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On the face of it, you could argue that a severe cut to operating surpluses would be an optimistic outcome for OfS registered higher education providers over the next few years.

The rise in the costs of living puts pressure on the costs of doing business (everything from materials to salaries), while the real terms freeze in fee income means less spending power overall. Providers are looking on the optimistic side (especially regarding recruitment) but plausibly upbeat averages conceal a huge variety of financial risks.

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