Higher Education at a Crossroads: What CFOs and Talent Leaders Must Tackle Next
By Public Sector & Not-For-Profit

The UK university sector is facing unprecedented pressure – from frozen tuition fees and fluctuating international enrolments to increasing demands for digital innovation and workforce agility. For Finance Directors and Heads of Talent, the question is no longer if change is needed, but how fast they can adapt. 

At Cedar, we’re seeing five strategic themes reshape the higher education landscape—each with profound implications for finance leadership and the hiring market. 

 

1. The Realities of a Funding Squeeze

With domestic tuition fees until recently capped at £9,250 since 2017, universities are still effectively operating at a loss for each UK student. The real-term value of those fees has dropped significantly, placing enormous pressure on core funding models, although the increase fee cap announced by government for the 2025/26 academic year (to £9,535), will help bridge the gap in a small way. 

The sector has long relied on international student fees to balance the books, but September 2024 decline in overseas enrolments—down 12.8%—has left many institutions exposed. 

CFOs must now look beyond cost-cutting. We’re seeing forward-thinking universities: 

  • Explore commercial partnerships and spinouts
  • Leverage estates for additional revenue
  • Reevaluate course portfolios based on demand and profitability

But with financial teams stretched, the ability to scenario-plan, model, and adapt quickly hinges on having the right people—not just qualified accountants, but commercially-minded business partners. 

 

2. Optimising for Agility, Not Just Efficiency

Process improvement used to be a back-office initiative. Now, it’s a front-line imperative. 

Institutions like the University of Sheffield have embedded Lean methodologies to streamline everything from admissions to procurement. Others are reengineering student learning processes, like the REAP project in Scotland, which rethinks assessment to drive learner autonomy. 

For CFOs and FDs, this shift demands: 

  • Finance systems capable of real-time reporting and strategic modelling
  • People who can marry financial discipline with operational transformation

In our recruitment briefs, we’re increasingly asked for candidates who can challenge the status quo—not just ‘keep the books’. 

 

3. Redefining Talent and Skills in Finance Teams

The war for finance talent is no longer just a private sector problem. Many universities are experiencing high turnover, especially at the qualified and part-qualified level. 

Why? Because hybrid roles, higher salaries, and faster progression often lure professionals away from academia. Yet universities have something powerful to offer—purpose, flexibility, and the chance to make a social impact. 

The institutions winning the talent race are those who: 

  • Clearly define career paths within finance
  • Invest in developing business-partnering skills
  • Embrace skills-based hiring—valuing adaptability, systems experience, and stakeholder engagement as much as qualifications.

 

4. Strategic Options Demand Strategic Finance Talent

In uncertain times, having the right people around the table is just as critical as the options being considered. Cedar works with a wide network of experienced finance professionals—from interim FDs to commercially focused analysts—who bring deep experience from across higher education and the wider public and not-for-profit sectors. 

These individuals can support your institution with: 

  • Financial modelling to assess cost-saving or revenue-generating options. 
  • FP&A experts to maximise revenue streams, build financial models for future projects, and financial transparency
  • Evaluating partnership, merger or spinout opportunities
  • Leading transformation programmes or ERP implementations
  • Acting as trusted advisors during restructuring or leadership transition

Whether you need immediate interim support or are planning a long-term leadership hire, Cedar can help you find finance professionals who not only understand the sector, but also know how to move it forward. 

 

5. From Survival to Strategy: The Case for New Thinking

Some institutions are taking bold steps. Goldsmiths, University of London, recently received a £6m philanthropic donation—including a highly valuable art collection—a move that has offered a vital financial lifeline and potentially a blueprint for others in arts education. 

But the path ahead will demand more than donations. It will require: 

  • A rethink of the finance function’s role—from scorekeeper to enabler
  • Greater collaboration between finance and HR to align workforce plans with financial resilience
  • Leaders who can translate volatility into opportunity

Final Thought 

The higher education sector stands at a crossroads. Institutions that invest in adaptive finance leadership and talent strategies will emerge stronger—not just financially, but reputationally. 

For universities, the future won’t be decided by rankings or recruitment numbers alone—but by the resilience of the teams behind the scenes. 

At Cedar, we work with finance and talent leaders across the higher education sector to navigate complex financial challenges and future-proof their teams. Whether you need interim leadership to guide critical transformation programmes, commercially minded finance professionals to drive new revenue opportunities, or experienced specialists to strengthen governance and reporting, we can help.

If you’re rethinking your finance function or looking to build the leadership capability needed for a more resilient future, our education sector specialists are ready to support you. Get in touch today.