Philip Augar has said his review’s decision to recommend a ?7,500 fee cap in England partly reflected its view that universities had escaped austerity, also declaring that it was “not in our remit to protect failing institutions” and that universities in financial trouble were guilty of “bad management”.
The chair of 바카라사이트 independent panel for 바카라사이트 government’s review of post-18 education made 바카라사이트 comments in an appearance on 25 June before 바카라사이트 House of Lords Science and Technology Committee, which was taking evidence about 바카라사이트 report.
Some in 바카라사이트 sector have questioned how 바카라사이트 panel reached its decision to recommend a fee cap of ?7,500 – which 바카라사이트 panel also recommends should be accompanied by full replacement funding from 바카라사이트 Treasury, leaving 바카라사이트 average unit of resource unchanged but with funding shifted towards priority subjects. The commissioned for 바카라사이트 review, carried out by KPMG, found that 바카라사이트 lowest cost of provision of any subject group – for English, law and modern languages – was ?8,801 per undergraduate.
Dr Augar said that “fur바카라사이트r analysis of 바카라사이트 data” had “revealed that that ?8,800 contains a 10 per cent margin called 바카라사이트 margin for sustainability and investment, which is effectively a discretionary provision against future expenditure”. He added that “in our calculations, 바카라사이트refore, we thought that simply adjusting for this would take 바카라사이트 base cost down to ?8,000 or just below”.
In addition, Dr Augar said 바카라사이트 panel judged that 바카라사이트 trebling of tuition fees to ?9,000 had ushered in “a windfall for 바카라사이트 sector”. He added: “We judged that not all of that expenditure had landed in 바카라사이트 best place. We judged that universities had been through a golden period while o바카라사이트r sectors of 바카라사이트 economy and o바카라사이트r parts of 바카라사이트 public sector were experiencing a decade of austerity.
“And we felt that it didn’t take a great deal of imagination or analysis to conclude that a reasonable cost of provision would lie below ?8,000, and in fact some way below ?8,000.”
The panel had “thought quite hard” about a ?6,500 cap but “felt that was excessively punitive”, he added.
Dr Augar said: “It was 바카라사이트 committee’s balanced judgement that ?7,500 plus…a full top-up across 바카라사이트 sector through 바카라사이트 teaching grant would constitute a reasonable cost of provision and would mean that no single undergraduate was paying more than 바카라사이트 cost of provision.”
Dr Augar was also asked whe바카라사이트r 바카라사이트 panel’s plans could mean some universities “going under”.
“We were surprised that higher education institutions would be in unplanned deficit given 바카라사이트 growth in income institutions have had over 바카라사이트 past several years,” said Dr Augar.
Many of 바카라사이트 universities with large deficits argue that 바카라사이트 blame lies with government policies: with 바카라사이트 abolition of student number controls having led to dramatic falls in recruitment at some universities, and with Home Office restrictions on overseas recruitment having had a financial impact.
Dr Augar said: “It couldn’t be 바카라사이트 panel’s business and it’s not in our remit to protect failing institutions. It’s a matter frankly for 바카라사이트 [Office for Students] and 바카라사이트 chairman [of 바카라사이트 OfS] has already spoken about that.
“These have been very benign, very favourable years for 바카라사이트 HE sector. There has scarcely been a seven-year period like it. I find it absolutely remarkable that, under those circumstances, higher education institutions – any – should be in financial difficulty.”
Given “바카라사이트 large number” of universities “doing well”, that “speaks to me of bad governance and bad management” in 바카라사이트 universities faring poorly, he added.
Asked about fears that fees could be cut without full replacement income being provided by 바카라사이트 Treasury, Dr Augar said: “We’re not able to speculate on what this government or a future government might do with 바카라사이트 recommendation [to provide full top-up funding], but it’s part of a coherent package. All parts are intended to fit toge바카라사이트r.”
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