Local businesses have shared their views about the potential for 400 job cuts at Lancaster University.
A number of local businesses and individuals believe that Lancaster’s economy relies on its status as a university town, as both students and staff are a vital part of business.
The interviews with LancsLive comes following the announcement of industrial action commencing Monday 10th November.
University staff that are members of Lancaster University and Colleges Union (UCU) announced the industrial action in reaction to university consideration of cutting 400 jobs. The immediate action will be “action short of strike” in which staff work strictly to the terms of their contract, with future strike action on the horizon.
Lancaster city centre market stall holder Mike Gallavan told LancsLive:”Anything that impacts on students will undoubtedly affect business and stallholders. Around half of my customers are students. I have a stall here every Wednesday. Lancaster’s a good city.”
The local businessman furthered that universities provide great financial opportunities for local businesses as they bring many students and staff as potential customers.
Lancaster University campus becomes home to market stalls weekly on Thursdays in Alexandra Square, where students get the opportunity to frequent local businesses from 10am -4pm.
Organisers of the event, Lancaster University Students’ Union says the stalls represent “importance of buying local and (where possible) organic produce in relation to conservation of the environment and goods from local businesses to help the local economy thrive”
Furthermore, Strong Fruits and Vegetables stall member Jill Dukes said: “Students probably make-up between 10 and 20 per cent of our customers. Generally, many young people are vegetarians and interested in local food and independent businesses, so they’re good for a stall like this.”
Many businesses reinstated the important role of international students in the local economy, a topic the Office of Students had said in May 2025 was the main reason for the worsening financial situation of universities.
Lancaster University Pro-Vice Chancellor Sarah Kemp had previously told city councillors that falling international students were amongst the key reasons why the university needs to save a total of £35 million in July 2025.
Jill Dukes added: “There’s a lot of Chinese students too. They arrive in September, find their feet over a few weeks and discover all the local shops and businesses. They’re important too.”
Eunice Lam and Fiona Han, operators of Chinese sauce and food stall Mama’s Fire, said: “Chinese students are among our customers and there still seems to be plenty of them. There are also Chinese restaurants in the city centre. There’s a good mix of food businesses.”
They further added: “Our recipes are based on own our mums’ cooking. We make all the food all ourselves. I think Chinese students like to come to the stall, buy something and talk about their families back home.”
The Lancaster Tab reached out to Lancaster University for comment, they said:
“Lancaster University recognises we are an important part of the local and regional economy; nurturing and attracting talent to our city, feeding into the skills pipeline, offering employment and supporting enterprise and partnerships that reach from Lancashire across the world.
“In the light of financial pressures impacting the whole UK university sector, including a decline in international student numbers, Lancaster University is having to make very difficult but necessary decisions. As part of this process the University is seeking cost savings of £30M from our payroll budget across both academic and professional services. This means a proposed full-time equivalent (FTE) staff reduction of approximately 417 FTE staff out of a population of 3,344 FTE staff – a reduction of around one in eight.
“No compulsory redundancies have been announced and at this stage we are still making every effort to try to find these savings through voluntary means – a process which is currently underway in consultation with our trade unions.
“We recognise that this period of change is a deeply unsettling time for our staff, students, and the communities we serve, and we do not enter into this process lightly. However, achieving financial sustainability is essential to securing the University’s future. The University is determined to remain a recognised sector leader which has a transformative impact on students’ lives and on the communities in which we operate.”
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