BOSSES at Lancaster University have been left reeling by a report which claims that a series of top-level decisions left the university in 'deep financial difficulty.' The independent report by Bailrigg's Head of Law, Prof Rowe, revealed how in 1995 the university's finances became 'perilous' after bosses gave the go-ahead to big money schemes without the necessary cash to back them up. Job losses and austere cut backs were needed to rescue the university's funds and a 2,000 name petition calling for an independent investigation led to Prof Rowe setting up a committee to look at what went wrong.

The report says: "In the summer of 1994 at the time of the university's 30th birthday, the future for Lancaster looked very bright. Eighteen months later the university was in deep financial difficulty and facing a set of problems, many of which related to a perilous financial situation and the inevitable unpleasantness of the cut backs that ensued."

In the report Prof Rowe explains that an ambitious building programme, complex finance deals and an 'ill-advised' bid to take-over Charlotte Mason College in Ambleside meant the university had "bit off more than it could chew."

Although one university boss has said he thought everyone involved should consider their positions, no formal disciplinary action has been taken and bosses have admitted that they have learned from what went wrong.

A university spokesman said: "Since the report has been published and the extent of the problem known the university has taken steps to improve the situation. The report is pretty candid but it was not meant to damn anyone. We wanted to make sure that the situation doesn't happen again and we've got a recovery plan in place which is on track."

Despite financial difficulties the university has managed to improve its higher education ranking and is now placed alongside the country's top flight institutions.

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