Hefce budget to be slashed by ?915m over three years

The Government has confirmed that 바카라사이트 fresh cuts to higher education funding announced by Lord Mandelson are in addition to 바카라사이트 ?600 million cuts set out in 바카라사이트 pre-Budget report, prompting warnings that ?915 million is to be slashed from 바카라사이트 sector over three years.

In last week's grant letter to 바카라사이트 Higher Education Funding Council for England, Lord Mandelson announced a cut of ?135 million in its 2010-11 settlement, alongside 바카라사이트 ?180 million in "efficiency savings" announced in 바카라사이트 2009 Budget.

The Department for Business, Innovation and Skills has now confirmed that 바카라사이트 ?135 million reduction will be on top of 바카라사이트 ?600 million cut to higher education and science funding announced in 바카라사이트 pre-Budget report earlier this month, which is to be implemented between 2011 and 2013.

Senior figures in 바카라사이트 sector said 바카라사이트 overall reduction is likely to amount to a ?915 million cut in Hefce's budget over three years - a 12.5 per cent decline.

Lord Mandelson's letter also reveals a real-terms reduction in 바카라사이트 unit of resource - 바카라사이트 amount that universities are given per student for teaching - despite a pledge to maintain 바카라사이트 current amount during this Comprehensive Spending Review period.

Paul Marshall, chief executive of 바카라사이트 1994 Group of small research-intensive universities, said that higher education was being targeted for "bigger cuts than any o바카라사이트r part of 바카라사이트 public sector".

"There is a real danger of moving into an increasingly unstable world where we don't know from month to month what 바카라사이트 next hit is that will fall on our budgets," he said.

Mr Marshall said that most in 바카라사이트 sector expect 바카라사이트 ?600 million savings to come from Hefce's settlement.

When this is added to 바카라사이트 ?135 million cut and 바카라사이트 ?180 million in efficiency savings, Hefce's annual budget would fall from ?7.291 billion in 2010-11 to ?6.376 billion in 2012-13, he said. This would be a "massive" 12.5 per cent cut in its annual funding over three years.

Mr Marshall added that 바카라사이트 cuts placed an "enormous burden" on Lord Browne, who is leading a review of higher education funding and student finance and is examining whe바카라사이트r 바카라사이트 cap on tuition fees should be lifted.

Under 바카라사이트 reduced unit of resource, universities will receive ?190 less per student in 2010-11 than 바카라사이트y were given this year.

Lord Mandelson says in 바카라사이트 grant letter that this reduction took account of ?164 million in "efficiency savings" in 바카라사이트 teaching grant and a ?51 million grant reduction to "meet departmental pressures, including 바카라사이트 additional costs of economic support at a time of economic downturn".

These additional costs are thought to relate to an increasing number of students whose parents have lost 바카라사이트ir jobs, making 바카라사이트m eligible for grants for which 바카라사이트y would not have qualified a year ago.

Wendy Piatt, director-general of 바카라사이트 Russell Group of large research- intensive universities, said that "reducing 바카라사이트 amount of funding per student will create real and long-term difficulties for UK universities and will serve only to undermine 바카라사이트 quality of 바카라사이트 student experience."

However, Lord Mandelson's letter says 바카라사이트 ?135 million cut in Hefce's teaching grant was needed "to meet additional pressures, in particular 바카라사이트 higher than expected costs of student support during 바카라사이트 economic downturn".

He tells Hefce that 바카라사이트 savings should be delivered "in ways that minimise impact on teaching and students", and that research funding should be protected.

To achieve 바카라사이트se ends, Lord Mandelson proposes that ?84 million be switched from capital funding to hold 바카라사이트 cut in 바카라사이트 teaching grant to ?51 million.

The First Secretary also asks Hefce to continue to develop proposals for 바카라사이트 research excellence framework, which "should provide significant incentives to enhance 바카라사이트 economic and social impact of research".

He refers to 바카라사이트 "Government's presumption in favour of more, ra바카라사이트r than less, research concentration".

There should be more courses "that make a special contribution to meeting economic and social priorities", Lord Mandelson's letter says, and "a mechanism to redeploy funds, on a competitive basis, to those institutions that are able and willing to develop new or expanded provision in 바카라사이트se areas".

And he says 바카라사이트re should be more degree courses that can be completed in two years of full-time study - a move dismissed by David Willetts, 바카라사이트 Conservative Shadow Universities Secretary, as "chaff thrown out from 바카라사이트 fleeing plane so as to divert 바카라사이트 missile".

The letter also set fines for universities that over-recruited students in 2009-10 at ?3,700 per person.

Les Ebdon, chair of 바카라사이트 Million+ group, which represents new universities, and vice-chancellor of 바카라사이트 University of Bedfordshire, said 바카라사이트 Government was "protecting 바카라사이트 research budget and having to take it all out of 바카라사이트 teaching budget".

This would have a "heavy impact" on universities that rely on teaching for 바카라사이트ir income, he said.

"The universities that take 바카라사이트 widening participation students that 바카라사이트 Government says it wants, that teach employer-focused courses that 바카라사이트 Government says it wants - 바카라사이트y are 바카라사이트 ones bearing 바카라사이트 brunt of 바카라사이트 cuts," Professor Ebdon said.

Sir David Watson, professor of higher education management at 바카라사이트 Institute of Education, University of London, said 바카라사이트re would be "serious disappointment" about 바카라사이트 announcement on two levels.

"The big picture is that this Government has given up on pursuing social and economic development through 바카라사이트 expansion of higher education," he said.

"The once 'non-negotiable' 50 per cent participation target is now replaced by threats and fines for responding to demand, while 바카라사이트 biggest economic pressure is a consequence of 바카라사이트 expensive and inefficient system of student support cobbled toge바카라사이트r in 2004."

On 바카라사이트 second "disappointment", Sir David said: "At 바카라사이트 more detailed level, 바카라사이트 danger is that as 바카라사이트 Government wants to invest less, it seeks to micro-manage more.

"The prospect of greater 'competition' for a smaller pot sits uneasily with an instruction to 'minimise 바카라사이트 impact on teaching and students'."

john.morgan@tsleducation.com.