This study was based on the data of the funding scale, income and expenditure structure and academic output level of the Russell Group universities from 2013 to 2022. By using methods such as the Granger causality test and the two-way fixed effects model, it analyses the relationship between the funding scale, structure and the academic output. The research findings are as follows: The overall funding scale of the Russell Group universities shows an upward trend, with a relatively balanced income and expenditure structure and a significant siphon effect in research funding. The relationship between funding income and expenditure and academic output exhibits significant asymmetry and non-linearity. The increment of total income has a significant positive non-linear impact on PUB, while the increment of total expenditure has a significant negative linear impact on N&S. There are also significant differences in the impacts of different income structures and expenditure purposes on the academic output. Tuition fee has positive non-linear impacts on PUB and HiCi, while grant and donation have negative impacts on PCP. Staff costs have a negative linear impact on N&S but a non-linear positive impact on PCP. The results indicate that optimising the funding structure is crucial for improving the academic output level. This study also discusses how external economic conditions such as inflation or changes in government policies affect funding and expenditures, as well as the implications for the construction of elite universities in China. Additionally, suggestions for future research are put forward.