On 2 June, Universities UK chief executive Vivienne Stern told the House of Commons Treasury Committee that Education Secretary Gillian Keegan would write to the Office for Students within days to confirm a reduction in the Strategic Priorities Grant, as reported by Research Professional News. The Strategic Priorities Grant, formerly known as the teaching grant, provides direct public funding for high cost subjects such as medicine, science, and engineering, as well as support for disadvantaged students and institutions in areas of low participation. While the exact scale of the cut remains unconfirmed, Stern warned that the sector is already under significant financial pressure. Universities UK data shows that 40 percent of institutions reported a deficit in the 2022 23 academic year, with projections indicating this could rise to 75 percent by 2026 27 if current funding trends continue. Sector leaders have raised concerns about the timing of the cut, which follows a prolonged freeze in tuition fees and rising inflation. The Russell Group has previously noted that the real terms value of undergraduate fees has fallen by 27 percent since 2012, increasing reliance on international student fees to cross subsidise domestic teaching and research. The Institute for Fiscal Studies estimates the sector faces a funding gap of 5.2 billion pounds by 2026 27 without additional support. The Department for Education has stated that the grant will be reallocated to align with national priorities, including further education and vocational training. A spokesperson told Research Professional News that the grant would continue to support "high cost, high value subjects," though no details were provided on which disciplines might see reduced funding. The Office for Students has announced plans to consult on the grant’s distribution later this year. Stern has called for an urgent meeting with Keegan to clarify whether the cut is a one off measure or part of a longer term funding shift. Without further clarity, universities may be forced to reduce widening participation programmes, scale back course offerings, or seek alternative revenue streams such as corporate partnerships or commercial ventures. The Treasury Committee is expected to publish its findings on higher education funding before the end of June.