1. Tuition fees and education contracts

2. Funding body grants

3. Grant and fee income

4. Research grants and contracts

5. Other income

6. Other services rendered

7. Investment income

8. Donations and endowments

9. Staff costs

Total emoluments of the Head of Institution are as follows:

The Vice-Chancellor’s salary was benchmarked by the Remuneration Committee with comparator institutions using Universities and Colleges Employers Association (UCEA) data when he took up post on 1 August 2024. Professor Phil Taylor’s basic salary was 7.6 (2023-24 9.2) times the median pay of staff and 12.2 (2023-24 14.9) times the lowest pay of staff. Total remuneration was 7.8 (2023-24 9.1) times the median total remuneration and 14.8 (2023-24 16.8) times the lowest total remuneration. All pay and total remuneration figures are calculated on a full-time equivalent basis.

Professor White, the previous Vice-Chancellor who stepped down in July 2024 retains an ongoing employment relationship with the University as a Professorial Fellow. His salary for 2024-25 was £157,292 including payment-in-lieu of pension contributions.

Remuneration of other higher paid staff

Remuneration of other higher paid staff, excluding employer's pension contributions and before salary sacrifice are:

As defined by the OfS, only staff who completed the full year in post are included. Salary is on a Full-time equivalent (FTE) basis and includes market supplements, but excludes allowances and other such payments.

The net increase of 20 staff in this table comprises 11 new recruits, 16 staff who have received pay rises as a result of performance or promotion, and 7 staff who have left the organisation.

The table includes one member of staff employed by IAAPS Ltd, a subsidiary company of the University.

Included within the above full time equivalent totals are 32 (2023-24 32) staff employed by the University’s subsidiary IAAPS Ltd.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling our activities. The definition of key management personnel has been updated in 2024-25 and it now corresponds to the membership of the University Executive Board. In 2023-24 the definition of key management personnel corresponded to the membership of the University Executive Board Standing Group which has been abolished in August 2024.

Positions held by our key management personnel are:

• Vice-Chancellor and President
• Deputy Vice-Chancellor and Provost
• Pro-Vice-Chancellor (Global Engagement)
• Pro-Vice-Chancellor (Education and Global)
• Pro-Vice-Chancellor (Research and Enterprise)
• Pro-Vice-Chancellor (Student Experience)
• Chief Operating Officer
• University Secretary & Registrar
• Director of Finance
• Executive Director (External Relations)
• Director of Human Resources
• Dean of the School of Management
• Dean of the Faculty of Science
• Dean of the Faculty of Engineering and Design
• Dean of the Faculty of Humanities and Social Sciences

Compensation includes remuneration and all employer benefits paid or payable in exchange for services provided by our key management personnel in the year.

The comparative totals for 2023-24 have been revised to reflect the updated definition of key management personnel.

In 2023-24 the compensation disclosed was £2,219,245 and full time equivalent number was 9.5.

Severance payments include a mixture of redundancy costs, typically at the end of a fixed term contract, settlement agreements and individually agreed exits.

Access and participation staff costs

10. Analysis of expenditure by activity

Read our Access and Participation Plan (APP).

Overall

The financial climate remains challenging, with increasing pressures on both pay and non-pay costs. The financial commitments set out in the 2024–28 Access and Participation Plan (APP) were agreed in 2022-23, based on inflation forecasts at that time. Since then, costs have risen more steeply than expected, particularly in relation to staff pay, travel, accommodation and food. These increases have affected the cost of delivering the wide range of activities within the plan.

For 2024-25, overall APP expenditure is £0.16m lower than planned, following mitigations introduced during the year to balance spending.

Access investment

Widening access to Bath continues to be the main focus of the APP. To bring about change in the diversity of the student population, we increased the scale of outreach activity again in 2024-25, following growth in 2023-24. This expansion led to additional non-pay costs, though these were mitigated during the year, including through reduced pay expenditure.

Spending on access is £0.16m lower than in 2023-24. Within the 2024-28 APP, we committed £2.27m for access. Actual spend in 2024-25 was £2.30m, representing an overspend of £0.03m. This overspend has been balanced by underspend in other areas. Plans are in place to reduce costs in 2025-26, while maintaining large-scale outreach and access activities.

Financial support

Spending on financial support was £0.31m below the target set in the 2024–28 APP, but £0.46m higher than in 2023-24. The increase compared with last year reflects expanded eligibility criteria, which allowed more students to receive financial support. However, the number of students eligible was still slightly lower than forecast when the 2024–28 commitments were made. We expect eligibility to rise as more students meeting contextual criteria enter Bath.

