A savings initiative at Aberystwyth University has seen its annual deficit fall from £8.1m to £2.4m in the last academic year, fresh accounts have shown.

Aberystwyth University released its annual report for the 2024/25 year on 30 January.

The university launched a “transformation programme” in 2024 in a bid to find more than £14m in savings to bring a growing deficit under control.

The latest set of accounts showed that work is paying off, with the deficit falling to £2.4m in 2024/25 compared to £8.1m the previous year.

The report shows that tuition fees rose by almost £3m in 2024/25 compared to the previous year, while staff costs fell by around £3.5m over the same period.

The university paid out just over £1m in staff restructuring costs including redundancy packages and use of the voluntary severance scheme in 2024/25.

The annual report says that while home undergraduate fees increased this year, they “continue to lag significantly behind the increases in inflation during the last 10 years.”

“To improve our operational position, we had to take some difficult decisions to reduce expenditure,” the report said.

“By undertaking a programme of savings, we reduced staff and consumable costs by over £14m in the period.

“Whilst this reduction in our operational deficit is welcome, we will need to continue our work on the university’s Transformation Programme.”

The report outlines that the university is not yet in a position to aim for balanced books or a surplus, with the aim for the current academic year to post a deficit of £1.9m.

Aberystwyth University Vice-Chancellor Jon Timmis said the university is making “good progress” on its plans to “establish a sustainable operating model” and described the improvement in financial performance for 2024/25 as “encouraging”.