Tuesday 08-09-2020 - 11:57

At the end of July, we published an article detailing the extent of the potential cuts from the University to the Students’ Union block grant. As a Full Time Officer (FTO) team, we would like to update you on the situation, what’s been happening, and what this means for you. 

Following the release of our original article, discussing the possible impacts of the cut, and successful negotiations between the Students’ Union and the University taking place, the University confirmed a 15% cut to the block grant for the coming year. This is less than the initial 33% cut we were expecting to receive. Since then, we have been focused on recalculating budgets, getting student input into where to prioritise spending and have approved the final budget for this year, allowing key spending to resume following a budget freeze across all areas. 

While we are glad to have reached an agreement to reduce our block grant cut down to 15% from the suggested 33% - we will continue to lobby the University to increase our block grant for future years, in line with our policy to “Campaign for an Increase in our annual Block Grant from Lancaster University”. Considering the future, we must grow our block grant funding sustainably to allow us to maintain and improve provision for students as student numbers increase. Despite the improved situation regarding the grant cut for this year, we must also factor in the negative effects of COVID-19 on our commercial services. 

Overall, our commercial services are continuing to make a loss. This means less income will be gifted to the main charity to fund areas like societies, JCRs or Advice. We are still unable to re-open The Sugarhouse, which makes nearly 50% of its profits in the first month of Michaelmas term alone, due to government restrictions. Also, Central remains closed due to the University categorically refusing to reduce the premises rent, which, coupled with reduced income due to lower footfall, has meant the shop operates at a loss. (Further information can be found here) 

Since the block grant has been confirmed, and the positions of our commercial services have become clearer, we have undertaken several measures to consult with students to better understand not only your priorities for spending but where we can minimise impact of cuts. Your student input is key for us to not only navigate the next 12 months as a charity, but beyond. We really appreciate those that have already come forward to help set our direction, and encourage everyone to get involved in the coming year to have a say in how we best work through these financial difficulties and ensure we retain your core student experience. 

In line with our block grant policy, the Trustee Board aims to release an updated final budget soon that explains where the funding is being spent to benefit you.