Lincoln Bishop University exploring options due to 'challenging financial environment'

Lincoln Bishop University says it’s exploring options as it navigates a “challenging financial environment”.

The institution – previously known as Bishop Grosseteste University – reported a £6.1million deficit for the 2024/25 academic year, following £3.1million the year before.

Its 2025 annual accounts warned that its funds would be “insufficient to cover the low points during the year”, although it has since received support from a private group.

The university, which has 2,800 students, has been highly-rated despite its financial problems, being voted best for teaching in the UK last year. 

A spokesperson for LBU said: “Like many universities across the sector, we are operating in a challenging financial environment and are taking proactive steps to strengthen our long-term sustainability.

“This includes the development and delivery of our Strategy 2030, which focuses on driving sustainable growth and enhancing our civic and economic impact. 

“As part of this, we are actively exploring a range of options to support the University’s future development.

“Our focus, as always, remains on delivering for our students and colleagues as we continue to build a strong and sustainable future for the University.”

Lincoln MP Hamish Falconer has issued a statement saying: “I have been working closely in recent months to support Lincoln Bishop University.

“As people will be aware, the university has been facing a challenging period, but remains a cornerstone of our city and continues to play an important role.

“I have been engaging with the university and the University and College Union and I will continue to do everything I can to support students, staff and the wider community.”

The university secured a loan last year from the private Global University Systems, which it formed a “strategic alliance” with.

Its 2025 annual report said: “The level of deficit, together with the liquidity position presented a significant financial risk to the University.”

It reported that income rose by £1.3million in the last academic year thanks to extra accommodation income, however this was offset by £4.6million of extra costs.

The institution was founded in 1862 as a training college, and became the city’s second university in 2006.