The National Union of Students is facing a radical overhaul to its organisation, slashing staff numbers and selling off its London headquarters to avoid financial collapse, according to a rescue plan to be voted on by its members.

The NUS revealed last year that it had a shortfall of £3.6m, setting off hurried negotiations over the changes needed to stave off bankruptcy for the organisation representing 7 million college and university students in the UK and Ireland.

“Following four months of member consultation, and an extensive cost reduction plan to ensure it remains solvent, NUS has outlined a new governance structure which proposes simplification, a reduction in fees charged to members and a modern approach to campaigning and service delivery,” the NUS said.

Its 600 affiliated student unions and guilds will debate the motion to be presented to its annual conference next month. If successful, the plan aims to sharply reduce the affiliation fee charged to student unions but may face opposition because of proposed cuts to staff and services.

As part of the package, the NUS would sell off its central London headquarters and move the bulk of its operations to Macclesfield, with the proceeds used to pay off existing debts of nearly £2m and contribute to new reserves.

The overhaul proposes slimming down the organisation’s structure, merging it into two parts, described as “student voice” and “student union development,” with both governed by a single board.

Controversially, the changes would lead to the number of full-time executive positions on the union’s political side being slashed from 20 to seven. Under the new structure a national president and country presidents for Scotland, Wales and Ireland would remain, as well as vice-presidents for higher and further education.

But only a single full-time “liberation” post would survive the cuts, compared with the current five individual liberation officers for women, trans, LGBT+, disabled and black students. The post of international officer would also be abolished.

When the proposals were first outlined, the reduction in the number of liberation posts was strongly criticised, including calls for a motion of no confidence against Shakira Martin, the NUS president.

Under the proposals the union’s political officers would see their terms extended from one year to two, in an effort to provide stability.

“Policymaking and elections will be separated allowing the development of modern, innovative, healthy debating spaces – NUS has acknowledged that its democratic spaces have become toxic and inaccessible to many individuals with whom the student movement wants to engage,” the NUS said.

The NUS’s financial struggles follow several unsuccessful attempts at an overhaul, with the recent deficit caused by a sharp fall in income from the NUS’s student discount card, while the organisation’s pension liabilities that have soared above £12m.

This year the union announced it wanted to halve its workforce in response to the financial crisis, by cutting 54 jobs through voluntary redundancies and a hiring freeze.

Affiliated unions are able to submit amendments to the plans until 19 March, before the final vote at the annual conference in Glasgow on 9-11 April.