The University of Manchester’s financial statements show that their total income exceeded £1.4 billion for the year ending July 31, 2025, a 4.2% increase on the previous year. This marks another year of record-high income.
£763.6 million, or 54%, of the University’s income came from tuition fees, £49.3 million or 6.9% more than the 2023/24 financial year.
International students were responsible for 64% of this tuition fee income, up from 61.4% in the previous year. The income from international student fees was £52.6 million greater than in 2023/24, totalling 34.5% of all University income for the 2024/25 financial year.
Tuition fees from home and EU students fell by £3.8 million in 2024/25 compared to 2023/24. The remaining difference was an increase of £700,000 from short course fees.
Research grants and contracts were responsible for 21% of the University’s 2024/25 income, while funding body grants comprised 11%. Other incomes from sources such as investments, donations and endowments made up the remaining 14%.
Total expenditure excluding Universities Superannuation Scheme (USS) changes rose by 1.1% to over £1.34 billion in 2024/25.
55% of expenditure was spent on staff costs, which increased by 6.3% or £736 million compared to 2023/24. The University notes this was partially due to a 4.7% increase in average full-time posts and inflationary pay awards.
The total number of staff employed by the University of Manchester now stands at 11,833, over 500 more than at the end of the financial year ending July 31, 2024.
Expenditure on teaching was 13% of the total, while research made up 5% of spending.
Premises costs, which include the maintenance, utilities and insurance costs of buildings, were 6% of expenditure, while depreciation and amortisation costs were responsible for 7%. The remaining 14% was comprised of all other expenditure.
Capital expenditure rose marginally from £76.9 million in 2023/24 to £77.6 million in 2024/25.
£8.8 million was invested in the Fallowfield Campus Redevelopment Project in 2024/25. FJones2123 @ Wikimedia Commons.
Among the key investments were £8.8 million on the Fallowfield Campus Redevelopment Project, which aims to replace existing facilities with as many as “3,300 new state-of-the-art bed spaces, increasing the number of beds by up to 950.”
A further £2.7 million was invested in capital improvements to halls of residence.
Other investments included a £3.1 million grant given to the Students’ Union, an increase of £0.1 million from 2023/24, and £5.1 million on delivering blended and flexible learning experiences to staff and students.
In all, net cash outflow from investing activities increased by 46.4% to over £84 million as compared to 2023/24.
Five key financial risks were highlighted for upcoming years, including the increasing reliance of UK higher education on international student fees as well as cyber risk and pay award pressure.
Consequently, the University of Manchester’s net assets now stand at £2.34 billion, a 5.1% rise from the previous year.
The University’s adjusted operating surplus was £84.37 million in 2024/25, a 103% increase on the £41.55 million figure from 2023/24.
The University notes it does not make a profit. Instead, all surpluses are reinvested to fulfil its core goals as outlined in the Manchester 2035 strategy, which aims to make the University of Manchester “a great 21st century university.'
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