators and bank covenants is reported to Council and relevant sub-committees. Business Planning meetings with Schools and Departments are held three times a year where performance against local targets is monitored and targets for the year ahead are agreed.
Performance against targets for the 2024-25 year is set out below:
| Key financial indicator | Performance 2024-25 | Finance strategy target 2022 to 2026 |
|---|---|---|
| Cash generation from operating activities | 11.9% | 10% of turnover |
| Operating surplus (before FRS102 pension charge) | (3.8%) | 4.5% of turnover |
| Year-end liquidity ratio (cash & investments / expenses less depreciation) | 42 days | To exceed 75 days |
| Gearing – External borrowings (all borrowings and service concessions) | 37.6% | Not to exceed 45% of turnover |
| EBITDA (before FRS102) as a % of total turnover | 5.9% | To exceed 10% of turnover |
| Investment in capital and maintenance – capital (estates, equipment and IT) – recurrent maintenance | Capital = 37% Recurrent = 1.2% | Investment as a % of turnover: 5% 1.8% |
It is the University’s policy to obtain the best terms for all its business activities and therefore terms are negotiated with individual suppliers. The University aims to pay creditors in line with its terms and conditions set out on individual purchase orders; these terms may vary by agreement or contract, or by statutory or regulatory conditions. The University paid 92.91% (2024: 96.3%) of the 8,180 invoices received within 30 days of them being determined as valid and undisputed. The average (median) payment time for invoices was 22 days (2024: 19.0 days). The University did not receive or make any payments in respect of the late payment of invoices.
The focus on value for money from all expenditure with 3rd party suppliers has been further enhanced with the creation of a centralised commercial and procurement function, this team is focusing on economy, efficiency and effectiveness in our procurement processes and ongoing commercial management of suppliers. The team are now taking a category management approach to supplier management ensuring that we identify opportunities for consolidation of contracts, improved value for money from the scope of services and contract management cadence is embedded across the University for key suppliers.
The University continues to utilise Agresso accounting software and related systems and applies regular system updates. The University is migrating to a cloud-based solution for Finance, HR and payroll systems, and a contract was entered into in May 2025 to implement a cloud-based solution for Finance during 2025-26.
The University completed on the sale of unused playing fields, known as the Folley, during October 2025. The sale proceeds for this were c£6m and this sale will be reflected within the 25/26 financial statements. There have been no other post balance sheet events.
The University is committed to transparency in Senior Staff remuneration, and the publication of this report as part of our annual financial statement is an important part of that commitment. This section is the annual report from the Remuneration and Human Resources Committee (RHRC) to Council, as required by the CUC Code.
Throughout this report ‘Senior Staff’ refers to those roles as defined in section 4.6 below. The University Executive Committee of the University includes wider members of the University outside of defined ‘Senior Staff’, including the Executive Deans of Schools as well as the People Director.
The Council adopted the Committee of University Chairs (CUC) ‘Higher Education Senior Staff Remuneration Code’ (November 2021), including the supporting documents referred to by this Code, in its approach to Senior Staff remuneration and the Remuneration and Human Resources Committee review any updated versions of this Code as they are published and amend its practices accordingly including the CUC guidance on Decisions taken about Severance Payments in HEIS (June 2018).
Council, through its Audit & Risk and Finance & General Purposes Committees, also ensures it follows the stipulations regarding Senior Staff remuneration contained in the latest publications issued by the Office for Students, including the Accounts Direction.
Remuneration and Human Resources Committee (RHRC)is the committee responsible for the development of remuneration and reward policies for Senior Staff as referred to above, together with terms and conditions of employment for such staff, and for discussion of the University’s people strategy and pay framework for all staff.
RHRC also has responsibility to Council for the oversight of pay gaps based on gender, ethnicity and other protected characteristics, as well as equal pay and other human resources matters. The Committee also receives reports on expenses claimed by Senior Staff, the register of interests, and the register of gifts and hospitality. During 2024-25 the Committee met twice but has additional meetings as required.
Council believes a single committee that combines strategic oversight with specific decision-making on senior pay, offers an aligned strategy and culture, enhanced governance and consistency of approach. The Vice-Chancellor themself is not a member of RHRC and plays no role whatsoever in establishing their own remuneration but attends for relevant agenda items including discussions concerning the performance of other members of the Executive group as well as discussions concerning the University’s overall approach to pay, conditions and the People Strategy and priorities for all staff. With a view to ensuring transparency a Student Member of Council is included in the membership of RHRC. The People Director also attends each meeting to present relevant on relevant agenda items.
RHRC is independent, being made up exclusively of External Members of Council plus one Student Member. The membership of RHRC includes the Chair of Council. The competence of its membership is reviewed annually by Council through its Governance and Nominations Committee. This includes consideration of an individual’s expertise on appointment to RHRC as well as through the annual effectiveness review process led by the Chair of Council. The Chair of RHRC is ex officio the Vice-Chair of Council. Membership in 2024-25 was as follows:
The full Terms of Reference and Membership for RHRC (as with all Council sub-committees) may be found on the University Council webpage.
The University’s approach to Senior Staff remuneration is designed to ensure that we set pay levels for Senior Staff that are proportionate, fair, appropriate and justifiable, reflecting the skills, value, contribution and performance of the Senior Staff whilst also demonstrating value for money and the best outcomes for our students. It is also designed to attract and retain competent individuals to lead the University to achieve its strategic goals.
To ensure its approach to Senior Staff remuneration remains appropriate, RHRC periodically contributes to senior remuneration benchmarking surveys and receives reports from UCEA and other external sources which benchmarks the pay of the Senior Staff roles against sector norms.
Members of ‘Senior Staff’ are appointed on fixed basic salaries as determined by relevant benchmarking. Subject to satisfactory performance, salaries normally increase each year in accordance with the nationally determined pay award or are reviewed and determined in line with sector benchmarking to ensure we are meeting the balance between recruitment and retention, as well as value for students.
Each member of the Executive Committee (including Senior Staff) has annual performance objectives set in September which are reviewed at 6 months and 12 months respectively. The Vice Chancellor’s performance objectives and review are undertaken by Chair of Council. RHRC also receives a report on the performance of the Executive Committee from the Vice-Chancellor. In addition to these reference points, RHRC also considers the broader institutional context of the University when determining Senior Staff pay and the pay awards for all staff.
At the start of 2024, there were some changes to Executive portfolios which resulted in the creation of new roles, namely Chief Operating Officer and Chief Marketing Officer. New salaries for these positions were informed by the benchmarking information. In September 2024, it was agreed by RHRC for the other two Senior Staff members to receive the nationally agreed pay award but given the changes that took place in early 2024 regarding the Chief Operating Officer and Chief Marketing Officer, no further pay rises were awarded to the individuals in these roles. The Chief Financial Officer received a further 2.5% pay award in March 2025.
RHRC is acutely aware of the Vice Chancellors critical role in achieving the University’s strategic objectives in an increasingly financially unstable and competitive environment and they keep any review of the Vice Chancellor remuneration under close review.
The Vice Chancellor did not receive a pay increase in the 2024-25 financial year and their salary remained at £200,000 (excluding employer pension contributions of £29,000)
The Council’s normal approach is that each year the Vice-Chancellor agrees with the Chair of Council a set of performance objectives and targets for the year. At the end of each year, the Vice-Chancellor’s performance is assessed against those objectives and targets and their performance is reviewed by the Chair of Council. The Chair provides a summary of that review to RHRC for discussion in the absence of the Vice-Chancellor. A recommendation on remuneration is then made to Council for approval, reflecting judgements by the Chair and the Committee of the Vice-Chancellor’s performance against the objectives and targets, and taking account of the University’s wider operating environment, the consequent level of challenge in the role, and the University’s position in the higher education sector. On this basis, the University’s Council can be confident that the Vice-Chancellor’s remuneration package was appropriate.
The Vice-Chancellor is not provided by the University with any accommodation or a car. The emoluments of the Vice-Chancellor are provided in Note 8 of the financial statements.
The University calculates pay ratios according to the guidance issued by the Universities and Colleges Employers Association (UCEA). The methodology is informed by multiple pay reporting requirements in the public sector which were implemented following the Hutton Review of Fair Pay in the Public Sector (2011).
The pay ratio in 2024-25 between the total annualised pay of the Vice-Chancellor and the median full-time equivalent of the University Group workforce was 5.98. In 2023-24 the ratio was 4.79.
RHRC has delegated authority from Council to approve the remuneration, terms and conditions of employment and all other benefits of all Senior Staff (with the exception of the Vice-Chancellor). As referenced in the University’s articles, Senior Staff are defined as the Vice-Chancellor, the Deputy and Pro Vice-Chancellors, the Secretary, the Chaplain and the holders of such other senior posts as the Council shall from time to time determine as provided by these Articles. The other members of Senior Staff during 2024-25 (excluding the Vice-Chancellor) were as follows:
There is a robust and consistent process for setting objectives and assessing each member of Senior Staff’s contribution to the performance of the University and the achievement of its strategic objectives. No individual, including the Vice-Chancellor, is involved in deciding their own remuneration, including any discretionary performance-related element if applicable.
The table in Note 7 of the financial statements provides information concerning the number of staff with a basic salary of over £100,000 per annum, broken down into bands of £5,000. This table includes staff members who are not Senior Staff.
The University’s standard contract of employment confirms that all staff on full-time contracts (including Senior Staff) are required to devote their full time, attention and abilities to their duties during their working hours and to act in the best interests of the University at all times. Accordingly, all staff must not, without the written consent of the University, undertake any employment or engagement that might interfere with the performance of their duties or conflict with the interests of the University.
Every staff member is therefore required to notify their manager of any employment or engagement which they intend to undertake whilst in the employment of the University. The manager (including the Chair of Council in the case of the Vice-Chancellor) will then confirm whether the employment or engagement is permissible.
The University’s position on these matters for Senior Staff, including on the retention of income derived from external activities, is described in the Policy for Senior Staff on External Activities.
The University has a single published scheme for expenses that applies to all staff. View the University Staff Expenses Policy. RHRC receives an annual assurance that the scheme is operating effectively.
The University is incorporated as a private company limited by guarantee and is an exempt charity under the terms of the Charities Act 2011. Its objects, powers and framework of governance are set out in the Articles of Association, as approved by the University Council on 11 May 2021. The Articles set out the requirements, and define the responsibilities of Council and Academic Board, alongside the responsibilities of the Vice-Chancellor and Senior Staff. The University conducts its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership). The University’s Council has adopted the Committee of University Chairs’ (CUC) Higher Education Code of Governance (2020). The University, and its Council, is committed to best practice in all aspects of corporate governance and operates in line with the public interest governance principles as articulated by the Office for Students (OfS) in the ‘Regulatory framework for higher education in England’.
Council is the governing body of the University, responsible for setting the general strategic direction of the institution, for ensuring proper accountability, and for the strategic oversight of its finances, property and investments and the general business of the University. Council has a membership of 20: a majority of whom are non-executive and independent, together with student and staff representatives (both academic and non-academic) and the Vice-Chancellor. Members of Council are only appointed after demonstration that they satisfy the definition of ‘fit and proper persons’ as articulated by the OfS in the ‘Regulatory framework for higher education in England’.
