Goldsmiths VC warns university could enter cash crisis by August 2027 as staff begin strike

Goldsmiths, University of London could enter a cash crisis by August 2027, interim vice-chancellor David Oswell has warned in a letter to all staff, as workers prepare to begin indefinite strike action from 8th June.

Oswell warned that under the university’s worst-case financial scenario, Goldsmiths would “exhaust our finances” due to low cash flow, adding that “not changing is unfortunately not an option” as the university is “spending cash from our reserves every month just to stand still”.

The strike was called by the University and College Union (UCU) after Goldsmiths imposed 100 per cent pay deductions on staff participating in a marking and assessment boycott, even where those staff continued carrying out other duties.

Oswell, who assumed the role of interim vice-chancellor in October following the departure of former vice-chancellor, Frances Corner, wrote that the industrial action “shows that the union and some of its members are unfortunately not facing up to the harsh financial realities which we, alongside so many others in our sector, are sadly having to address and overcome.”

He added that, under the university’s “worst-case” financial scenario, in which no operational changes are made and student numbers do not increase,  Goldsmiths would “exhaust our finances which would see our operations severely threatened by August 2027 due to low cash flow.”

“This is a very real threat,” Oswell wrote. “So not changing is unfortunately not an option: we are currently spending cash from our reserves every month just to stand still, keep the lights on and keep operating. This is not sustainable.

“Despite setting this out with real clarity to GUCU, the union does not appear to want to recognise the situation and has instead chosen a path which adds additional risk and pressure on our institution.”

Oswell also warned that upcoming summer recruitment activities, including open days and degree shows, could be negatively affected by the industrial action, “causing reputation damage and risk to recruitment and retention.”

Responding to the letter, UCU co-president Joe Newman said it demonstrated that university leadership was “rattled and scared” by the planned strike action. He argued that risks to recruitment emerged “from the moment they called 100 per cent [pay] deductions.”

Referring to previous restructuring programmes at Goldsmiths, Newman said this was the “third time” the institution was “crying wolf.”

“It’s not that Goldsmiths students and staff don’t see that student numbers have been declining, as have staff numbers, and that this is a very difficult time in the sector. We have challenges at Goldsmiths, we know that.

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“But to come back for the third time in five years to say ‘if we don’t do this, we go kaput’, it starts to lose its credibility a third time round.”

Newman also criticised the university’s approach to negotiations, saying that management had declined mediation talks and that the staff-wide email “simply to address our strike action feels completely disingenuous.”

“We are not naive about the challenges, but we do think that to share this information this way and to cast aspersions on us as being people who don’t understand the facts really doesn’t hold much water,” he said. “It feels to us that they are using yet again this ‘sky is going to fall in’ narrative to justify their ideological cuts.”

A spokesperson from Goldsmiths, University of London said: “It’s deeply disappointing that the union has chosen to go on strike because the action threatens to significantly impact our students’ ability to graduate or progress through the university. We have put in place a range of measures to support students at this time and we are doing everything we can to help them move forward.

“We have a statutory and moral duty to ensure our students progress, including through marking and assessment. Given the significant impact of ASOS or strike action on our students and their progress we believe it is appropriate to make 100 per cent deductions for partial or full withdrawal of labour.

“We have been meeting regularly with the unions and have made a range of offers to them including a further voluntary severance scheme for academics, but this has been declined.

“Goldsmiths has agreed to Acas (Advisory, Conciliation and Arbitration Service) conciliation talks on the dispute and we are working with Acas to find a date in the near future, subject to GUCU and management’s availability.”

Goldsmiths UCU has been contacted for comment.

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