THE University of Gloucestershire has appeared on a leaked "at risk" list.

Over recent months the institution has sold one of its campuses, put another up for sale, cut more than 100 staff and reduced its faculty. It's vice chancellor and deputy vice-chancellor have also stepped down.

Now, according to reports in the Sunday Times, it is named as one of four universities at financial risk, after leaked documents, which the Government is alleged to have kept secret, showed many UK universities have been claiming millions of pounds of taxpayers' money for students who do not finish their studies.

The "at risk" list, dating from May 2009, revealed it had been given "special support" by the HEFCE – Higher Education Funding Council for England.

Rachel Jones, a University of Gloucestershire spokesman, said the university was not one of those that claimed money for students dropping out and said its financial difficulties were down to historic debts.

Ms Jones said: "We, like many institutions, have had a tough time in the economic downturn but we've just sold our London campus for £9.7 million.

"We did get the full amount but we used a large chunk of that to pay off our historical financial commitments and we have been left with £800,000 profit after that.

"With regards to the list – it's a fluid list. We may well be off or on it, I could neither confirm nor deny because the list has a three-year release clause on it."

The university's London campus was primarily used for teacher training and recruiting international students.

A dozen staff will be affected by the closure and the university says it is working with them to find options for the future.

The building was acquired for free in 2003, but £8.3m was spent refurbishing it, a programme which ended last February.

University bosses had been heavily criticised for investing in the site since they announced £3m savings were needed by this summer.

They blamed their financial difficulties on cuts to higher education funding and a cap on the number of students.

However, last month Paul Drake, director of communications at the university, said it had turned the financial corner and the £3m deficit had already become a projected surplus of £1m, before the London sale took place. However, its Pittville Campus remains on the market.

"Our academic health was given the seal of approval by the recent Quality Assurance Agency institutional audit and the 2009-10 budget is projected to return a surplus at the financial year end," he said.

The other three universities on the list are London Met, Thames Valley and Cumbria.