The roles of Chair and Vice-Chair of Council are separated from the role of the University’s Chief Executive, the Vice- Chancellor. The responsibilities specifically reserved to the Council are set out in the Articles of Association of the University and further elaborated in the Statement of Primary Responsibilities and Scheme of Delegation.
In the conduct of its formal business, in addition to an annual strategic away day, the Council meets five times a year. The Council recognises that, in accordance with best practice recommended in the CUC Higher Education Code of Governance, regular reviews of the effectiveness of the Governing Body should be undertaken, and in June 2024 initiated its latest external review of governance arrangements. The draft governance effectiveness review report, prepared by GGI, was reported to Council at its November 2024 meeting. The headlines were reported as:
The GGI report set out 15 recommendations, and Council approved an action plan for implementation of actions to address the matters raised. The report has been published on the University website and is publicly available.
Council and external stakeholders should be assured that the University is compliant with the regulatory requirements and that in all its essentials the University is well governed and effectively led.
The formally constituted committees of Council are Audit and Risk Committee, Finance and General Purposes Committee, Governance and Nominations Committee, Remuneration and Human Resources Committee, and the Council, Foundation, and Chaplaincy Committee. The Scheme of Delegations further details the specific delegated powers of these committees. All these documents may be found on the University Council webpage.
The Academic Board is the academic authority of the University and draws its membership from the staff and students of the University. Its principal role is to direct and regulate the teaching and learning and research work of the University and to advise Council accordingly. The Academic Board and Council hold an annual joint meeting. The Vice-Chancellor is Chair of the Academic Board. A member of Council is appointed from amongst the members of Academic Board, and the Member of Academic Staff elected to Council is also ex officio a member of Academic Board.
Audit and Risk Committee has responsibility for monitoring the effectiveness of the University’s risk management, control and governance arrangements, along with the arrangements to promote economy, efficiency and effectiveness throughout the institution, and advises the Council accordingly. The Committee exercises oversight over internal audit arrangements, including recommending the appointment of internal auditors. It considers internal audit reports and recommendations for the improvement of the University’s systems of internal control, together with management’s responses and implementation plans. The Committee also exercises oversight over external audit arrangements, such as the nature, scope and effectiveness of the process, and considers the audit aspects of the institution’s financial statements. It also advises the Council on the appointment of external auditors. In accordance with recommended practice, the Committee, which met four times during the year, provides the opportunity at each meeting for members to meet with the internal and/or external auditors without officers of the University present.
The Strategic Risks as identified and managed closely by the University Leadership Group, with oversight from the Audit and Risk Committee, are focused on:
The University’s approach to risk management is further described in the Statement of Internal Control in Section 5.8.
Finance and General Purposes Committee is responsible for monitoring and advising Council on the financial health of the University, including the financial strategy, budget setting, annual accounts, investment activity, and consideration of capital expenditure and estates development. The Committee also has responsibility for monitoring institutional level Key Performance Indicators (KPIs) in order to measure and monitor University performance against agreed strategies and targets.
Governance and Nominations Committee is responsible for a range of governance related issues including recommendations to Council on the appointment of new independent members and the spread of skills and experience of all Council Members. The Committee monitors and reviews the development and implementation of good governance practice, including oversight of the test to determine that Council Members are ‘fit and proper persons’ within the meaning defined by the Office for Students.
Remuneration and Human Resources Committee is responsible for the development of remuneration and reward policies for Senior Staff together with terms and conditions of employment for such staff, and for discussion of Human Resources Strategy for all staff. Further details are included in Section 4.2. One of the recommendations of the GGI report, was that the status of the Council, Foundation, and Chaplaincy Committee (which oversees those aspects of the University’s mission and objects relating to its Anglican identity) should One of the recommendations of the GGI report, was that the status of the Council, Foundation, and Chaplaincy Committee (which oversees those aspects of the University’s mission and objects relating to its Anglican identity) should be revisited. Governance and Nominations Committee agreed that the group should become a liaison group and meet bi-annually.
In accordance with the Companies Act 2006 and Articles of Association, the Council is responsible for the administration and management of the affairs of the University and is required to present audited financial statements for each financial year.
The Council of which are also the directors of the University for the purposes of company law) is responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Council to prepare financial statements for each financial year. Under that law, the Council is required to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland’. In addition, the Council is required to prepare the financial statements in accordance with the Office for Student (‘OfS’) Accounts Direction (issued October 2019), the OfS Terms and conditions of funding for higher education institutions (issued July 2024) and the terms and conditions of its the funding agreement with UK Research and Innovation (including Research England), the Education & Skills Funding Agency and the Department for Education through its accountable officer. Under company law, the Council must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the University and the Group and of the surplus or deficit, gains and losses, changes in reserves and cash flows of the University and the Group for that year.
In preparing the financial statements, the Council is required to:
The Council is responsible for keeping adequate accounting records that are sufficient to show and explain the University’s transactions and disclose with reasonable accuracy at any time the financial position of the University and enable it to ensure that the financial statements comply with the OfS Terms and conditions of funding for higher education institutions (issued July 2024), the Statement of Recommended Practice – Accounting for Further and Higher Education, 2019 Edition, the OfS Regulatory Advice 9: Accounts Direction (issued October 2019) and the Companies Act 2006. They are also responsible for safeguarding the assets of the University and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The members of Council have taken reasonable steps to:
The Council is responsible for the maintenance and integrity of the corporate and financial information included on the University’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Council confirm that:
As the governing body of the University of Gloucestershire, the Council recognises that it has responsibility for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives, whilst safeguarding the public and other funds and assets for which it is responsible, in accordance with the responsibilities assigned to Council in the Articles of Association and the expectations of the Office for Students as provided in the ‘Regulatory framework for higher education in England’.
The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness.
The system of internal control is based on an ongoing review process designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks, and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 July 2025 and up to the date of approval of the financial statements.
The University keeps its Risk Management Policy and Procedures under review in order to better recognise and manage the risks it faces in the delivery of its strategic aims. The risk framework is aligned with the University’s Strategic Plan. It has been designed to cover all risks including governance, management, quality, reputational and financial, whilst focusing on the most important risks. The risk register provides an appraisal of the current and projected position for each risk, including a likelihood/impact matrix. A detailed reporting schedule is in place to ensure that the relevant information is reviewed and reported in a timely manner to appropriate audiences including the University Leadership Group, Audit and Risk Committee, and Council. The University’s approach to risk management is periodically considered by the internal auditors, whose most recent review concluded that the controls upon which the University relies to manage risk are suitably designed, consistently applied and effective.
Risk management is fully incorporated into the corporate planning and decision-making processes of the institution and informs the work undertaken by Internal Audit. The University Leadership Group has a standing agenda item to review all key risks, to report on progress of action plans that introduce new mitigations, risk trajectories, and projected risk. While the identification of new and emerging risks may occur at any point during the year, an annual risk workshop is held at the start of the academic year to refresh the Risk Register. It has been embedded at school and department level by ensuring that the annual planning cycle includes a review of the risks facing each unit, together with clear mitigation plans, closely aligned with institutional level risks. Each School and Department has revised its own risk register to align with the institutional framework so that there is a clear link between the risks reported at an institutional level and at a school or departmental level. Detailed business continuity and disaster recovery plans, both at an institutional and a school or departmental level, are also in place.
In addition to this, Council oversees the University’s performance in meeting its strategic objectives through the approval and monitoring of the annual Strategy Delivery Plan. Regular updates on performance are presented to Council during the year in the Vice-Chancellors report to Council, and a year-end report considered in October.
The Council has responsibility for reviewing the effectiveness of the institution’s systems of internal control and, via the Audit and Risk Committee, conducts an annual review of these. Council considers the plans and strategic direction of the University and receives reports from the Chair of Audit and Risk Committee concerning internal control and has access to the minutes of Audit and Risk Committee meetings. The Audit and Risk Committee receives regular reports from the internal audit, which includes an independent opinion on the adequacy and effectiveness of the University’s system of internal control together with recommendations for improvement. The internal auditors’ annual opinion on the internal control environment is taken into account by Audit and Risk Committee in preparing its own opinion on internal control. The review of the effectiveness of the system of internal control is also informed by the work of the Executive Group within the University, who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external auditors in their management letter and other reports.
In September 2018, the University successfully achieved registration with the Office for Students, without any specific conditions being applied to its registration. This registration has been maintained consistently since.
Council is of the view that the University has an appropriate framework for delivering assurance to the governing body on key aspects of governance, risk management and internal control, and that there is clarity in terms of the respective roles of the Audit and Risk Committee, Finance and General Purposes Committee and Council and how internal audit interfaces with these bodies.
The Council Members of the university consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the University (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Act) in the decisions taken during the year ended 31 July 2025.
The success of the University is reliant on the support of all of our stakeholders. It is important to us that we build positive relationships with stakeholders that share our values, and working together towards shared goals assists us in delivering long-term sustainable success.
Consequences of any decision in the long term
The Council understands the importance of considering both the short-term and long-term goals as well as the risks that may be encountered to achieve these.
To support these considerations, the University prepared a Finance Strategy for 2022-2025 and a Strategic Plan for 2022- 2027. Additional information on these, along with consideration of the specific risks the university is managing can be found within Section 1.7 of our Operating and Financial Review.
Employees
Our people are key to our success and we want them to be successful individually and as a team. There are many ways we engage with and listen to our people including staff engagement surveys, regular updates from the Vice-Chancellor through termly all staff briefings, coffee catch ups and fortnightly leadership blogs. We have also set up a Women’s network, a Pride network a Global Majority and Neuro Diverse network in addition to the Equality, Diversity and Inclusion Committee. The University’s EDI policy relates to all staff and students, and protected characteristics. The University is a Disability Confident Leader, we guarantee an interview to any applicant with a disability who has met the essential criteria and we proactively implement reasonable adjustments to support candidates and employees. It is important to us that all our staff members feel fully supported and we provide them with access to an Employee Assistance Programme which offers confidential support for any issues they may encounter.
Business relationships: Students
Students are the key to everything we do. Our new strategic plan for the period 2022-2027 focuses several of its goals on students and the service/support that they need. In particular, three of the University’s strategic goals are to provide an outstanding quality of education, support for student wellbeing, and the promotion of career success. Students are able to meet with the Student Union on a monthly basis and there are termly ‘Voice it to the VC’ sessions which help provide the support students need.
Suppliers
It is important for the university to obtain the best terms and best value for all of its business activities and the Council recognises that relationships with suppliers are important to long-term success and as such we work to build strong relationships to develop mutually beneficial and lasting partnerships.
Impact on communities and the environment
As mentioned within our Operating and Financial Review, one of our key strategic priorities is to build partnerships which create opportunity, innovation and mutual benefit for the communities we serve. The University continues to engage with its very local communities through facilitating ‘Community Liaison Groups’ linked with each of its campus sites, as well as the Pittville Student Village.
Our annual BSI ISO14001 external reassessment audit of our Environmental Management System took place in June 2023 and resulted in a successful outcome. The auditors recommended to the British Standards Institute that the University be re-certified for the period September 2023 to September 2026.
Maintaining high standard of business conduct
It is important for the University to comply with relevant laws and regulations, including the specific expectations of the Office for Students, the regulator for providers of higher education in England, as well as statutory matters including health and safety. The Council is updated regularly on legal and regulatory developments and takes these into account when considering future plans.
