The University's spending forecasts for the current financial year (2005-06) have been hit by large increases in the cost of gas, electricity and water, as prices for utilities continue to rise nationwide. Spending on utilities is now forecast to be £3.7m this year, a growth of £1.3m on last year, and nearly £900,000 higher than previously expected.
These figures were presented to the University's main finance committee in November. The proposal going to Council is that half of the extra cost - around £500,000 - will have to be absorbed this year within the existing budgets of schools and units.
These rising costs add impetus to the plans being developed to create a range of energy-saving measures for the campus.
The figures presented to the committee also show that work in 2004 by the Savings Review Group was effective in starting to bring spending under control in 2004-05 and in setting budgets for 2005-06.
University income continues to grow year on year - this year reaching some £111m, although research income is some £250,000 lower than expected. But spending growth still means the University spends some £4m more than it earns.
The continuing tight financial position means that any vacancies still need to be approved centrally before recruitment can start.
Proposals for a new planning and budget-setting process will be presented to Senate and Council. This will inform the work being taken forward by senior managers to set out a long-term strategic view of the optimum size and shape of the University. This will then underpin decisions about where new investment and reductions in spending should be made.