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This paper was prepared for meetings of the Financial Sustainability Strategy Group (FSSG) and the TRAC Development Group (TDG) in June and July 2016.

FSSG and TDG agreed to publish the paper, as it provides useful analysis on the financial performance of the higher education (HE) sector for the 2014-15 year when measured on a full economic cost basis. This would be of interest to senior managers and governors of HE institutions, and others interested in understanding the financial position of the UK HE sector.