Durham University has warned it will need to take “further action” to reduce the impact of coronavirus on the business.

Vice-Chancellor, Professor Stuart Corbridge, said the institute is taking stock of the financial challenges ahead, including the loss of fee income from a reduction in student numbers and has reduced non-essential spend.

It comes after a report revealed the North East’s universities were expected to lose £118 million as international students stay away from the UK.

While Durham University is in a “strong position”, he warned further action would need to be taken.

He said: “As with all universities, the covid-19 pandemic has brought new challenges for Durham University.

Professor Stuart Corbridge
Professor Stuart Corbridge

“I am very grateful for the many diverse ways in which our staff, students and wider community have risen to these challenges to date to ensure we can continue to deliver our outstanding research, education and student experience.

“While Durham University remains in a strong position, like many other universities within the UK higher education sector we are currently taking stock of the financial challenges ahead, including an expected loss of fee income from a reduction in international student numbers, and working through what these might mean for us now, next academic year and in the future.”

A report by the economics and policy consultancy firm London Economics predicts most of there will be a loss of £118m to the area’s five universities in the next academic year thanks to a fall of 11,815 in new student numbers.

In the report, commissioned by the University and Colleges Union, it states that if universities are forced to cut spending in line with the loss, 1,496 of the 20,000 plus people employed by universities in the North East are expected to lose their jobs.

Sunderland University has asked staff to take voluntary redundancy after they revealed they the "difficulties" universities are experiencing due to Covid-19.

The university also introduced a freeze on all non-essential vacancies and said members of the University Executive will also be taking a pay cut.

Mr Corbridge said: “We have already taken a number of steps, including reducing non-essential spend and exploring new sources of income generation, and we have welcomed Government’s support where that has been available.

“However, we know we need to take further action to reduce the potential impact on our core business.”

Mr Corbridge said they would be working with staff, students, Trade Unions and other stakeholders as we progress this important work.

He added: “There will be some difficult decisions to take but we will do all we can to secure the long-run sustainability of the University.

“We are confident we can work together as a community to secure the ongoing success of our university.”