UK universities face big funding cuts

Almost every university in England will see its funding slashed for the next academic year.

New data shows all but five of 130 universities will experience a cash reduction in their grant for the academic year 2011/12.

Although £6.5bn has been distributed to universities and colleges for the year, the overall grant is decreasing by 9.5%, according to the Higher Education Funding Council for England (HEFCE).

But as some special funding programmes are ending, along with the one-year University Modernisation Fund, this brings the total cut to 12.6%.

Teaching and research funding is falling on average by 4%, while capital spending is more than halved.

Newer universities which focus more on teaching than research, and some specialist institutions will be hardest hit.

Just one university, the London School of Hygiene and Tropical Medicine will see a real terms rise in its grant, by 2.2%.

HEFCE chief executive, Sir Alan Langlands, said: “Universities that don’t lose out so much are those that benefit from the very modest nature of the cut in research funding, as opposed to the more significant cut in teaching funding.”

Oxford’s funding in real terms will be cut by 1%, while Cambridge University’s will be cut by 3%.

Sir Alan said it was possible and even “quite likely” that higher education income would hold up during the spending review period if participation levels held up.

The funding settlement comes at a time when universities are deciding on new fee levels for students beginning degree courses in the autumn of 2012.

MPs voted last December to raise tuition fees to £6,000 a year, with institutions able to charge £9,000 in “exceptional circumstances”.

Evidence so far suggests many institutions are planning to charge more than £6,000.

Sally Hunt, general secretary of the University and College Union, said: “There’s a real worry that some universities will not continue to offer excellent courses for the fear that they will not generate enough profit.

“We risk seeing arts and humanities courses and departments shut down and institutions that focus on widening participation being damaged. Purely financial targets should not be the main driver of our higher education system.”
Source: Sky News