Southampton University is on the brink of a ‘credit crunch’ after borrowing £372 million last year
The University had the highest percentage increase of money borrowed over the last two years
The Times reported that The University of Southampton is forth in the country for how much money it has borrowed in the last two years. The report stated that Southampton had the highest percentage increase of all the UK universities, upping it's borrowing by 371 per cent, from £79 million (2015/16), to £372 million (2016/17).
The Times wrote that: "Universities have been warned that they are on the brink of a “credit crunch” after embarking on a record borrowing spree despite deep uncertainty over their financial future."
Over the last couple of years, Southampton has installed new hardware and software laboratories in the school of engineering and computer science. As well as new life sciences labs, an innovation campus for geomechanics and infrastructure engineering. £36 million was also spent on a new hall of residence.
This huge increase in borrowing also coincides with the controversial pay rise of the Vice Chancellor who was eventually earning £424,000 per year in 2017. Southampton University was also reported to be at the top of a league table of vice-chancellor pay, spending nearly £700,000 in 2015-16.
The Soton Tab have approached the University for comment.