The University conducts its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership) and ensures all members of the Executive and Council meet the definition of the Office for Students of a ‘fit and proper’ person. Further details on this and the other ways in which the University ensures it maintains a high standard of business conduct can be found within Section 7 ‘Corporate Governance’ of our Operating and Financial Review.
The Operating and Financial Review and the S172 Statement of Council Members set out on pages 4-27 was approved by the Council of the University of Gloucestershire on 25th November 2025, and was signed on its behalf by:
Nicola de Iongh
Chair of Council
Clare Marchant
Vice-Chancellor
We have audited the financial statements of the University of Gloucestershire (the ‘parent University’) and its subsidiaries (the ‘group’) for the year ended 31 July 2025, which comprise Consolidated and University Statement of Comprehensive Income and Expenditure, Consolidated and University Statement of Changes in Reserves, Consolidated and University Balance Sheet, Consolidated and University Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the group and the parent University in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s and the parent University’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the group or the parent University to cease to continue as a going concern.
In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the group’s and the parent University’s business model including effects arising from macro-economic uncertainties such as fixed tuition fees for UK students and an increase in national insurance rates, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the group’s and the parent University’s financial resources or ability to continue operations over the going concern period.
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the parent University’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors’ with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual report, other than the financial statements and our auditor’s report thereon. The Council is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
In our opinion, in all material respects:
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
We have nothing to report in respect of the following matters where the OfS Accounts direction requires us to report to you where:
As explained more fully in the Statement of responsibilities of the Council in Section 5.6, the Council (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Council are responsible for assessing the group’s and the parent University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council either intends to liquidate the group or the parent University or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
This report is made solely to the University’s Council, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the University’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the University’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Stephen Dean BA(Hons) FCA DChA
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
26 November 2025
The University of Gloucestershire is incorporated as a private company limited by guarantee and is an exempt charity under the terms of the Charities Act 2011. As an exempt charity it is not required to be registered with the Charity Commission but is however subject to the Charity Commission’s regulatory powers which are monitored by the Office for Students.
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (FRS 102) and in accordance with the Statement of Recommended Practice – Accounting for Further and Higher Education issued in 2019 (2019 SORP). These financial statements are prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.
The financial statements are presented in Sterling (£).
The group financial statements consolidate the financial statements of the University of Gloucestershire and all its subsidiary undertakings drawn up to 31 July each year.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Estimates are based on historical experience and other assumptions that are considered reasonable in the circumstances. The actual amount or values may vary in certain instances from the assumptions and estimates made. Changes will be recorded, with corresponding effect in profit or loss, when, and if, better information is obtained.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in material adjustment within the next financial year are included below.
Critical judgements that management has made in the process of applying accounting policies disclosed herein and that have a significant effect on the amounts recognised in the financial statements relate to the following:
Finance Lease
The University has entered into an agreement with Aspire Student Living Gloucester Limited, previously known as Cityheart (Gloucester) Limited who operate student residences in Gloucester. The residences are being funded by Aviva Investors. Under the terms of the contractual arrangements, if Aspire Student Living Gloucester Limited default on their lease with Aviva Investors, the University will inherit a liability. Having considered all the contractual arrangements and obligations, management consider that this arrangement falls within the definition of a finance lease as set out in FRS 102. In the judgement of management, as the University is only guaranteeing the overriding contract and not the individual rentals, there are no guaranteed amounts and therefore no value can be attributed to an asset or liability on the balance sheet. Management will continue to monitor progress on the contract and assess the need to recognise any ongoing liabilities, should they arise. A contingent liability for any future financial obligation will be recognised when the possibility of an outflow of future resources is no longer considered to be remote.
Operating Lease
The University has entered into an agreement with Gloucester County Council to lease space at the City Campus (formerly Debenhams) to accommodate the City Library for a period of 25 years. Having considered all the contractual arrangements and obligations, management consider that this arrangement falls within the definition of an operating lease as set out in FRS102.
Provisions
In recognising provisions, the company evaluates the extent to which it is probable that it has incurred a legal or constructive obligation in respect of past events and the probability that there will be an outflow of benefits as a result. The judgements used to recognise provisions are based on currently known factors which may vary over time, resulting in changes in the measurement of recorded amounts as compared to initial estimates.
Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss as a result of any indications. If there is an indication of impairment, the recoverability amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount and an impairment loss is recognised immediately in the period it arises. The recoverable amount is the higher of the assets fair value less costs to sell and its value in use. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised immediately in the period it arises.
Recoverability of debtors
The provision for bad debts is based on our estimate of the expected recoverability of those debts. Assumptions are made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The provision is based on the current situation of the customer, the age profile of the det and the nature of the amount due.
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The results of the University’s subsidiary undertakings, and undertakings in which it has a controlling interest, have been consolidated in the financial statements and details of these are provided in note 16 to the accounts.
The consolidated financial statements do not include the results of the University of Gloucestershire Students’ Union as it is a separate company limited by guarantee in which the University has no financial interest, control or significant influence over policy decisions.
Government revenue grants including funding allocations from Office for Students and research grants are recognised in income over the periods in which the University recognises the related costs for which the grant is intended to compensate. Where part of a Government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.
Grants (including research grants) from non-government sources are recognised in income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as conditions are met.
Government capital equipment grants are capitalised and released to the income and expenditure account over the expected useful lives of the assets in line with the depreciation policy.
Government capital building grants are capitalised and released as follows:
Deferred income, in respect of capital grants from the Office for Students, which are attributable to subsequent financial years, is included in creditors as a deferred credit.
Other capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.
Income from the sale of goods or services is credited to the Consolidated and University statement of comprehensive income and expenditure when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.
Fee income is stated gross of any expenditure which is not a discount or fee waiver and credited to the Consolidated and University statement of comprehensive income and expenditure over the period in which students are studying. Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount.
Bursaries and Scholarships are accounted for gross as expenditure and not deducted from income.
Investment income is credited to the Consolidated and University statement of income and expenditure on a receivable basis.
Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure of the University where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.
Non exchange transactions where we receive value from a donor without providing equal value in return are donations or endowments.
Donations and endowments with donor-imposed restrictions are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.
Donations with no restrictions are recognised in income when the University is entitled to the funds.
Endowment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms of the restriction applied to the individual endowment fund.
There are four main types of donations and endowments identified within reserves:
Fixed Assets are stated at cost or deemed cost less accumulated depreciation and accumulated impairment losses.
Freehold Land and Buildings
Certain freehold land and buildings that had been revalued to fair value on or prior to the date of transition to the 2015 HE SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.
Leasehold Land and Buildings
Leasehold land and buildings are included at cost.
Additions to freehold and leasehold land and buildings are capitalised at cost.
Plant and Equipment
Expenditure on all plant and equipment is capitalised where the individual cost of items exceeds £5,000, or if an item is a component of a larger asset or programme.
Depreciation is calculated so as to write off the cost or valuation of tangible fixed assets less their estimated residual values on a straight-line basis over the expected useful economic lives of the assets concerned.
In calculating depreciation, buildings acquired before 1 August 2006 are considered to have a residual value of 50% of cost to reflect an ongoing maintenance and repair programme.
New buildings commissioned post 1 August 2006 are considered to have a nil residual value with the full cost written off in accordance with the component life cycle methodology for depreciation. The lives used for this purpose are:
| Pre July 2006 acquisitions | Post July 2006 acquisitions | ||
|---|---|---|---|
| Freehold and Leasehold Land and Buildings: | |||
| Freehold land | NIL | NIL | |
| Buildings | Listed | 100 years | 100 years |
| Buildings | Other and unlisted | 50 years | Component life 10-50 years |
| Buildings | Major adaptations | 10-25 years | Component life 5-40 years |
| Plant | Up to 1994-1995 | 10 years | |
| Plant | From 1994-1995 | 20 years | Component life 10-30 years |
| Equipment: | |||
| Apparatus and equipment | 5 years | 5 years | |
| Computer equipment | 3 years | Component life 3-10 years | |
| Motor vehicles | 5 years | 5 years | |
| Furniture, fixtures and fitting | 10 years | Component life 10-15 years |
A review for potential indicators of impairment is carried out at each reporting date. If events or changes in circumstances indicate that the carrying amount of the property, plant and equipment may not be recoverable, a calculation of the impact is completed and arising impairment values charged against the asset and to the SOCIE.
Impairments of assets are calculated as the difference between the carrying value of the asset and its recoverable amount, if lower.
Recoverable amount is defined as the higher of fair value less costs to sell and the estimated value in use at the date the impairment review is undertaken.
Assets classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell, as defined above. Assets are classified as held for sale if their carrying amount will be recovered or settled principally through a sale transaction rather than through continuing use. This condition is regarded as being met only when the sale is highly probable and the assets are available for immediate sale in their present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year.
No depreciation is charged on assets classified as held for sale.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty.
Cash equivalents are short term (maturity being less than three months from the placement date), highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.
Effective from 1 August 2007, the University became a Company Limited by Guarantee and an exempt charity within the meaning of Schedule 3 of the Charities Act 2011. It is therefore a charity within the meaning of Paragraph 1 of Schedule 6 to the Finance Act 2010 and accordingly, the University is therefore potentially exempt from taxation in respect of income and capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied to exclusively charitable purposes.
Value Added Tax on purchases exceeds Value Added Tax on sales. However, because of the VAT status of education, the University’s principal supply, the difference is generally not reclaimable and is, therefore, a cost of the University.
Fullwood Park Limited and University of Gloucestershire Professional Services Limited are liable for UK corporation tax. The companies have agreed to pay the lower of their accounting and tax profits to the University of Gloucestershire, which is an exempt charity, under corporate gift aid regulations introduced in April 2000.
Fullwood Park Limited is registered for VAT.
Both the University and University of Gloucestershire Professional Services Limited are part of the same VAT group.
Financial assets and liabilities are recognised when the Institution becomes party to the contractual provision of the instrument and they are classified according to the substance of the contractual arrangements entered into.
A financial asset and a financial liability are offset only when there is a legally enforceable right to set off the recognised amounts and an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets
Basic financial assets include trade and other debtors, cash and cash equivalents, intercompany debtors and investments in commercial paper (i.e. deposits and bonds). These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rate method. Financial assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the statement of comprehensive income.
For financial assets carried at amortised cost the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows, discounted at the asset’s original effective interest rate.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates, or joint ventures are initially measured at fair value, which is typically the transaction price. These assets are subsequently carried at fair value and changes in fair value at the reporting date are recognised in the statement of comprehensive income. Where the investment in equity instruments are not publicly traded and where the fair value cannot be reliably measured the assets are measured at cost less impairment.
Financial assets are de‑recognised when the contractual rights to the cash flows from the asset expire or are settled or substantially all of the risks and rewards of the ownership of the asset are transferred to another party.
Financial liabilities
Basic financial liabilities include trade and other creditors and bank loans. These liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest rate method.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non‑current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.
Financial liabilities are de‑recognised when the liability is discharged, cancelled, or expires.
Fixed and endowment asset investments are included in the balance sheet at market value. Where no market value for an investment asset can be readily ascertained, the investment is stated at cost except where a permanent diminution of value has taken place.
