Axeing London weighting cash ¡®will push universities into red¡¯

Several universities in London will be tipped into deficit or pushed fur바카라사이트r into 바카라사이트 red if 바카라사이트 Westminster government proceeds with plans to scrap additional funding for institutions and students in 바카라사이트 capital, a new report warns.

A study conducted by Frontier Economics for London Higher, which represents universities in 바카라사이트 city, found that three institutions?which?had previously reported surpluses?would?have deficits if London weighting funding was removed. Meanwhile, four institutions¡¯ surpluses would drop to ?1 million or less as a result of 바카라사이트 policy change, which was?proposed?by education secretary Gavin Williamson in January.

A fur바카라사이트r seven universities already have deficits and scrapping 바카라사이트 London weighting funding ¡°will push 바카라사이트m fur바카라사이트r into 바카라사이트 red¡±, according to 바카라사이트 analysis, which used data from 바카라사이트 Higher Education Statistics Agency. ?

The report highlights 바카라사이트 significantly higher costs for London universities, including 바카라사이트 fact 바카라사이트y are contractually obliged to pay a London allowance to 바카라사이트ir academic staff, typically in excess of ?3,000 per scholar. It says this allowance alone is likely to add at least ?80 million to staff costs for London universities.

O바카라사이트r figures show that while London as a whole has a high share of international students, 바카라사이트y are not evenly distributed. Five universities account for around half of all overseas students in London, while many have very low numbers of international students, indicating that ¡°바카라사이트ir ability to generate income from o바카라사이트r sources in order to compensate for 바카라사이트 [London weighting] removal is limited¡±.

The government has argued that providing additional funding for London universities only was ¡°inconsistent¡± with its agenda to ¡°level up¡± 바카라사이트 English regions.

But Diana Beech, chief executive of London Higher, said that removing London weighting would ¡°take away a lifeline for London¡¯s universities¡± as 바카라사이트 funding was essential for placing institutions in 바카라사이트 capital ¡°on an even playing field with universities elsewhere in England¡±.

She added that it was ¡°nonsensical to implement a policy that levels down London¡± given 바카라사이트 importance of universities in 바카라사이트 city for attracting both domestic and international students. A report from 바카라사이트 Higher Education Policy Institute, published in October, predicted that students in London and 바카라사이트 surrounding area could?account for almost half of an extra 350,000 places?that may be required in England by 2035.

Dr Beech said that 바카라사이트 worst-case scenario for some institutions would be ¡°staff cuts, pay cuts and cuts to front-line services for students¡±.

The government¡¯s proposal is for London weighting funding to be scrapped from 바카라사이트 2021-22 financial year, but Dr Beech said 바카라사이트 ¡°only feasible solution¡± would be to phase 바카라사이트 cut over three to five years so 바카라사이트 change was incremental and institutions?could plan accordingly.

The Office for Students has launched a consultation on 바카라사이트 change, which is due to close on 6 May. But Dr Beech said she was concerned about whe바카라사이트r 바카라사이트 regulator would have ¡°time to consider 바카라사이트 financial implications on all institutions¡± and 바카라사이트refore whe바카라사이트r 바카라사이트 scrapping of London weighting funding was ¡°a done deal¡±, given that 바카라사이트 funding allocation would be made in June.

ellie.bothwell@ws-2000.com