Principal End of Year Update

Principal End of Year Update

Dear colleagues,

I’m very grateful to all of you for your hard work in 2023 in the service of our students, each other and the external beneficiaries of our education and research.

I'm writing to update on Court's discussions last week on the financial plan for the University, and to reflect on some of our achievements this year and the actions we are taking to support the communities around us in Aberdeen.

University Finances

Court has endorsed proposals for a financial recovery plan, and scope has been provided for deficits this academic year and next of approximately 4% and 2% respectively of our annual income. The intention is to return to a break-even position by 2026/27.

These deficits, which mean we'll be drawing on our cash reserves to spend more than we are earning in the short term, are not a solution to our financial difficulties.  Rather, they provide an opportunity to adapt by growing other sources of revenue, including online programmes, transnational education, and the commercialisation of academic and professional service activity.  

This is crucial because, after years of falling public funding and now the sharp drop in international students coming to the UK, alarm bells are ringing loudly right across the UK about hard times in the higher education sector.

The growth in other sources of income can eventually be substantial but will not be sufficiently rapid to achieve financial sustainability this year or next. Efforts to grow revenue will therefore be combined with a continuation of the pause on recruitment to all but a very small number of posts, and with arrangements to enable take-up of voluntary severance and early/flexi-retirement. Retirement options will be publicised to the University community in January.

The financial recovery plan will return to Court at the end of February for final sign off. Court has specifically requested that in the meantime the University community takes all available steps to boost revenue growth, and that the impact of cost reductions on the quality of our next REF submission is carefully assessed and minimised. At the same meeting, Court will consider proposals for the academic viability and financial sustainability of our Languages programmes. I'm grateful to our colleagues in Languages for working on these proposals.

External recognition of University achievements in 2023

Our University community continues to have much to be proud of.  Although we are often aware of this ourselves, it’s especially pleasing when the quality of our work is recognised externally.  Highlights this year include:

  • Top 20 UK rankings for third consecutive year in both the Sunday Times/Times and Guardian League tables (and a best ever ranking of 12th in the latter).
  • Top 10 in the UK in the National Student Survey for the third year running, based on the quality of education and the support we provide to our students.

The impact of our research has received strong external recognition and coverage this year.  Here are just some of the University’s research highlights:

  • Researchers from the Rowett Institute saw their work on hemp recognised at the prestigious Green Gown Awards UK and were named the winner of the Research with Impact Award 2023.  This world-leading research has shown the excellent nutritional profile of hemp and helped to secure the regeneration of the Scottish hemp industry.
  • Researchers from the Business School have led efforts to understand the impact of the Covid-19 pandemic on the readymade garment industry and to clarify corporate responsibility for worker protections within the supply chain.  The team’s findings were presented to the All-Party Parliamentary Group for Ethics & Sustainability in Fashion, and resulted in a Bill placed at Westminster to support a Fashion Watchdog for curbing slavery and exploitation.
  • Archaeology researchers are building on key discoveries from the last decade to rewrite the history of Palaeolithic Scotland.  The team will conduct ‘archaeology in reverse’ using already archived materials to help build a more accurate picture of Scotland’s earliest occupants. Funding from the European Research Council/UKRI Horizon Europe will provide a rich opportunity for cultural impact as the history of Palaeolithic Scotland is revealed.

Supporting the communities around us

The University continues to support the region by leveraging our excellence in education and research. Through the National Energy Skills Accelerator (NESA) we are working with partners to deliver skills in support of the energy transition.  May 2023 saw the opening of the BioHub facility at Foresterhill – a £40M investment in the north-east’s Life Sciences sector funded by the Aberdeen City Region Deal; BioHub is an important strand of economic diversification in our region.  

Staff across the University play a vital role in community justice, poverty reduction and sustainability. Our interdisciplinary Just Transition Lab is working to ensure that local people have a voice in the energy transition.  During the summer, we learnt that our region had been awarded Investment Zone status by the Scottish and UK governments; £160M of government funding is available over ten years, and the University will play a central role in delivering support for knowledge exchange, innovation, and skills.

I am acutely aware as someone who grew up in Aberdeen that the University is an island of relative prosperity surrounded by communities, families and individuals who are far less fortunate than most of us who work here.  Therefore, I am donating to Aberdeen-based charity AberNecessities which provides support to disadvantaged families.  Aberdeen City Council estimates that 21.5% of children in the city are living in poverty.  If you would like to join me in donating to this very worthy cause, you can do so via the charity’s website.

The University has been successful for almost 529 years because it has adapted effectively to changing circumstances. This will continue to be essential in 2024 and the years ahead.  For now, I hope you are able to forget about work for at least some of the time during the next few weeks and enjoy other aspects of life to the full.

With best wishes,

George

George Boyne

Principal & Vice-Chancellor