Cambridge is due to record a £53m deficit for the last year, with an internal report claiming that “there is no clear understanding of what has happened” to the University’s finances.

An annual report by Cambridge’s board of scrutiny blamed static tuition fees and Brexit for the loss, but also pointed towards a “lack of budgetary control” at the University.

The University projects a £53m deficit for the academic year 2023/24, which will fall slightly to £47m in 2024/25.

Though Cambridge’s finance committee aims at delivering a £30m annual surplus in the “long term”, the report reveals that “there is no fully worked-out proposal” to pull the University out of deficit within the next five years.

“The Board has sought explanations for the deficit over and above the explanations applicable to all Higher Education institutions. However, worryingly this has not been fully traced to source, with the result that there is no clear understanding of what has happened, or why,” the report states.

The report says that the University took the “misguided” decision to “abandon” a former financial planning process before a new one was put in place, leading to the institution “flying blind” financially.

But the board, chaired by Murray Edwards bursar Rob Hopwood, also admitted that Cambridge, “like the whole Higher Education sector, […] has faced inflationary pressures (including increased expenditure on energy), no increase in home-fee income, and the shock of Brexit”.

Last year, Varsity revealed that EU undergraduate enrolments had fallen by 19% between 2019/20 and 2020/21.

Cambridge must take a “more strategic, planned approach” to its finances, and avoid “self-defeating” smaller measures, described as “salami slicing’ and tightening of belts”, the report said.

“The continued deficit puts in doubt some of the longer-term aims of the university such as on estates, the people strategy and environmental sustainability,” it warned.

“The university should not be seen as benefiting current students and staff while depriving future generations”.

The deficit figures relate to the University’s central finances and not those of individual colleges. Though the University is able to draw on its endowment and the profits of Cambridge University Press to balance the books, the report warned that the projected deficit highlighted possible “structural” problems and would come “at the cost of the endowment”.

The board laid part of the blame for the projected deficit on a major increase in administrative staff since 2016. The number of non-academic contracts rose 29 per cent to 5,875 over that period, it said.

“The scale of the operating deficit requires meaningful action now,” the board said.

It continued: “Given the pressing challenges the university is facing, the board is of the view that business as usual is not a feasible option […] There is clearly an urgent need to improve planning and financial control.”

UK tuition fees have stood at £9,250 since 2017, but ministers are reportedly considering increasing them to above £10,000. 40% of UK universities are reportedly set to record a deficit this year.

In June, Varsity revealed that King’s College planned to raise tourist fees and some student rents to curb its growing £500,000 deficit.

A Cambridge University spokesperson said: “The university continues to be in a strong and robust financial position. World-leading Cambridge research contributes around £30bn per year to the UK economy.”

“As with other institutions, costs have risen in recent years, largely due to inflation. The focus of reducing costs will be on finding efficiencies and reducing duplication across our operations to allow funds to invest to maintain our position as a world leading university,” they added.