Rose Bruford cuts staffing costs to manage deficit

London’s Rose Bruford College of Theatre and Performance is planning “ongoing cost control” in staffing and other areas after posting a deficit of more than £300,000 for the last financial year.

In the year to July 2024 the college had an operational deficit of £368,234, representing a drop of almost £700,000 following its surplus of £326,763 the previous year.

Income from tuition fees was down by about £300,000 to £2.1m, while grants received from funding bodies fell by more than £700,000 to £8.8m.

Overall, the college’s income fell by £874,735, despite it cutting its spending by about £270,000.

Writing in the college’s annual report, chief executive Professor Randall Whittaker said the institution has “faced financial challenges”, but added that the cash position “remains positive, reflecting careful financial management and strategic prioritisation of resources”.

In response to the fall in income from fees, the college says it has reduced staff costs, which fell by almost £300,000 over the year.

Student recruitment challenges

The report says “ongoing cost control” in this area will be a “major concern” as the higher education sector faces student recruitment and retention challenges.

The college expects downward pressure on student numbers to continue.

Amid other pressures such as inflation and tax rises, it has set a target of reaching a three to five per cent surplus by 2027.

The accounts note that the college is “heavily dependent” on specialist sector grant funding from the government of £1m a year, which will end within three years.

Like other institutions, the college is seeking to replace this income through approaches such as attracting more overseas students and using its estate for additional income.

The college offers undergraduate, postgraduate and foundation courses in a range of subjects to prepare students to work in the performing and production arts industries.

In November, the Office for Students (OfS) warned that 17 higher education providers specialising in creative courses would be struggling with their cash flow by 2025/26.

The regulator said providers may need to take “increasingly bold action” to address financial challenges, potentially including “working with other organisations to reduce costs or identifying potential merger partners or other structural changes”.