Investments in jointly controlled entities, associates and subsidiaries are carried at cost less impairment in the University’s accounts.
Current asset investments are held at fair value with movements recognised in the surplus or deficit.
Costs or income received in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.
Leasing agreements, which transfer to the University substantially all the benefits and risks of ownership of an asset, are treated as if the asset had been purchased outright, and classified as finance leases.
Leased assets acquired by way of finance lease and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at the inception of the lease.
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the outstanding balance of the lease.
The University uses derivative financial instruments such as interest rate swaps to reduce exposure to interest rate movements on its loans. Such derivative financial instruments are not held for speculative purposes and relate to actual liabilities, changing the nature of the interest rate by converting a variable rate to a fixed rate. Interest differentials under these swaps are recognised by adjusting net interest payable over the periods of the contracts.
Any derivative financial instruments are held on the balance sheet at fair value with movements in fair value recorded in the Surplus or Deficit.
Retirement benefits to employees of the University are provided by Defined Benefit Schemes, which are funded by contributions from the University and employees. Payments are made to the Teachers’ Pension Scheme, the Universities Superannuation Scheme (USS) for academic staff, The Church of England Funded Pensions Scheme (CEFPS) for Clerical staff and to the Gloucestershire Local Government Pension Scheme for non-academic staff. These are independently administered schemes. Contributions to the Schemes are recognised as an expense in the year to spread the cost of the pensions over the employees’ working lives with the University.
Changes to the funding of the Schemes arising from changes in legislation or from fund performance, or from changes in membership or other composition of the Schemes, are recognised at each Scheme actuarial valuation. Adjustments to Scheme funding, if any, and employers’ contributions to the Schemes which follow actuarial valuations, will address any shortfall or surplus arising from that valuation.
The University has adopted in full the requirements of FRS 102 for the Local Government Pension Scheme.
The USS and CEFPS are multi-employer schemes for which it is not possible to identify the assets and liabilities to the University for members due to the mutual nature of the schemes and therefore these are accounted for as defined contribution retirement benefit schemes. A liability is recorded within provisions for any contractual commitment to fund past deficits in accordance with the latest agreed deficit funding plan.
The TPS is a multi-employer unfunded scheme for which it is not possible to identify the assets and liabilities to the University for members due to the mutual nature of the scheme and therefore this is also accounted for as a defined contribution retirement benefit scheme. Employers have recently been advised of increases from Sept 2019 onwards.
Retirement benefits to employees of the University subsidiary company UOGPSL are provided by a Defined Contribution Scheme, Legal & General (L&G) which are funded by contributions from the University and employees.
The L&G scheme is a defined contribution plan, a post-employment benefit plan under which UoGPSL pays fixed contributions into a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the year during which services are rendered by employees.
Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.
Expenditure on routine corrective maintenance is charged to the income and expenditure account as it is incurred.
Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at year-end rates. The resulting exchange differences are dealt with in the determinations of income and expenditure for the financial year.
Provisions are recognised when the University has a present legal or constructive obligation as a result of a past event and it is probable that a transfer of economic benefit will be required to settle the obligation and that a reliable estimate can be made of the amount of the obligation.
A contingent liability arises from a past event that gives the University a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.
A contingent asset arises where an event has taken place that gives the institution a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University.
Contingent assets and liabilities are not recognised in the Statement of Financial Position but are disclosed in the notes.
Interest and finance charges for capitalised projects are written off to the income and expenditure account during the period of construction and thereafter.
The University regularly considers its debt book for recoverability of debtors by means of review of internal data and from information provided by its collecting agent. Arising from this review, the University makes provision for bad and doubtful debts based on both specific cases and a formula basis related to the age of outstanding debt including the related assets on the balance sheet and estimated recoverable amount.
Fixed assets held under service concession arrangements are recognised on the balance sheet at the present value of the minimum lease payments when the assets are brought into use with a corresponding financial liability.
Payments under the service concession arrangement are allocated between service costs, finance charges and financial liability repayments to reduce the financial liability to nil over the life of the arrangement.
Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity. Other restricted reserves include balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.
| Notes | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 | |
| Income | £000 | £000 | £000 | £000 | |
| Funding body grants | 1 | 7,158 | 7,570 | 7,158 | 7,570 |
| Tuition fees and education contracts | 2 | 62,545 | 67,298 | 62,545 | 67,298 |
| Research grants and contracts | 3 | 4,138 | 2,513 | 4,138 | 2,513 |
| Other income | 4 | 9,071 | 9,000 | 9,126 | 9,017 |
| Investment income | 5 | 729 | 1,491 | 713 | 1,445 |
| Donations and endowments | 6 | 11 | 11 | 20 | 17 |
| Total income | 83,652 | 87,883 | 83,700 | 87,860 | |
| Expenditure | |||||
| Staff costs | 8 | 53,199 | 53,383 | 49,212 | 49,938 |
| Restructuring costs | 8 | 410 | 2,018 | 410 | 2,018 |
| Depreciation of tangible fixed assets | 14 | 5,978 | 6,212 | 5,978 | 6,212 |
| Other operating expenses | 9 | 24,282 | 23,353 | 28,309 | 26,817 |
| Interest and other finance costs | 10 | 845 | 1,012 | 845 | 1,013 |
| Total expenditure | 11 | 84,714 | 85,978 | 84,754 | 85,998 |
| (Deficit)/surplus before other gains/(losses) | (1,062) | 1,905 | (1,054) | 1,862 | |
| Gain on investments | 63 | 160 | 12 | 137 | |
| Gain on disposal of fixed assets | 133 | 4 | 133 | 4 | |
| (Deficit)/surplus before tax | (866) | 2,069 | (909) | 2,002 | |
| Taxation | 13 | – | – | – | – |
| (Deficit)/surplus for the year | (866) | 2,069 | (909) | 2,002 | |
| Other comprehensive (losses)/income | |||||
| Actuarial loss in respect of pension schemes | 35 | (2,341) | (1,545) | (2,341) | (1,545) |
| Currency translation differences | 4 | (8) | 4 | (8) | |
| Total comprehensive (deficit)/surplus for the year | (3,203) | 516 | (3,246) | 449 | |
| Represented by: | |||||
| Endowment comprehensive (loss)/gain for the year | (60) | (60) | 81 | 124 | |
| Restricted comprehensive gain/(loss) for the year | 3 | 3 | (1) | (5) | |
| Unrestricted comprehensive (loss)/gain for the year | (3,146) | 573 | (3,326) | 330 | |
| (3,203) | 516 | (3,246) | 449 | ||
| (Deficit)/surplus for the year attributable to the University | (866) | 2,069 | (909) | 2,002 |
All items of income and expenditure related to continuing activities
| Consolidated | |||||
| Income and expenditure account | Revaluation | Total | |||
| Endowment | Restricted | Unrestricted | Reserve | ||
| £000 | £000 | £000 | £000 | £000 | |
| Balance at 1 August 2023 | 3,076 | 28 | 92,464 | – | 95,567 |
| Surplus/(Deficit) from the statement of comprehensive income | 178 | (5) | 1,896 | – | 2,069 |
| Other comprehensive loss | – | – | (1,547) | – | (1,547) |
| Total comprehensive income/(loss) for the year | 178 | (5) | 348 | – | 521 |
| Balance at 1 August 2024 | 3,254 | 23 | 92,811 | – | 96,088 |
| (Deficit)/Surplus from the statement of comprehensive income | 123 | (1) | (988) | – | (866) |
| Other comprehensive loss | – | – | (2,337) | – | (2,337) |
| Total comprehensive (loss)/income for the year | 123 | (1) | (3,325) | – | (3,203) |
| Balance at 31 July 2025 | 3,377 | 22 | 89,486 | – | 92,885 |
| University | |||||
| Income and expenditure account | Revaluation | Total | |||
| Endowment | Restricted | Unrestricted | reserve | ||
| £000 | £000 | £000 | £000 | £000 | |
| Balance at 1 August 2023 | 2,456 | 28 | 92,471 | – | 94,955 |
| Surplus/(Deficit) from the statement of comprehensive income | 121 | (5) | 1,886 | – | 2,002 |
| Other comprehensive loss | – | – | (1,547) | – | (1,547) |
| Total comprehensive income/(loss) for the year | 121 | (5) | 338 | – | 455 |
| Balance at 1 August 2024 | 2,578 | 23 | 92,810 | – | 95,411 |
| Surplus/(deficit) from the statement of comprehensive income | 81 | (1) | (989) | – | (909) |
| Other comprehensive loss | – | – | (2,337) | – | (2,337) |
| Total comprehensive (loss)/income for the year | 81 | (1) | (3,326) | – | (3,246) |
| Balance at 31 July 2025 | 2,659 | 22 | 89,484 | – | 92,165 |
| Consolidated | Consolidated | University | University | ||
| 2025 | 2024 | 2025 | 2024 | ||
| Notes | £000 | £000 | £000 | £000 | |
| Non-current assets | |||||
| Fixed assets | 14 | 177,925 | 162,209 | 177,925 | 162,209 |
| Investments | 16 | 2,998 | 2,816 | 2,339 | 2,219 |
| 180,923 | 165,025 | 180,264 | 164,428 | ||
| Current assets | |||||
| Stocks | 58 | 86 | 58 | 86 | |
| Debtors | 17 | 24,733 | 22,443 | 24,991 | 22,656 |
| Investments | 18 | 7,473 | 16,002 | 7,473 | 16,002 |
| Cash and cash equivalents | 30 | 1,485 | 2,090 | 982 | 1,595 |
