News & Views item - February 2011

 

 

  Higher Education Funding Council for England Cuts £940m from Universities' Budgets for Teaching, Research, Buildings... a 9.5% Cut.

 David WillettsHigher Education Funding Council for England (HEFCE) announced today a 9.5% (£940m) cut in its public funding. HEFCE distributes government money to universities and colleges in England (there are similar bodies in Scotland, Wales, and Northern Ireland). In a letter to vice-chancellors, the funding council said budgets would be cut to £6.5bn for the next academic year (2011-12).

 

The teaching budget will be reduced by £180m to £4.3bn – a 4% cut in cash terms.

 

The research grant will be cut by £17.4m to £1.6bn – a 1.1% reduction, and HEFCE stated that in future grants will be concentrated on departments with higher quality ratings for their work, i.e. mainly the bigger, more prestigious universities.

 

Grants for capital projects, such as new buildings, have been cut by 58% in cash terms to £223m. Last academic year, universities received £532m for building works.

 

And universities learned that they will have an in-year (2010-11) cut for the first time.  They will now receive £190m less than they had planned for this academic year.

 

David Willetts, State for Universities and Science told the universities: "It is essential that universities move quickly to prepare for the different environment in which they will operate in future years, striving to meet the aspirations of students for high quality teaching. As well as benefiting from investment in student support, the higher education sector will continue to benefit from sustained ring-fenced investment in science and research."

 

Paul Marshall, director of the 1994 Group which represents small, research-intensive universities, told the Guardian the cuts would mean "a rough ride for the UK economy. In his spending review statement last year, the chancellor [of the exchequer]  referred to universities as the jewel in the UK's economic crown, but the sweeping funding cuts confirmed in today's letter show that universities will need to work harder than ever to make their contribution."

 

Not until March will England's universities receive their individual budgets.