Sir Paul McCartney performing arts school warns of jobs cuts after predicted £2.5 million loss

Credit: Liverpool Echo

A performing arts institute co-founded by Sir Paul McCartney has warned of jobs cuts due to a predicted loss of more than £2.5 million.

The Liverpool Institute for Performing Arts (LIPA) says staff compulsory redundancies might take place following under recruitment across a range of courses.

LIPA bosses have told staff that compulsory job losses could be considered due to low student numbers, frozen tuition fees and inflation.

It is currently consulting with staff over voluntary redundancies.

A spokesperson for LIPA said that a freezing of tuition of fees and the cost of living crisis had made conditions challenging for the higher education sector.

They added a review was taking place to ensure LIPA could continue to provide world-class training and courses in the city.

An email to staff, seen by the Liverpool Echo, reads: "The cumulative impact of persistent and significant under recruitment across some of our foundation, undergraduate and postgraduate programmes have contributed to a situation whereby our recruitment and budgetary forecasts do not align with actual costs in an increasingly challenging environment of ‘frozen’ tuition fees and increasing inflation.

"The situation is compounded by the fact that under-recruitment to our undergraduate courses has a three-year impact, the combined consequence of which is a loss of projected budgeted income over £2.5m."

The note informed staff that compulsory redundancies might have to take place. It reads: "Regretfully, it is very likely that we will be in the position where we will have to consider compulsorily redundancies. Be assured this is a last resort."

The city's world famous performing arts institute LIPA was co-founded by Sir Paul McCartney. Credit: Liverpool Echo

The email, which was sent to all teaching staff on 22 July, states that the financial situation had worsened over recent weeks.

It reads: "Further to my email to you on 30th June inviting expressions of interest in our Voluntary Severance scheme, I’m writing to let you know that we have decided to extend the deadline for expressions of interest to 4.00 pm on Friday 29th July 2022.

"Unfortunately, since the initial scheme was launched the financial situation has deteriorated."

The email reveals measures taking place to help address the problems.

It reads: "To address the situation for next year we are developing comprehensive processes across the institution, and we have recently engaged an external educational consultancy, The Knowledge Partnership, to undertake a portfolio and competitor analysis to provide data and insights as to the viability and competitiveness of our programmes at undergraduate and postgraduate level as we embark upon the curriculum review process."

A spokesperson for LIPA said: "The after-effects of the pandemic, combined with the freezing of tuition fees and the cost of living crisis, make this a challenging time for all higher education institutions.

"LIPA is in the process of ensuring it is able to continue to deliver world class performing and creative arts training. This includes a review and revalidation of all our courses.

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