| 33,749 | 40,621 | 33,504 | 40,339 | ||
| Creditors: amounts falling due within one year | 19 | (60,343) | (48,654) | (60,159) | (48,453) |
| Net current liabilities | (26,594) | (8,033) | (26,655) | (8,114) | |
| Total assets less current liabilities | 154,329 | 156,992 | 153,609 | 156,314 | |
| Creditors: amounts falling due after more than one year | 20 | (60,679) | (60,034) | (60,679) | (60,034) |
| Provisions | 22 | ||||
| Pension provisions | (542) | (664) | (542) | (664) | |
| Other provisions | (223) | (206) | (223) | (206) | |
| Total net assets | 92,885 | 96,088 | 92,165 | 95,411 | |
| Restricted reserves | |||||
| Income and expenditure reserve – endowment fund | 23 | 3,377 | 3,253 | 2,659 | 2,578 |
| Income and expenditure reserve – restricted reserve | 24 | 22 | 23 | 22 | 23 |
| Unrestricted reserves | |||||
| Income and expenditure reserve – Unrestricted | 89,486 | 92,812 | 89,484 | 92,810 | |
| Total reserves | 92,885 | 96,088 | 92,165 | 95,411 |
The Financial Statements were approved by the Council of the University of Gloucestershire on 25 November 2025, and were signed on its behalf by:
Nicola De Iongh
Chair of Council
Clare Marchant
Vice-Chancellor
Company number: 06023243
| Notes | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 | |
| £000 | £000 | £000 | £000 | ||
| Cash flow from operating activities | |||||
| (Deficit)/surplus for the year before tax | (866) | 2,069 | (909) | 2,002 | |
| Adjustment for non-cash items | |||||
| Depreciation | 14 | 5,978 | 6,212 | 5,978 | 6,212 |
| Gain on investments | (63) | (160) | (13) | (137) | |
| Decrease/(increase) in stock | 29 | (26) | 30 | (26) | |
| (Increase)/decrease in debtors | 18 | (2,288) | 5,527 | (2,334) | 5,462 |
| Increase in creditors | 20 | 9,867 | 1,858 | 9,885 | 1,736 |
| Decrease in pension provisions | 22 | (2,463) | (2,322) | (2,463) | (2,322) |
| Increase/(decrease) in other provisions | 22 | 17 | (73) | 17 | (73) |
| Adjustment for investing or financing | |||||
| Activities | |||||
| Investment income | (729) | (1,491) | (713) | (1,445) | |
| Interest payable | 10 | 2,335 | 1,974 | 2,335 | 1,975 |
| Endowment income | (11) | (11) | (20) | (17) | |
| Gain on sale of fixed assets | (133) | (4) | (133) | (4) | |
| Fixed asset impairment | – | (232) | – | (232) | |
| Capital grant release to income | 21 | (1,704) | (1,502) | (1,704) | (1,502) |
| Exchange gain/(loss) | 4 | (8) | 4 | (8) | |
| Net cash inflow from operating activities | 9,973 | 11,811 | 9,960 | 11,621 | |
| Cash flows from investing activities | |||||
| Capital grant receipts | 21 | 7,464 | 6,035 | 7,464 | 6,035 |
| Investments | 620 | 402 | 565 | 315 | |
| Investment income | 612 | 1,412 | 594 | 1,394 | |
| Payments made to acquire fixed assets | 14 | (26,992) | (32,542) | (26,992) | (32,542) |
| Payments made to acquire intangible fixed assets | (122) | (71) | (119) | (51) | |
| Proceeds from sales of intangible assets | 118 | 79 | 120 | 51 | |
| Proceeds from sale of fixed assets | 5,432 | 4 | 5,432 | 4 | |
| New non-current assets | 16 | (617) | (298) | (552) | (213) |
| Movement in deposits | 8,529 | 12,536 | 8,529 | 12,536 | |
| Net cash outflow from investing activities | (4,956) | (12,443) | (4,959) | (12,472) | |
| Cash flows from financing activities | |||||
| Interest paid | (2,333) | (1,954) | (2,333) | (1,954) | |
| Endowment cash received | 12 | 11 | 20 | 17 | |
| New secured loans | 1,500 | 5,000 | 1,500 | 5,000 | |
| Repayments of amounts borrowed | (4,801) | (2,935) | (4,801) | (2,935) | |
| Net cash (outflow)/ inflow from financing activities | (5,622) | 123 | (5,614) | 128 | |
| Decrease in cash and cash equivalents | 30 | (605) | (509) | (613) | (722) |
| Cash and cash equivalents at beginning of the year | 30 | 2,090 | 2,599 | 1,595 | 2,317 |
| Cash and cash equivalents at end of the year | 30 | 1,485 | 2,090 | 982 | 1,595 |
| Notes | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 | |
| £000 | £000 | £000 | £000 | ||
| 1 Funding body grants | |||||
| Recurrent grant | |||||
| Office for Students | 6,310 | 6,614 | 6,310 | 6,614 | |
| Specific grants | |||||
| Office for Students redundancy compensation | 22 | 23 | 22 | 23 | |
| Deferred capital grants | |||||
| Buildings | 21 | 557 | 573 | 557 | 573 |
| Equipment | 21 | 269 | 360 | 269 | 360 |
| 7,158 | 7,570 | 7,158 | 7,570 | ||
| 2 Tuition fees and education contracts | |||||
| Full time Home and EU students | 42,752 | 46,375 | 42,752 | 46,375 | |
| Full time International students | 13,602 | 14,752 | 13,602 | 14,752 | |
| Part time students | 1,447 | 1,417 | 1,447 | 1,417 | |
| Other (short course) fees | 4,744 | 4,754 | 4,744 | 4,754 | |
| 62,545 | 67,298 | 62,545 | 67,298 | ||
| 3 Research grants and contracts | |||||
| Research Councils | 1,019 | 1,148 | 1,019 | 1,148 | |
| UK based charities | 19 | 126 | 19 | 126 | |
| European Commission grants | 330 | (302) | 330 | (302) | |
| Other grants and contracts | 2,770 | 1,541 | 2,770 | 1,541 | |
| 4,138 | 2,513 | 4,138 | 2,513 | ||
| 4 Other income | |||||
| Residencies, catering and | |||||
| conferences | 4,817 | 4,807 | 4,817 | 4,807 | |
| Release from deferred capital grants | 878 | 569 | 878 | 569 | |
| Other services rendered | 1,032 | 773 | 1,096 | 832 | |
| Other income | 2,344 | 2,851 | 2,335 | 2,809 | |
| 9,071 | 9,000 | 9,126 | 9,017 | ||
| 5 Investment income | |||||
| Investment income on endowments | 216 | 158 | 201 | 112 | |
| Other investment income | 513 | 1,333 | 512 | 1,333 | |
| 729 | 1,491 | 713 | 1,445 | ||
| 6 Donations and endowments | |||||
| New endowments | 23 | 6 | 6 | 6 | 6 |
| Donations with restrictions | 24 | 5 | 5 | 5 | 5 |
| Unrestricted donations | – | – | 9 | 6 | |
| 11 | 11 | 20 | 17 | ||
| 7 Grant and fee income | |||||
| Grant income from the OfS | 9,531 | 6,080 | 9,531 | 6,080 | |
| Grant income from other bodies | 2,642 | 4,571 | 2,642 | 4,571 | |
| Fee income for taught awards | 58,044 | 65,435 | 58,044 | 65,435 | |
| Fee income for research awards | 4,470 | 1,799 | 4,470 | 1,799 | |
| Fee income from non-qualifying courses | 30 | 64 | 30 | 64 | |
| 74,717 | 77,949 | 74,717 | 77,949 |
All severance payments including compensation for loss of office in respect of higher paid staff are approved by RHRC Committee. Amounts for compensation for loss of office and redundancy for all other staff are approved by Executive in accordance with delegated authority. These are recognised once the University has committed to terminating employment before the normal retirement date.
Key management personnel
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University. Staff costs include compensation paid to key management personnel defined as Senior Staff for whom RHRC have oversight of pay and performance.
The university’s key management personnel consist of the following people:
Vice-Chancellor, Chief Operating Officer, Chief Marketing Officer, Chief Financial Officer.
The Chair and non-executive members of Council receive no emoluments except for the staff appointed as council members.
The above summaries should be read in conjunction with the Council statement on corporate governance.
| 9 Other operating expenses | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Consumable and non-capital items | 2,815 | 2,799 | 2,815 | 2,799 |
| Academic administration | 1,191 | 1,094 | 1,191 | 1,094 |
| Books and periodicals | 689 | 682 | 689 | 682 |
| Rents and premises | 1,830 | 1,581 | 1,824 | 1,570 |
| Heat, light, water and power | 1,541 | 2,107 | 1,541 | 2,107 |
| Repairs and general maintenance | 1,871 | 1,740 | 1,871 | 1,740 |
| Staff development and training | 137 | 231 | 137 | 231 |
| Staff travel and subsistence | 907 | 867 | 4,975 | 4,385 |
| Student travel and subsistence | 1,505 | 701 | 1,505 | 701 |
| Student bursaries | 796 | 1,182 | 792 | 1,181 |
| Marketing and agent commission | 3,889 | 4,293 | 3,889 | 4,293 |
| Postage, telephone, printing and reprographics | 392 | 403 | 392 | 403 |
| Insurance and finance | 826 | 625 | 825 | 625 |
| Professional fees and contractors | 2,758 | 2,791 | 2,750 | 2,779 |
| Course franchising and partnerships | 1,281 | 1,165 | 1,281 | 1,165 |
| Purchases for resale | 816 | 764 | 812 | 752 |
| Equipment operating lease rentals | 121 | 120 | 121 | 120 |
| Students’ Union grant | 590 | 580 | 590 | 580 |
| Fixed asset impairment | – | (232) | – | (232) |
| Other expenses | 327 | (140) | 309 | (158) |
| 24,282 | 23,353 | 28,309 | 26,817 | |
| 9 Other operating expenses (continued) | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Included within professional fees | ||||
| External auditor’s remuneration – External audit | 88 | 84 | 88 | 84 |
| External auditor’s remuneration – audit of subsidiaries | 11 | 10 | – | – |
| External auditor’s remuneration – non-audit | ||||
| Services: | ||||
| Audit related assurance services | 3 | 3 | 3 | 3 |
| Other assurance services | 6 | – | 6 | – |
| Pension scheme audit | 2 | 2 | 2 | 2 |
| Rental operating lease payments | 550 | 536 | 550 | 536 |
| 10 Interest and other finance costs | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Loan interest | 2,332 | 1,954 | 2,332 | 1,954 |
| Net charge on pension schemes | (1,490) | (962) | (1,490) | (962) |
| Movement in fair value of derivatives | 3 | 21 | 3 | 21 |
| 845 | 1,012 | 845 | 1,012 |
| 11 Analysis of total expenditure by activity | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Academic departments | 43,620 | 42,417 | 42,819 | 41,620 |
| Academic services | 9,314 | 10,354 | 8,834 | 9,826 |
| Research grants and contracts | 4,386 | 3,698 | 4,351 | 3,684 |
| Residences, catering and conferences | 5,074 | 4,360 | 5,046 | 4,319 |
| Premises | 7,833 | 8,146 | 7,372 | 7,685 |
| Administration | 16,256 | 16,798 | 18,101 | 16,658 |
| Other expenses | (1,769) | 206 | (1,769) | 206 |
| 84,714 | 85,978 | 84,754 | 85,998 | |
| 12 Access and Participation costs | 2025 | 2024 | ||
| £000 | £000 | |||
| Access investment | 1,200 | 1,376 | ||
| Financial support | 468 | 713 | ||
| Disability support (excluding expenditure included in the two categories above) | 397 | 559 | ||
| Research and Evaluation | 55 | 72 | ||
| 2,120 | 2,720 |
(i) £1,410k (2024: £1,859k) of these costs are already included in the overall staff costs figures included in the financial statements (see note 8).
