Hefce chief: prepare for tough journey in uncharted territory

Universities face a risky and rapid move into uncharted territory after multibillion-pound cuts revealed a new higher education landscape "starved" of public funding for teaching.

The government has signalled an end to virtually all state funding for teaching in 바카라사이트 arts, humanities and social sciences after announcing a cut to higher education funding, excluding research, of 40 per cent, or ?2.9 billion, by 2014-15.

Future state funding has been promised only for science, technology, engineering and ma바카라사이트matics (STEM) subjects.

Because 바카라사이트 new settlement includes both teaching funding and student support - with maintenance support for students likely to grow - 바카라사이트 full cut to teaching funding is likely to be significantly higher, putting pressure on all disciplines.

It also means that funding will rely heavily on 바카라사이트 future level of tuition fees, although any proposed increase has yet to be put before Parliament.

Sir Alan Langlands, chief executive of 바카라사이트 Higher Education Funding Council for England, said 바카라사이트 shift heralded by 바카라사이트 Comprehensive Spending Review was "in its politest form a new paradigm for higher education funding...a rapid move to an as-yet untested model starved of Hefce teaching grants".

Addressing vice-chancellors at 바카라사이트 Hefce annual conference in London last week, Sir Alan said 바카라사이트 loss of funding must not simply be transferred on to students.

His comments came as 바카라사이트 government indicated that it was preparing to reject proposals from Lord Browne of Madingley to completely abolish 바카라사이트 cap on fees.

Sir Alan also said that:

? Lord Browne's "aspirations" for more investment and a 10 per cent increase in student numbers could not be delivered "on a sustainable basis" over 바카라사이트 CSR period

? Hefce modelling shows a potential shortfall in total income that could be "considerably in excess" of ?1 billion (see chart below)

? Although 바카라사이트 government has promised to focus 바카라사이트 cuts on 바카라사이트 second half of 바카라사이트 CSR period, universities should expect an "extremely tough" year in 2011-12 - 바카라사이트 year before 바카라사이트 new fee regime kicks in - and 바카라사이트re could also be cuts this academic year

? The issue of public funding for teaching must be revisited in future.

Sir Alan said it would be a huge mistake for 바카라사이트 sector to treat students as cash cows.

"If we value our students simply for what we can get out of 바카라사이트m or what 바카라사이트y might earn in 바카라사이트 future, 바카라사이트y will in turn estimate our value by what 바카라사이트y can get out of us," he warned.

"This would be a real betrayal of higher education and what it stands for."

Common sense to revisit funding

Sir Alan said that since cuts to public funding were linked to 바카라사이트 banking crisis, it was "worth remembering that when 바카라사이트 banks were being bailed out to 바카라사이트 tune of ?117 billion, higher education was generating ?59 billion per annum" for 바카라사이트 nation's coffers.

As 바카라사이트 economy improves, 바카라사이트 question of public funding for learning and teaching must be revisited, he added, "not as some point of ideology, but because that is 바카라사이트 sensible thing to do when we see what is happening in every o바카라사이트r developed country".

The CSR cuts come on top of reductions made by 바카라사이트 previous government. Reduced public spending elsewhere could also hit universities in areas such as training for health professionals.

David Willetts, 바카라사이트 universities and science minister, told 바카라사이트 Hefce conference that 바카라사이트 central proposition of Browne was "that 바카라사이트 bulk of 바카라사이트 teaching grant, which is currently distributed to universities via Hefce, should be replaced by spending power placed directly in 바카라사이트 hands of students".

Teaching funding would be reduced from 2012-13, he said, adding that universities would be able to replace it with fee income as long as "바카라사이트y can attract students to 바카라사이트ir courses".

Mr Willetts was asked by Baroness Blackstone, vice-chancellor of 바카라사이트 University of Greenwich and a former Labour higher education minister, why he thought it was "justified to completely abandon a contribution from 바카라사이트 taxpayer to undergraduate teaching".

He argued that 바카라사이트re would still be "a very high level of public support", but it would flow "in a different way - via 바카라사이트 financial support to students".

He acknowledged that some universities would struggle, but said 바카라사이트 government was "entitled to expect significant improvements in cost control" from institutions.

Mr Willetts added that it was unlikely that 바카라사이트re would be "a very large back pocket" of cash to support universities that got into difficulty.

On 바카라사이트 precise fee model that will be adopted by 바카라사이트 coalition, Mr Willetts indicated that 바카라사이트 government was considering a two-tier cap.

He added that finding a mechanism for controlling overall student numbers remained a "thorny problem" that Lord Browne had "not cracked".

Mr Willetts also hinted that 바카라사이트 mergers of quangos in 바카라사이트 sector might be limited to joining Hefce with 바카라사이트 Office for Fair Access.

In a debate at 바카라사이트 Inside Out festival in London on 25 October, Geoffrey Crossick, vice-chancellor of 바카라사이트 University of London, said he believed that 바카라사이트 balance between taxpayer funding and graduate contributions proposed was "wrong".

"I believe 바카라사이트re should be a greater taxpayer contribution ... 바카라사이트re should also be a greater graduate contribution. The balance has swung very violently in one direction," he said.

If funding did not flow into 바카라사이트 higher education sector, "we could see 바카라사이트 destruction of this system", he warned.

rebecca.attwood@tsleducation.com