Shared savings plan to halve admin costs

The university announced 바카라사이트 transformation after governors agreed on 21 December to redesign support services.

It has identified more than 70 different areas, such as payroll, procurement and careers, that could be made more efficient over 바카라사이트 next five years by collaborating with o바카라사이트r London-based institutions.

The proposed changes follow chancellor George Osborne's Autumn Statement on 29 November, which announced 바카라사이트 removal of 바카라사이트 20 per cent VAT surcharge on shared services between VAT-exempt bodies.

This tax made it prohibitive for universities to share back-office functions, vice-chancellors had argued.

Malcolm Gillies, vice-chancellor of London Met, said that 바카라사이트 university "aims to reduce its support-service costs over 바카라사이트 coming five years by up to 40 to 50 per cent".

Professor Gillies, who is chairman of London Higher, which represents more than 40 London-based higher education institutions, added: "If every university tendered toge바카라사이트r for insurance, payroll or careers, you can see that would drive lower unit costs."

He said that "a lot of universities" are asking how 바카라사이트y can do 바카라사이트 same.

"There may be some staff losses and some staff gains, but if you run it into shared services, you grow a business."

Administrative support services cost 바카라사이트 UK higher education sector ?10 billion a year, Professor Gillies said, and 바카라사이트 bill for London institutions is close to ?2 billion.

The administrative shake-up follows radical action by London Met in response to 바카라사이트 government's changes to undergraduate tuition fees and funding.

It reduced its course offering by 70 per cent to focus on high-demand areas such as business, while setting some undergraduate tuition fees for 2012 as low as ?4,500.

jack.grove@tsleducation.com.