(ii) Access and Participation Plan
| 13 Taxation | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Recognised in the statement of comprehensive income | ||||
| Corporation tax expense | – | – | – | – |
Factors affecting the tax charge
The tax assessed for the year is the standard rate of corporation tax in the UK. The difference is explained below:
| Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 | |
| £000 | £000 | £000 | £000 | |
| Factors affecting the tax charge | ||||
| UK corporation tax at 25% (2024: 19%) | 217 | 393 | 227 | 380 |
| Effect of: | ||||
| Surplus/deficit falling within charitable exemption | (217) | (393) | (227) | (380) |
| Total tax expense | – | – | – | – |
| 14 Tangible fixed assets | Freehold land and buildings | Leasehold land and buildings | Equipment | Assets under construction | Total |
| £000 | £000 | £000 | £000 | £000 | |
| a) Consolidated | |||||
| Cost/valuation | |||||
| At beginning of year | 153,834 | 3,247 | 33,833 | 58,741 | 249,655 |
| Additions at cost | 538 | – | 5,245 | 21,209 | 26,992 |
| Transfers at cost | 13 | – | 875 | (888) | – |
| Disposals | (10,130) | – | (1,624) | – | (11,754) |
| At year end | 144,255 | 3,247 | 38,329 | 79,062 | 264,893 |
| Depreciation | |||||
| At beginning of year | 58,999 | 2,454 | 25,993 | – | 87,446 |
| Charge for the year | 3,602 | 73 | 2,303 | – | 5,978 |
| Disposals | (4,836) | – | (1,620) | – | (6,456) |
| At year end | 57,765 | 2,527 | 26,676 | – | 86,968 |
| Net book value | |||||
| At year end | 86,490 | 720 | 11,653 | 79,062 | 177,925 |
| At beginning of year | 94,835 | 793 | 7,840 | 58,741 | 162,209 |
| b) University | |||||
| Cost/valuation | |||||
| At beginning of year | 153,834 | 3,247 | 33,833 | 58,741 | 249,655 |
| Additions at cost | 538 | – | 5,245 | 21,209 | 26,992 |
| Transfers at cost | 13 | – | 875 | (888) | – |
| Disposals | (10,130) | – | (1,624) | – | (11,754) |
| At year end | 144,255 | 3,247 | 38,329 | 79,062 | 264,893 |
| Depreciation | |||||
| At beginning of year | 58,999 | 2,454 | 25,993 | – | 87,446 |
| Charge for the year | 3,602 | 73 | 2,303 | – | 5,978 |
| Disposals | (4,836) | – | (1,620) | – | (6,456) |
| At year end | 57,765 | 2,527 | 26,676 | – | 86,968 |
| Net book value | |||||
| At year end | 86,490 | 720 | 11,653 | 79,062 | 177,925 |
| At beginning of year | 94,835 | 793 | 7,840 | 58,741 | 162,209 |
c) Revaluation of land and buildings
Land and buildings were revalued at 31 July 1997 by Bayley Donaldsons, Independent Chartered Surveyors. Certain properties, included in freehold land and building costs and earmarked for disposal under the building programme, were valued on an estimated open market value basis. The remaining land and buildings to be retained for use and occupation by the University have principally been valued at depreciated replacement cost in existing use. The likely replacement cost of buildings, which are listed as being of special architectural and historic interest has been calculated on the basis of reinstating the buildings, as originally designed and constructed. Those buildings, which due to their special nature, are rarely, if ever, sold on the open market, have been valued at depreciated replacement cost. This basis is considered appropriate as it reflects the fact that listed buildings and buildings of this specialised nature cannot be replaced with simpler and less expensive buildings.
In the opinion of the valuers at the time of the valuation, depreciated replacement cost valuations for buildings on the above described basis are higher than an open market value for alternative use rather than existing use.
Under the terms of the financial memorandum with the Office for Students, the proportion of the proceeds on sale of assets attributed to the publicly funded assets is retained by the University only with the approval of the Office for Students. All proceeds of sale retained by the University are required under Charities law to be re-invested in full in new capital assets.
Freehold land at Oxstalls, The Folley and Hardwick was revalued as at 1 August 2014 by Bruton Knowles, Independent Chartered Surveyors.
If both freehold and leasehold land and buildings had not been revalued before being deemed as cost on transition, and on the assumption that the assets transferred from the Gloucestershire County Council were at nil cost, they would have been included at the following historical cost amounts:
| Consolidated and University | ||
| Land and buildings | ||
| 2025 | 2024 | |
| £000 | £000 | |
| Cost | 127,999 | 137,101 |
| Aggregate depreciation based on cost | 43,453 | 45,799 |
15 Service concession arrangements
The University has one service concession arrangement where service delivery has commenced. On 21 January 2016 the University entered a 46-year contract with a third-party provider for the creation of a student village at Pittville to include the refurbishment of existing student accommodation to house 215 students and the construction of new accommodation for an additional 577 students. The construction of the new accommodation was completed for the start of the 2017-18 Academic Year.
The University nominates rooms in the student village on an annual basis, during the year ended 31 July 2025 the University nominated 68% of the accommodation available for the 2025-26 Academic Year. Since the year end, this nomination has increased to 72%.
Movement in service concession arrangement assets:
The asset value of the service concession included in debtors as at 31 July 2025 is £4,227k (2024: £4,389k).
Movement in service concession arrangement liabilities:
The total liability relating to the service concession included in creditors: amounts falling due within one year as at 31 July 2025 is £4,227k (2024: £4,389k).
| 16 Non-current investments | Endowment asset investments £000 | Other fixed asset investments £000 | Total £000 |
| Consolidated | |||
| At beginning of year | 2,810 | 5 | 2,815 |
| Additions at cost | 617 | – | 617 |
| Revaluation | 118 | – | 118 |
| Disposals | (552) | – | (552) |
| At year end | 2,993 | 5 | 2,998 |
| University | |||
| At beginning of year | 2,213 | 5 | 2,218 |
| Additions at cost | 552 | – | 552 |
| Revaluation | 67 | – | 67 |
| Disposals | (498) | – | (498) |
| At year end | 2,334 | 5 | 2,339 |
| The non-current investments have been valued at market value. | |||
a) Investment in subsidiary companies
Details of the companies, all registered in England and Wales, in which the University holds an interest, are as follows:
| Name of company | Percentage holding of ordinary shares | Shareholding | Principal business activity |
| Fullwood Park Limited | 100% | 100 Ordinary £1 shares | Provision of conference and catering services |
| University of Gloucestershire Professional Services Limited | 100% | 1 Ordinary £1 share | Provision and management of professional services staff |
The registered office for Fullwood Park Limited and University of Gloucestershire Professional Services Limited is Fullwood House, The Park, Cheltenham, Gloucestershire, GL50 2RH.
b) The Janet Trotter Trust
The activities of The Janet Trotter Trust, a registered charity, are consolidated within endowment reserves on the grounds that the University has a controlling influence over its activities. The accounts of The Janet Trotter Trust for the year to 31 July 2024 show total net assets of £718,533 (2024: £675,411) and net expenditure and movement in funds for the year of £7,133 (2024: net income £30,895).
c) Other fixed asset investments
Other fixed asset investments include the share capital held by the University in Uliving@Gloucestershire Holdco Limited. The University holds 5,030 £1 ordinary shares in the company, which comprises 10% of the issued share capital. The company was set up to manage the contract for the construction and running of the Pittville student village (see note 15).
| 17 Debtors | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Trade debtors | 14,850 | 12,970 | 14,842 | 12,957 |
| Other debtors | 1,137 | 1,168 | 1,134 | 1,168 |
| Service concession arrangements (note 15) | 4,227 | 4,390 | 4,227 | 4,390 |
| Amounts owed by subsidiary companies | – | – | 277 | 231 |
| Prepayments and accrued income | 4,519 | 3,915 | 4,511 | 3,911 |
| 24,733 | 22,443 | 24,991 | 22,657 |
Included within other debtors is £1,033,000 in respect of an interest bearing loan due from Uliving@Gloucestershire Finco Limited. The loan to Uliving@Gloucestershire Finco Limited was used by the company as part of the overall financing of the Pittville student village project (see note 15). The loan is for a period of 46 years with capital repayments to be made over the last 11 years.
Amounts due from group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
| 18 Current investments | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Short term deposits | 7,473 | 16,002 | 7,473 | 16,002 |
| 19 Creditors: amounts falling due within one year | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Secured loans | 4,454 | 3,647 | 4,454 | 3,647 |
| Service concession arrangements (note 15) | 4,227 | 4,390 | 4,227 | 4,390 |
| Payment received on account | 15,199 | 11,478 | 15,199 | 11,478 |
| Trade creditors | 2,086 | 2,541 | 2,081 | 2,474 |
| Amounts owed to subsidiary companies | – | – | – | 31 |
| Social security and other taxation payable | 1,091 | 984 | 1,004 | 984 |
| Pensions | 953 | 1,006 | 953 | 1,006 |
| Deferred capital grants | 2,561 | 1,555 | 2,561 | 1,555 |
| Accruals and deferred income | 29,772 | 23,053 | 29,680 | 22,899 |
| 60,343 | 48,654 | 60,159 | 48,453 | |
| Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. | ||||
| 20 Creditors: amounts falling due after more than one year | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Secured loans | 24,313 | 28,421 | 24,313 | 28,421 |
| Deferred capital grants | 36,366 | 31,162 | 36,366 | 31,612 |
| 60,679 | 60,034 | 60,679 | 60,034 | |
| Analysis of secured and unsecured loans | ||||
| Due within one year | 4,454 | 3,647 | 4,454 | 3,647 |
| Due between one and two years | 24,313 | 27,960 | 24,313 | 27,960 |
| Due between two and five years | – | 462 | – | 462 |
| 28,767 | 32,068 | 28,767 | 32,068 | |
In 2016, the University re-financed all of its existing interest bearing loans and finance leases into a new loan for £15.7 million with the Royal Bank of Scotland. This loan runs to October 2026 and is managed using a series of short term interest contracts at LIBOR + 1.45%. This loan is secured on University property.
In July 2024, the University entered a secured facility agreement with Barclays for £42.9 million, consisting of three tranches: a term loan of £27.9m and two Revolving Credit Facilities (RCF) – one of £8m and a further RCF of £7m, with all three tranches having options to extend. The £27.9 million had been drawn to refinance the former Barclays secured loan. The £8m RCF facility is available to help support the university minimum liquidity requirements whilst the £7m RCF facility is specifically linked to fixed asset disposals. In July 2025, the University implemented the loan extension option; term loan runs to May 2027 and the RCF’s run to December 2026 and January 2026.