Disability support for students

Total spending on disability support was £0.8m, comprising £0.36m from the OfS Disabled Students’ Premium and an additional £0.44m through the APP. This represents £0.17m more than in 2023-24, largely due to an initiative offering grants to students who, for disability-related reasons, require en-suite accommodation instead of standard accommodation.

Research and evaluation

Expenditure on research and evaluation increased by £0.01m compared with 2023-24. While the 2024–28 APP included a commitment to expand staffing in this area, this was not fully realised in 2024-25, resulting in spending being £0.2m below the APP target. This underspend helped offset spends in other areas. Staffing increases are scheduled for the start of 2025-26, and spending will therefore rise next year.

11. Related party transactions

The financial statements of the University include transactions with related parties. In accordance with FRS 102 these are disclosed where members of the University of Bath’s Council or Key Management Personnel (KMP) disclose an interest in a body with whom the University undertakes transactions which are considered material to the University’s Financial Statements and/or the other party. Due to the nature of the University’s operations and the composition of the Board, being drawn from public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of Council or KMP may have an interest.

See an updated register of the interests of the members of Council.

Reimbursements to members of Council and ARAC for expenditure incurred whilst carrying out their duties amounted to £10,003 (2023-24 £7,210). Ten members of Council and one member of Audit and Risk Assurance Committee (2023-24) nine members of Council and one member of Audit and Risk Assurance Committee) claimed expenses during the year.

The University has taken advantage of the exemption within FRS102 and has not disclosed transactions with other group entities where it holds 100% of the voting rights. Included within the financial statements are the following transactions with related parties:

University of Bath Students’ Union

The Students’ Union provide a range of services and facilities to the University’s student body. Two members of Council sit on the governing body of the Students’ Union.

The University processes the payroll on behalf of the Students’ Union with the salary costs being recharged to the Students’ Union in full. The Students’ Union uses the block grant to repay the salary costs to the University and this amounted to £2.3m in 2024-25 (2023-24 £2.2m).

12. Interest and other finance costs

13. Fixed assets

As at 31 July 2025, we revalued all our freehold and leasehold Buildings. The valuation was carried out by Carter Jonas Limited, an external Chartered Surveyor, on the basis of Existing Use or Depreciated Replacement Cost according to the nature and use of each building. The valuation was prepared in accordance with the Valuation Standards published by the Royal Institute of Chartered Surveyors.

The movement in buildings values following the revaluation is written back through an increase in valuation and the reversal of accumulated depreciation charged since the previous valuation exercise.

An impairment loss of £8.1m (2023-24: £Nil) was recognised in respect of two buildings located at Claverton Down campus due to physical deterioration of one building and functional obsolescence of the other. The impairment loss has been charged to SOCI and has reduced the carrying value of both buildings to £Nil.

Provision has not been made for capital commitments funded by University funds, of £7.4m (2023-24 £13.2m) that were contracted at 31 July.

Freehold and leasehold land and buildings measured by valuation at 31 July 2025 includes the following historical cost:

Leasehold land and buildings includes land with a value of £41.1m at 31 July 2025 (£41.1m at 31 July 2024).

Equipment includes assets donated to us, these are valued at market value as at the date when they were received.

14. Non current asset investments

Our non current asset investments are investments in private companies without published share price quotations.

15. Trade and other receivables

16. Current asset investments

Investments measured at market value include quoted investments of £93.6m (2023-24 £86.4m) and those held in unit funds where a market value can be determined of £12.0m (2023-24 £12.0m).

Investments measured at amortised cost include those held in money market funds, certifcates of deposit and fixed deposits.

Deposits are held with banks and building societies operating in the London market and licensed by the Financial Services Authority. These short term deposits do not meet the definition of cash equivalent. The interest rates for these deposits are fixed for the duration of the deposit at time of placement.

At 31 July 2025, the weighted average interest rate of these fixed rate deposits was 4.30% per annum (2023-24 5.79%) and the remaining weighted average period for which the interest rate is fixed on these deposits was 286 days (2023-24 55 days). The fair value of these deposits was not materially different from the book value.

Current asset investments include £8.5m (2023-24 £8.4m) held in respect of endowments as disclosed in note 21.

17. Creditors: amounts falling due within one year

Deferred income

Included in deferred income are the following items which have been deferred until specific performance-related conditions are met.

18. Creditors: amounts falling due after more than one year

19. Borrowings

£94.6m of the £100m loan notes with The Northwestern Mutual Life Insurance Company and MetLife Insurance K.K. are carried at fair value at each year end (see note 18).

