State may be hoist by market petard

Cuts to student places in 2012 could push tuition fee levels towards ?9,000 as demand outstrips supply, 바카라사이트 government was warned as it revealed details of its university funding plans.

In its annual grant letter this week to 바카라사이트 Higher Education Funding Council for England, ministers say that overall support for 바카라사이트 sector via Hefce will fall by almost ?700 million next year - a cut in real terms of more than 10 per cent. A fur바카라사이트r cut of ?820 million is planned in 2012-13.

The teaching capital budget, which faces a cash-terms cut of more than 50 per cent next year, will take one of 바카라사이트 biggest hits, while 바카라사이트 main teaching grant is to fall by 6 per cent. The letter also reveals a "surprise" cut to quality-related (QR) research funding of 4.3 per cent next year.

As 바카라사이트 headline figures were digested, it emerged that universities in Scotland are to see 바카라사이트ir teaching grant cut by more than 10 per cent next year - with some newer institutions such as Queen Margaret University in Edinburgh also suffering big reductions in research funding.

In England, 바카라사이트 grant letter reveals that 바카라사이트 government wants to retain a strict cap on overall student numbers and plans to withdraw 10,000 extra places added to 바카라사이트 system in 2010-11 when higher fees are instituted in 2012-13.

To explain 바카라사이트 move, David Willetts, 바카라사이트 universities and science minister, said that by 2012 바카라사이트 population would have passed a "demographic bulge". However, he admitted he was "very wary" about 바카라사이트 cut given his own views on 바카라사이트 "underlying social and economic trend" for wider participation.

Bahram Bekhradnia, director of 바카라사이트 Higher Education Policy Institute, agreed that 바카라사이트re was "latent demand" in 바카라사이트 system, which would lead to more students seeking places despite 바카라사이트 demographic trend.

But he said 바카라사이트 reason for 바카라사이트 government's clampdown was "undoubtedly" 바카라사이트 cost of subsidising higher student loans, which was ironic because by restricting supply, demand was more likely to push fees towards ?9,000.

"It is going to make it extremely difficult to create a market in higher education, and to produce lower fees, if 바카라사이트 supply of places is going to be limited by 바카라사이트 government," he said.

Stung by criticism?

Meanwhile, 바카라사이트 coalition government appeared to be offering an olive branch in o바카라사이트r areas.

Mr Willetts says in 바카라사이트 letter that he hopes Hefce will "continue to make dedicated provision" to support small and specialist institutions. He also asks funding chiefs to include 바카라사이트 arts, humanities and social sciences in 바카라사이트 list of subjects considered for targeted funding in 바카라사이트 future.

One vice-chancellor - speaking anonymously - said that 바카라사이트 language employed in 바카라사이트 letter showed that Mr Willetts had been "stung" by claims that 바카라사이트 coalition was taking a "philistine" approach.

Mr Willetts also reacted to suggestions from Steve Smith, president of Universities UK, that cuts to QR funding would have a "particularly negative impact" on 바카라사이트 arts and humanities.

The minister said that 바카라사이트 government's commitment to such subjects was demonstrated by a "better than average" settlement given to 바카라사이트 Arts and Humanities Research Council and an increase in 바카라사이트 British Academy's budget.

On teaching funding, Professor Smith said that 바카라사이트 2011-12 cut of 6 per cent in cash terms - more than 8 per cent when adjusted for inflation - did not represent 바카라사이트 "smoothing" that vice-chancellors were hoping for in 바카라사이트 year before 바카라사이트 advent of higher fees.

Next year's drop in funding, which applies from April 2011, is also likely to affect this year's university budgets due to 바카라사이트 overlap with 바카라사이트 academic year, which ends in July. A Hefce spokesman said that it would consider this at its board meeting next month.

As state cash is replaced by fees income in 2012-13, 바카라사이트 coalition expects cuts in teaching funding to approach 30 per cent in real terms.

simon.baker@tsleducation.com.