To reduce uncertainty, a swap contract with the Royal Bank of Scotland was put in place in 2005 to fix a proportion of the loan interest at 4.56%. This swap contract ended during the year.
| 21 Deferred capital grants | Consolidated & University | Consolidated & University | Consolidated & University |
| Funding Councils | Other grants & benefactions | Total | |
| £000 | £000 | £000 | |
| At beginning of year | |||
| Buildings | 20,362 | 6,843 | 27,205 |
| Equipment | 2,719 | 3,244 | 5,963 |
| 23,081 | 10,087 | 33,168 | |
| Cash received | |||
| Buildings | 4,775 | 2,000 | 6,775 |
| Equipment | 87 | 602 | 689 |
| 4,862 | 2,602 | 7,464 | |
| Released to income and expenditure | |||
| Buildings | (557) | (652) | (1,209) |
| Equipment | (269) | (226) | (495) |
| (826) | (878) | (1,704) | |
| At end of year | |||
| Buildings | 24,580 | 8,191 | 32,771 |
| Equipment | 2,537 | 3,620 | 6,157 |
| 27,117 | 11,811 | 38,928 |
| 22 Provisions | LGPS Defined benefit obligations | Obligation to fund deficit on USS and CEFPS | Pensioners | Other | Total |
| £000 | £000 | £000 | £000 | £000 | |
| Consolidated | |||||
| At beginning of year | – | – | 663 | 207 | 870 |
| Utilised during the year | 2,341 | – | (265) | – | 2,076 |
| Transfer from Income and Expenditure | (2,341) | – | 144 | 16 | (2,181) |
| At end of year | – | – | 542 | 223 | 765 |
| LGPS Defined benefit obligations | Obligation to fund deficit on USS and CEFPS | Pensioners | Other | Total | |
| £000 | £000 | £000 | £000 | £000 | |
| University | |||||
| At beginning of year | – | – | 663 | 207 | 870 |
| Utilised during the year | 2,341 | – | (265) | – | 2,076 |
| Transfer from Income and Expenditure | (2,341) | – | 144 | 16 | (2,181) |
| At end of year | – | – | 542 | 223 | 765 |
| 23 Endowment reserves | Restricted permanent endowments £000 | Expendable endowments £000 | Total 2025 £000 | Total 2024 £000 |
| Consolidated | ||||
| At beginning of year | ||||
| Capital | 2,515 | 1,626 | 4,141 | 3,929 |
| Accumulated income | (279) | (606) | (885) | (853) |
| 2,236 | 1,020 | 3,256 | 3,076 | |
| New Endowments | – | 6 | 6 | 6 |
| Investment income | 134 | 28 | 162 | 114 |
| Expenditure | (132) | (33) | (165) | (147) |
| 2 | 1 | 3 | (26) | |
| Increase in market value of investments | 68 | 50 | 118 | 205 |
| At end of year | 2,306 | 1,071 | 3,377 | 3,256 |
| Analysis by type of purpose | ||||
| Fellowships and scholarship prizes | – | 8 | 8 | 9 |
| Prize funds | 15 | 84 | 99 | 96 |
| Other funds | 2,291 | 979 | 3,270 | 3,151 |
| 2,306 | 1,071 | 3,377 | 3,256 | |
| Analysis by asset | ||||
| Current and non-current asset investments | 2,989 | 2,801 | ||
| Cash and cash equivalents | 388 | 455 | ||
| 3,377 | 3,256 | |||
| University | ||||
| At beginning of year | ||||
| Capital | 2,515 | 1,005 | 3,520 | 3,331 |
| Accumulated income | (279) | (660) | (939) | (875) |
| 2,236 | 345 | 2,581 | 2,456 | |
| New Endowments | – | 6 | 6 | 6 |
| Investment income | 134 | 10 | 144 | 68 |
| Expenditure | (132) | (8) | (140) | (132) |
| 2 | 8 | 10 | (57) | |
| Increase in market value of investments | 68 | – | 68 | 181 |
| At end of year | 2,306 | 353 | 2,659 | 2,581 |
| Analysis by type of purpose | ||||
| Fellowships and scholarship prizes | – | 8 | 8 | 9 |
| Prize funds | 15 | 84 | 99 | 96 |
| Other funds | 2,291 | 261 | 2,552 | 2,476 |
| 2,306 | 353 | 2,659 | 2,581 | |
| Analysis by asset | ||||
| Current and non-current asset investments | 2,333 | 2,204 | ||
| Cash and cash equivalents | 326 | 377 | ||
| 2,659 | 2,581 |
| 24 Restricted Reserve | Consolidated 2025 £000 | Consolidated 2024 £000 | University 2025 £000 | University 2024 £000 |
| At beginning of year | 23 | 28 | 23 | 28 |
| New endowments and donations | 5 | 5 | 5 | 5 |
| Expenditure | (6) | (10) | (6) | (10) |
| At end of year | 22 | 23 | 22 | 23 |
| Analysis by type of purpose | ||||
| Scholarships and bursaries | 12 | 12 | 12 | 12 |
| Prize funds | 1 | – | 1 | – |
| Other funds | 9 | 11 | 9 | 11 |
| 22 | 23 | 22 | 23 |
| 25 Revaluation Reserve | Consolidated 2025 £000 | Consolidated 2024 £000 | University 2025 £000 | University 2024 £000 |
| Revaluations | ||||
| At beginning of year | 27,815 | 27,815 | 27,815 | 27,815 |
| At end of year | 27,815 | 27,815 | 27,815 | 27,815 |
| Contributions to depreciation | ||||
| At beginning of year | (27,815) | (27,815) | (27,815) | (27,815) |
| At end of year | (27,815) | (27,815) | (27,815) | (27,815) |
| Revaluation reserve | ||||
| At end of year | – | – | – | – |
| At beginning of year | – | – | – | – |
| 26 Lease obligations | Consolidated 2025 £000 | Consolidated 2024 £000 | University 2025 £000 | University 2024 £000 |
| Future minimum lease payments under | ||||
| non-cancellable operating leases are as follows: | ||||
| Within 1 year | 171 | 535 | 171 | 535 |
| Between 2 and 5 years | 55 | 1,893 | 55 | 1,893 |
| Over 5 years | – | 934 | – | 934 |
| 226 | 3,361 | 226 | 3,361 | |
| Representing: | ||||
| Land and buildings | 125 | 3,271 | 125 | 3,271 |
| Other operating leases | 101 | 91 | 101 | 91 |
| 226 | 3,361 | 226 | 3,361 |
| 27 Capital commitments | Consolidated 2025 £000 | Consolidated 2024 £000 | University 2025 £000 | University 2024 £000 |
| Authorised but not contracted | ||||
| At end of year | 5,936 | 5,122 | 5,936 | 5,122 |
| Authorised and contracted | ||||
| At end of year | 1,757 | 20,064 | 1,757 | 20,064 |
28 Contingent liabilities
The University has previously received a grant of £250,000 from The Central Board of Finance of the Church of England.This becomes payable in the event of the University withdrawing teacher training facilities.
29 Events after the reporting period
The University completed on the sale of unused playing fields, known as the Folley, during October 2025. The sale proceeds for this were c£6m and this sale will be reflected within the 25/26 financial statements. There have been no other post balance sheet events.
30 Cash and cash equivalents
| At beginning of year | Cash flows | At end of year | |
| £000 | £000 | £000 | |
| Consolidated | |||
| Cash at bank and in hand | 2,090 | (605) | 1,485 |
| Short term deposits | 16,002 | (8,529) | 7,473 |
| 18,092 | (9,134) | 8,958 | |
| University | |||
| Cash at bank and in hand | 1,595 | (613) | 982 |
| Short term deposits | 16,002 | (8,529) | 7,473 |
| 17,597 | (9,142) | 8,455 |
31 Consolidated reconciliation of net debt
| Consolidated 2025 £000 | ||
| Net debt 1 August | 34,368 | |
| Movement in cash and cash equivalents | 605 | |
| Movement in secured loans | (3,301) | |
| Other non-cash changes | (163) | |
| Net debt 31 July | 31,509 | |
| Change in net debt | (2,859) | |
| Analysis of net debt: | Consolidated 2025 | Consolidated 2024 |
| £000 | £000 | |
| Cash and cash equivalents | 1,485 | 2,090 |
| Borrowings: amounts falling due within one year | ||
| Secured loans | 4,454 | 3,647 |
| Service concession arrangements | 4,227 | 4,390 |
| 8,681 | 8,037 | |
| Borrowings: amounts falling due after more than one year | ||
| Secured loans | 24,313 | 28,421 |
| 24,313 | 28,421 | |
| Net debt | 31,509 | 34,368 |
| 32 Financial instruments | Consolidated 2025 | Consolidated 2024 | University 2025 | University 2024 |
| £000 | £000 | £000 | £000 | |
| Financial assets | ||||
| Financial assets at fair value through statement of comprehensive income | ||||
| – Listed investments | 2,993 | 2,810 | 2,334 | 2,213 |
| Financial assets that are equity instruments measured at cost less impairment | ||||
| – Other investments | 5 | 5 | 5 | 5 |
| Financial assets that are debt instruments measured at amortised cost | ||||
| – Cash and cash equivalents | 1,485 | 2,090 | 982 | 1,595 |
| – Current investments | 7,473 | 16,002 | 7,473 | 16,002 |
| – Trade debtors | 14,850 | 12,970 | 14,842 | 12,957 |
| – Other debtors | 1,137 | 1,172 | 1,134 | 1,172 |
| – Amounts owed by subsidiary companies | – | – | 277 | 231 |
| – Accrued income | 2,609 | 1,546 | 2,608 | 1,546 |
| 30,552 | 36,594 | 29,655 | 35,721 | |
| Financial liabilities | ||||
| Financial liabilities measured at amortised cost | ||||
| Secured loans | 28,767 | 32,068 | 28,767 | 32,068 |
| Service concession arrangement | 4,227 | 4,390 | 4,227 | 4,390 |
| Trade creditors | 2,086 | 2,541 | 2,081 | 2,474 |
| Accruals | 6,967 | 13,076 | 6,893 | 12,988 |
33 Related party transactions
To capture information on related party transactions, the University has written to members of Council. Due to the nature of the University’s operations and the composition of Council, being drawn from commerce, industry and the public sector, it is inevitable that transactions will take place with organisations in which a member of Council has a connection. All such connections are declared annually in the Register of Council Members Interests. All such transactions are conducted at arm’s length and in accordance with the University’s Financial Regulations with regards to procurement.
Relevant significant relationships held by members of Council who served in the year are:
(i) Ms I Barker is Joint Chair, University Hospitals Bristol & Weston NHS Foundation
(ii) S Gardiner is Trustee of GRS (EOT) Ltd which owns ECCTIS
(iii) N de Iongh is a Board member of the Gloucestershire Health and Care NHS Foundation Trust
(iv) P Warry is an Archaeological Specialist consultant to Cotswold Archaeology
(v) B Holland is an Education and Community Officer of the Gloucestershire Students’ Union
(vi) F Rowley is an Activities and Opportunities Officer of the Gloucestershire Students Union
(vii) P Sissons is a Director of Winchcombe School
For the year ended 31 July 2025 expenses totalling £3,375 (2024: £2,485) were claimed by six Directors and Trustees in respect of their responsibilities as a Director and Trustee. The University does not remunerate its external Directors and Trustees. The salaries of members of staff who serve on Council do not include any element specific to this role.
The University of Gloucestershire Students’ Union is a separately constituted entity which is governed by its own Board of Directors. The University has no financial interest, control or significant influence over policy decisions. The University helps to support the core activities with a block grant on an annual basis which include Student Representation; Student Opportunities; support for Student Volunteering; Student Events & Entertainments; and Student Sport & Societies. During the year sales of £nil (2024: £2,042) and purchases of £627,526 (2024: £641,200) relating to core activities were transacted with the Student Union. At the year-end a balance of £450 (2024: £9,250) was due to The University of Gloucestershire Students’ Union and a year-end balance of £nil (2024: £nil) was owed to The University.
34 The Teaching Regulation Agency
The University, acting as agent for the Teaching Regulation Agency, disbursed £619,500 (2024: £514,000) training bursaries to students undergoing Initial Teacher Training for the year ended 31 July 2025. The training bursaries have not been included in the income and expenditure of the University.
35 Pension schemes
(a) Teachers’ Pension Scheme
The Teachers’ Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers’ Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments in England and Wales that are maintained by local authorities, and in academies. In addition, teachers in many independent schools, and teachers and lecturers in some establishments of further and higher education may be eligible for membership.
Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.
The Teachers Pension Budgeting and Valuation Account
Although members may be employed by various bodies, their retirement and other pension benefits are set out in the abovementioned regulations, made under the Superannuation Act (1972) and Public Service Pensions Act (2013), and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.
The Teachers’ Pensions Regulations 2010 require an annual account – the Teachers’ Pension Budgeting and Valuation Account – to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.