20. Pension provisions

As at 31 July 2025 the Local Government Pension Scheme is valued with surplus position rather than a deficit, therefore no liability is recognised in 2024-25. See note 25 for further details.

21. Endowments

Restricted net assets relating to endowments

Represented by

At 1 August

At 31 July

Analysis by type of purpose

Analysis by asset

22. Restricted reserves

Reserves with restrictions are as follows:

23. Contingent liability

We have entered a number of nomination agreements with five organisations whereby we underwrite the shortfall in the letting of a number of student residences, summarised below. We do not expect any liability to be incurred as a result of these contracts as we expect all residences will be fully let as per the nomination agreements.

24. Lease obligations

The University’s future minimum lease payments are as follows:

The finance leases are for student residences, which are leased for periods of up to 40 years and finance lease for electric vehicles, which are for up to four years. These are recognised as tangible fixed assets (see note 13).

Operating leases

The University had total operating lease commitments in respect of leased property as follows:

Operating leases are held for nine properties (2023-24 nine) used by us as student accommodation. As we do not control the significant residual value in these properties upon the expiry of the lease period they have not been accounted for as Service Concession Arrangements. The lease arrangements expire between 2025 and 2049, the lease payments are reported in other operating expenses.

The commitments above reflect minimum price increases, based on CPI, which are capped by many agreements, typically, between 4% and 6%.

25. Pensions

Universities Superannuation Scheme

We participate in the Universities Superannuation Scheme (USS), a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Limited. USS has over 577,000 members and we had 2,757 (2023-24 2,584) active members at 31 July 2025. USS is a multi-employer scheme and is accounted for as set out in the accounting policies.

The latest available complete actuarial valuation of the Retirement Income Builder, the defined benefit part of the scheme, is as at 31 March 2023 (the valuation date), which was carried out using the projected unit method.

Since we cannot identify our share of the USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles.

Price inflation – Consumer Price Index (CPI)

3.0% per annum (based on a long-term average expected level of CPI, broadly consistent with long-term market expectations).

Gap between Retail Price Index (RPI) and Consumer Price Index (CPI)

1.0% per annum to 2030, reducing to 0.1% per annum from 2030.

Pension increases (subject to a floor of 0%)

Benefits with no cap:

• CPI assumption plus 3bps

Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%):

• CPI assumption minus 3bps

Discount rate

Fixed interest gilt yield curve plus:

• Pre-retirement 2.5% per annum
  
• Post-retirement 0.9% per annum

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table

101% of S2PMA “light” for males and 95% of S3PFA for females.

Future improvements to mortality

CMI 2021 with a smoothing parameter of 7.5, an initial addition of 0.40% p.a., 10% w2020 and w2021 parameters, and a long-term improvement rate of 1.80% pa for males and 1.60% pa for females.

The current life expectancies on retirement at age 65 are:

A deficit recovery plan was put in place as part of the 2020 valuation. It required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. We were no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the statement of comprehensive income in the prior year.

Local Government Pension Scheme

We participate in the Avon Pension Fund which is a funded defined benefit pension scheme with the assets held in separate trustee administered funds. The assumptions which have the most significant effect on the determination of contribution levels are as follows:

• return on investments: 4.6%
• long-term salary increases - higher risk: 4.6%
• long-term salary increases - lower risk: 5.1%
• CPI inflation - higher risk: 3.1%
• CPI inflation - lower risk: 3.6%
  
• valuation date: 31 March 2022
• valuation method: projected unit
• market value of assets at date of last valuation: £5,822m
• market value of assets as a percentage of accrued benefits: 97.0%

The contribution payable by us is 20.7% of pensionable pay as at April 2024.

As a multi-employer scheme where the share of assets and liabilities applicable to each employer can be defined, we have accounted for the scheme under FRS 102 as a defined benefit scheme based on a full actuarial valuation of the Fund as at 31 March 2022, updated to 31 July 2025 by a qualified independent actuary.

The material assumptions used by the actuary were:

Post retirement mortality assumptions for members retiring in normal health

The sensitivities regarding the principal assumptions used to measure our share of the scheme liabilities as at the valuation on 31 July 2025:

The movement in the scheme's deficit during the year is made up as follows:

26. Consolidated reconciliation of net debt

The movement in net debt during the year is made up as follows:

The table above includes changes in net debt including investments, which have been included to give a fairer representation of the University’s true net debt position as they are available at short notice. The statutory change in net debt, which includes only cash and cash equivalents, and excludes changes in respect of investments is disclosed below.

27. Financial instruments