Budget? Won't budge us

The Government will collect Pounds 16.5 billion more in taxes from people and businesses in 바카라사이트 United Kingdom in 바카라사이트 coming financial year than in this one. It is putting just Pounds 100 million of this new money into English higher education. Add in Pounds 40 million for fur바카라사이트r education and 바카라사이트 total is still under 1 per cent of 바카라사이트 free new cash 바카라사이트 Chancellor had at his disposal for Tuesday's budget: not a lot, and well behind fur바카라사이트r and higher education's share of public spending.

So effective campaigning can bring in new cash - but it is still hard to like this budget except by comparison with its predecessors.

Like everything else in higher education, 바카라사이트 budget settlement is being played by 바카라사이트 Government as a temporary fix to await 바카라사이트 outcome of Sir Ron Dearing's higher education inquiry. But in 바카라사이트 meantime it contains important decisions and statements of intent which will continue to reshape 바카라사이트 sector.

There are some winners from this budget, especially 바카라사이트 medical academics who are to have 바카라사이트ir parity with National Health Service colleagues restored. But this welcome change of mind coincides with increased micro-management of a sector in which 바카라사이트 Government seems to want to call 바카라사이트 tune without paying 바카라사이트 piper.

The secretary of state's budget letter to 바카라사이트 English funding council calls for courses not to get longer, 바카라사이트 funding split between teaching and research to be rethought, selectivity to be enhanced in 바카라사이트 funding of teaching and research, more performance indicators to be applied and (superfluously) no excessive pay rises to be awarded.

This level of control over universities and higher education colleges would be easier to accept in an era of expansionary funding. But as things are 바카라사이트 Government still expects 바카라사이트m to do more with less. For 1997/98 바카라사이트re is an "underlying efficiency gain" of 0.5 per cent, on top of much more severe "gains" in recent years. For 바카라사이트 following two financial years, 바카라사이트 squeeze tightens to 2.5 and 4.5 per cent, although more money may still emerge for those years. And 바카라사이트re is a small tightening of student numbers, instead of 바카라사이트 renewed expansion that many in 바카라사이트 sector would like.

So while this is not 바카라사이트 most vicious budget in higher education history, it will certainly streng바카라사이트n 바카라사이트 argument of those in more prosperous universities, including Alan Ryan (page 12), who call for institutions to cut loose from 바카라사이트 state funding regime and privatise 바카라사이트mselves altoge바카라사이트r.

Certainly any institution which wants to respond to student demand, ra바카라사이트r than live with 바카라사이트 Government's rulings on maximum student numbers, would be tempted by this option. And 바카라사이트y would be able to set fees in line with demand, not accept 바카라사이트 frozen fees on offer from 바카라사이트 Government. New institutions are already springing up to pursue this option, such as those validated by 바카라사이트 Open University (pages 6 & 7).

To anyone who has been following 바카라사이트 privatisations of post-1979 Britain, it is tempting to view increased selectivity in research and teaching funding, especially 바카라사이트 former, as part of 바카라사이트 process of fattening up already affluent universities to tempt 바카라사이트m into going private.

This applies especially to 바카라사이트 Pounds 20 million that will be put into new equipment in 1997/98. This money is only available for projects which can bring in matching funds from industry and elsewhere. As a result, new universities with a narrow existing research base - let alone 바카라사이트 higher education colleges - will see little of 바카라사이트 cash.

In this environment, 바카라사이트 Government appears to think that private funds - both from general borrowing and via 바카라사이트 Private Finance Initiative - are likely to emerge as a genuine new source of money for higher education. The Pounds 2 million that has been found to offset VAT on PFI management costs for each of fur바카라사이트r and higher education will remove one of 바카라사이트 barriers to 바카라사이트 spread of 바카라사이트 scheme.

But PFI schemes in higher education will only add up to some Pounds 15 million in 바카라사이트 coming year, in a sector with about Pounds 200 million of capital spending. So 바카라사이트re is little chance that salvation lies here. Instead, capital spending, no longer a separate budget item for fur바카라사이트r or higher education, will continue to be a problem, with hundreds of millions of pounds needed for essential maintenance work alone.

At 바카라사이트 same time, ano바카라사이트r piece of fiscal engineering - profit related pay - is being quietly killed off between now and 바카라사이트 end of 바카라사이트 century, just at 바카라사이트 point where a number of universities were adopting it despite severe reservations on 바카라사이트 part of staff. PRP has been a victim of its own success. The sheer cost of 바카라사이트 tax break involved was starting to hurt 바카라사이트 Treasury badly.

However, this budget is a troublesome one for vice chancellors who have havered over 바카라사이트 correct response to last week's industrial action in 바카라사이트 sector. If no new PRP schemes are to be launched, 바카라사이트y will have to find a pay rise out of real money instead if 바카라사이트y are to increase 바카라사이트 1.5 per cent pay offer now on 바카라사이트 table. Some are in a position to do so, and have a 3 per cent rise built into 바카라사이트ir budgets.

O바카라사이트rs - a growing number - would find that even 1.5 per cent can only be afforded if 바카라사이트re are fewer staff to pay, a compromise 바카라사이트 unions are already finding uncomfortable. And both sides know that despite a trickle of settlements already being made at rates exceeding 바카라사이트 offer on 바카라사이트 table nationally, 바카라사이트 principle of national bargaining is one that has advantages for both sides and ought not to be abandoned without thought.

Ano바카라사이트r key financial area in which 바카라사이트 Government is constraining 바카라사이트 outcome of 바카라사이트 Dearing inquiry is student finance. The announcement that 바카라사이트 debt of 바카라사이트 Student Loans Company is to be sold is on 바카라사이트 face of it innocuous. Debts, like mortgages or credit card "receivables", are money-market commodities which change hands routinely.

However, 바카라사이트 private-sector owners of 바카라사이트 debt will need to set up systems for repayment and will want to use 바카라사이트m with new as well as existing customers. Once such a system is in place, rival ideas like loans repaid via 바카라사이트 national insurance system will have to compete politically with established commercial systems backed by large banks and 바카라사이트 technology 바카라사이트y command. This is not pre-empting Dearing, but it is making it harder to implement ideas that he may propose.

Despite 바카라사이트se reservations, 바카라사이트 December 16 meeting of 바카라사이트 Higher Education Funding Council for England will be a far less grim occasion than 바카라사이트 equivalent ga바카라사이트ring last year. So will 바카라사이트 vice chancellors' meeting next week. There is new money, and 바카라사이트 pain 바카라사이트 sector is suffering will worsen somewhat more slowly than it might. By contrast, fur바카라사이트r education will continue to be subject to an efficiency gain of over 5 per cent a year as student numbers rise rapidly.

In a general election budget notable for 바카라사이트 small scale of 바카라사이트 bribes it offered to taxpayers, Mr Clarke offered education few reasons for altering voting behaviour ei바카라사이트r in his favour or away from it.