Valuation of the Teachers’ Pension Scheme
As a result of the latest scheme valuation, employer contributions were increased in April 2024 from a rate of 23.6% to 28.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.
View a copy of the latest valuation report.
The next valuation is expected to take effect in 2027.
Scheme Changes
In line with the requirements of the Public Service Pensions and Judicial Offices Act 2022, the Department for Education laid regulations which came into force on 1 April 2022, closing the legacy scheme to any further accrual which prevented any further discrimination.
The regulatory changes, along with the ongoing Transitional Protection remedy, are being implemented in response to the McCloud-Sargeant discrimination ruling. The retrospective remedy offers members in scope a deferred choice of benefits, legacy or reformed, in respect of pensionable service during the remedy period (1 April 2015 to 31 March 2022).
The total consolidated pension costs under the Teachers’ Pension Scheme for the University were:
| 2025 | 2024 | |
| £000 | £000 | |
| Contributions to Teachers’ Pensions | 6,066 | 5,336 |
b) Universities Superannuation Scheme
The institution participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions, and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery
Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account. FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with section 28 of FRS 102. The directors are satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving these financial statements.
The total cost charged to the statement of comprehensive income and expenditure is £149,393 (2024: £164,930).
Deficit recovery contributions due within one year for the institution are £0 (2024: £0).
A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions’ basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the statement of income and expenditure in the prior year.
The latest available complete actuarial valuation of the Retirement Income Builder, the defined benefit part of the scheme, is as at 31 March 2023 (the valuation date), which was carried out using the projected unit method.
Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.
The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.
The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles.
| Price inflation – Consumer Prices Index (CPI) | 3.0% p.a. (based on a long-term average expected level of CPI, broadly consistent with long term market expectations) |
| RPI/CPI gap | 1.0% p.a to 2030, reducing linearly by 0.1%p.a from 2030. |
| Pension increases (subject to a floor of 0%) | Benefits with no cap CPI assumption plus 3bps Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 3bps CPI assumption less 3bps |
| Discount rate (forward rates) | Fixed interest gilt yield curve plus: Pre-retirement: 2.5% p.a. and Post retirement: 0.9% p.a. |
The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:
| 2023 valuation | |
| Mortality base table | 101% of S2PMA “light” for males and 95% of S3PFA for females |
| Future improvements to mortality | CMI_2021 with a smoothing parameter of 7.5 and an initial of 0.4% p.a. 10% w2020 and w2021 parameters, and a long-term improvement rate of 1.8% pa for males and 1.6% pa for females. |
The current life expectancies on retirement at age 65 are:
| 2025 | 2024 | |
| Valuation | Valuation | |
| Males currently aged 65 (years) | 23.8 | 23.7 |
| Females currently aged 65 (years) | 25.5 | 25.6 |
| Males currently aged 45 (years) | 25.7 | 25.4 |
| Females currently aged 45 (years) | 27.2 | 27.2 |
c) Gloucestershire County Council Superannuation Scheme
Non-academic staff belong to the Gloucestershire County Council Superannuation Scheme. The scheme is a defined benefits scheme in the UK and is externally funded. The total contributions made for the year ended 31 July 2025 were £4,425m, of which employer’s contributions totalled £3,592m and employees’ contributions totalled £833m. The agreed contribution rates for future years are 22.1% for employers and range from 5.5% to 12.5% for employees, depending on salary.
As at 31 July 2025 the scheme reported a surplus of £57,051m (2024: £29,414m) following the actuarial valuation. The requirements of FRS102 states an entity shall recognise a plan surplus as a defined benefit plan asset only to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. The university is an active employer within the scheme and is therefore not entitled to a refund or reduction in contributions and has therefore reported a nil surplus in line with FRS102.
The following information is based on the last full actuarial valuation carried out at 31 March 2022 updated to 31 July 2022 by a qualified independent actuary, Hymans Robertson.
| Latest actuarial valuations | 31 March 2022 |
| Investment returns per annum | 4.20% |
| Salary scale increases per annum | 3.20% |
| Pension increases per annum | 2.70% |
| Price Inflation | 2.70% |
The estimate of contributions expected to be paid in the next year (year ending 31 July 2026) are £2,984m at a contribution rate of 22.1% until the next actuarial valuation change in April 2026.
The major assumptions used by the Actuary were:
| 31 July 2025 | 31 July 2024 | 31 July 2023 | |
| % | % | % | |
| Pension increase rate | 2.75 | 2.75 | 3.00 |
| Salary increase rate | 3.25 | 3.25 | 3.50 |
| Expected return on assets | 5.80 | 5.0 | 5.05 |
| Discount rate | 5.80 | 5.0 | 5.05 |
| Inflation assumption | 2.75 | 2.75 | 3.50 |
The mortality assumptions assume that the current rate of improvements have peaked and will converge to a long-term rate of 1.5%. Based on these assumptions, the average life expectancies at age 65 are:
| Current Pensioners | 31 July 2025 | 31 July 2024 | 31 July 2023 |
| Males | 21.3 | 21.1 | 21.2 |
| Females | 24.5 | 24.4 | 24.5 |
| Future Pensioners (at age 45) | |||
| Males | 22.4 | 22.2 | 22.3 |
| Females | 25.8 | 25.7 | 25.8 |
The amounts recognised in the Consolidated and University statement of income and expenditure, in accordance with the requirements of FRS 102 are:
| 2025 | 2024 | |
| £000 | £000 | |
| Amounts included in staff costs | ||
| Current service cost | 2,222 | 2,774 |
| 2,222 | 2,774 | |
| Amounts included in interest and other finance costs | ||
| Interest income on plan assets | (7,504) | (6,809) |
| Interest on pension scheme liabilities | 6,014 | 5,832 |
| Net charge to other finance costs | 1,490 | 977 |
| Amount recognised in other comprehensive income | ||
| Return on pension plan assets | 5,834 | 7,016 |
| Changes in demographic assumptions | (505) | 241 |
| Changes in financial assumptions | (8,769) | (5,118) |
| Experience losses/(gains) arising on defined benefit obligations | 1,099 | (3,684) |
| (2,341) | (1,545) | |
| An analysis of the amount shown in the balance sheets at 31 July 2025 and 31 July 2024 is: | ||
| 31 July 2025 | 31 July 2024 | |
| £000 | £000 | |
| Total market value of assets | 164,174 | 149,568 |
| Actuarial value of scheme liabilities | (164,174) | (149,568) |
| Balance of the scheme – Net pension liability recorded within pension provisions | – | – |
The movements in the net liability are as follows:
| Movement in net defined (liability) during the year | ||
| Net defined liability in scheme at 1 August | – | – |
| Current service cost | (2,222) | (2,774) |
| Employer contributions | 3,592 | 3,920 |
| Past Service cost | (519) | (578) |
| Net interest on the defined (liability) | 1,490 | 977 |
| Actuarial loss | (2,341) | (1,545) |
| Net defined balance in scheme at 31 July | – | – |
| Movement in present value of the pension scheme during the year | ||
| Present value at 1 August | 149,568 | 133,923 |
| Current service cost (net of member contributions) | 2,222 | 2,774 |
| Net interest | 6,014 | 5,832 |
| Plan participants’ contributions | 833 | 978 |
| Actuarial loss | 8,175 | 8,561 |
| Past Service cost | 519 | 578 |
| Actual benefit payments | (3,157) | (3,078) |
| Present value at 31 July | 164,174 | 149,568 |
| 31 July 2025 | 31 July 2024 | |
| Movement in the fair value of scheme assets | £000 | £000 |
| Fair value at 1 August | 149,568 | 133,923 |
| Expected return on assets | 5,834 | 7,016 |
| Interest income on plan assets | 7,504 | 6,809 |
| Actual contributions paid by University | 3,592 | 3,920 |
| Plan participants’ contributions | 833 | 978 |
| Actual benefit payments | (3,157) | (3,078) |
| Fair value at 31 July | 164,174 | 149,568 |
History of experience gains and losses:
| Year to July 2025 | Year to July 2024 | Year to July 2023 | Year to July 2022 | Year to July 2021 | |
| Difference between the expected and actual return on assets | |||||
| Amount (£’000) | 5,834 | 7,016 | (3,231) | (2,749) | 20,047 |
| Percentage of assets at year end | 3.55% | 4.69% | (2.41)% | (2.11)% | 15.58% |
| Experience gains/(losses) on liabilities | |||||
| Amount (£’000) | 8,175 | 8,561 | (12,981) | (71,765) | 21,500 |
| Percentage of liabilities at year end | 4.98% | 5.72% | (9.69)% | (51.67)% | 10.82% |
The University is aware of the Virgin Media Ltd v NTL Pension Trustees II Ltd (and others) case. There is a potential for the outcome of the case to have an impact on the UK pension scheme. The case affects defined benefit schemes that provided contracted-out benefits before 6 April 2016 based on meeting the reference scheme test. Where scheme rules were amended, potentially impacting benefits accrued from 6
April 1997 to 5 April 2016, schemes needed the actuary to confirm that the reference scheme test was still being met by providing written confirmation under Section 37 of the Pension Scheme Act 1993. In the Virgin Media case the judge ruled that alterations to the scheme rules were voided and ineffective because of the absence of written actuarial confirmation required under Section 37 of the Pension Schemes Act 1993. The case was taken to The Court of Appeal in June 2024 and the original ruling upheld.
As a result, there may be a further liability the LGPS for benefits that were reduced by previous amendments, if those amendments prove invalid (i.e.: were made without obtaining s37 confirmation). The situation is under review it is therefore currently not possible at present to estimate the potential impact, if any, on the scheme and consequently the defined benefit obligation in the financial statements.
d) Church of England Funded Pensions Scheme
The University of Gloucestershire participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.
Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.
The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the scheme’s assets and liabilities to specific Responsible Body, and this means contributions are accounted for as if the scheme were a defined contribution scheme. The pensions costs charged to the Consolidated and University statement of comprehensive income and expenditure in the year are contributions payable towards benefits and expenses accrued in that year were £6k (2023: £7k,), plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022: £1k).
A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:
Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) were as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded.
The deficit recovery contributions under the recovery plan in force at each 31 December were as follows:
| % of pensionable stipends | |
| 31 December 2021 | 7.1% payable from January 2021 to December 2022 |
| 31 December 2022 | Nil |
| 31 December 2023 | Nil |
An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.
For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.
Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2023 and over 2024 is set out in the table below.
| 2024 | 2023 | |
| Balance sheet liability at 1 January | – | – |
| Deficit contribution paid | – | – |
| Interest cost (recognised in SoFA) | – | – |
| Remaining change to the balance sheet liability* (recognised in SoFA) | – | – |
| Balance sheet liability at 31 December | – | – |
* Comprises change in agreed deficit recovery plan and change in discount rate and inflation assumptions between year-ends.
This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.
| December 2024 | December 2023 | December 2022 | |
| Discount rate | n/a | n/a | n/a |
| Price inflation | n/a | n/a | n/a |
| Increase to total pensionable payroll | n/a | n/a | n/a |
The legal structure of the scheme is such that if another Responsible Body fails, University of Gloucestershire could become responsible for paying a share of that failed Responsible Body’s pension liabilities.
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