By Lydia Blundell
The National Union of Students (NUS) have announced that they are on the verge of bankruptcy, after failing to meet their projected £3 million deficit this year with reserve funds.
The NUS released a statement regarding the matter: “The boards, officers and executive team are agreed that we need to deliver fundamental corporate, democratic and financial reform by summer 2019.
“The NUS failed to meet their projected £3 million deficit with reserve funds.
“This means there will be a range of proposals brought to a strategic conversation meeting in November 2018 for consideration and refinement with the help of our members, and subsequently to national conference 2019 to be voted on by our members.”
NUS president Shakira Martin, along with CEO Peter Robertson, also sent out a letter to Student Union presidents and Chief Executive’s throughout the country to announce their financial situation. The letter refers to “competition in student discounts” as a reason behind their financial struggles. Unidays and Student Beans both offer students free accounts which can then provide them with discounts from numerous stores.
Comparatively, the NUS charged £12 for their NUS extra card, also providing two and three year cards at prices of £22 and £32 respectively. The NUS recently replaced the extra scheme, which was their main source of income, with a Totum card to better serve their members and to try and rival their competitors.
To remain solvent, the NUS will be borrowing against the building and making cuts.
The letter announces that the NUS are facing “competitors in student discount, trading support and policy and strategic support. We have faced challenges to all three of these income streams, but rarely to all three at the same time.”
Looking forward, Martin states that in order to remain solvent the company will be, “borrowing against the building we own, making cuts to staff and turning off some of the activity we deliver.”