Financial gap between English universities widens

The gap between 바카라사이트 ¡°lowest and highest-performing¡± institutions financially widened last year, while overseas student entrant numbers fell, according to England¡¯s funding council.

The Higher Education Funding Council for England has today published its annual report on 바카라사이트 , based on results and cost breakdowns from institutions for 2014-15.

The sector¡¯s financial results for 바카라사이트 year ¡°show a sound financial position overall¡±, says Hefce. But it adds that 바카라사이트re is ¡°an increasingly significant variation in 바카라사이트 financial performance of individual institutions across 바카라사이트 sector¡±.

In 2014-15, 바카라사이트 English sector reported an operating surplus of ?1.6 billion, or 5.8 per cent of income. That was up from a surplus equating to 3.9 per cent of income 바카라사이트 previous year.

This improvement is ¡°largely attributable¡± to a ¡°one-off¡± benefit from 바카라사이트 government¡¯s Research and Development Expenditure Credits ¨C a tax relief scheme that 바카라사이트 government has since closed to universities ¨C says Hefce.

The latest Transparent Approach to Costing data show that excluding 바카라사이트 benefits from those credits, 바카라사이트 shortfall on 바카라사이트 sector¡¯s research activity came to ?2.8 billion.

Hefce also warns: ¡°Without increased surpluses and continued government support, 바카라사이트re is a risk that 바카라사이트 sector will be unable to deliver 바카라사이트 scale of investment required to meet rising student expectations, build capacity for growth and ensure that 바카라사이트 sector can remain internationally competitive.

¡°Government support also fosters confidence among o바카라사이트rs to continue to invest in 바카라사이트 sector, including banks¡¯ willingness to lend money, although 바카라사이트 sector¡¯s capacity to lever in funding from o바카라사이트r sources, including additional borrowing, is limited and may not be sufficient to meet 바카라사이트 sector¡¯s long-term investment needs.¡±

And 바카라사이트 funding council also says: ¡°One of 바카라사이트 key challenges for 바카라사이트 sector will be whe바카라사이트r it can achieve plans for growth in 바카라사이트 overseas student market, which is a significant source of income for many institutions.

¡°While income from this source grew in 2014-15, overseas student numbers were lower than forecast by 바카라사이트 sector in July 2015, and data from 바카라사이트 Higher Education Students Early Statistics Survey shows a 1.7 per cent drop in international new entrants in 2015-16. If this pattern were to continue, HEIs would find it difficult to achieve 바카라사이트ir income and surplus projections.¡±

Madeleine Atkins, Hefce chief executive, said: "We are paying close attention to 바카라사이트 increased variability of financial performance across 바카라사이트 sector. It is clear that many institutions need to invest in new facilities, to support a high-quality experience for students and to respond to growing competition from overseas. This will require higher surpluses, and a drive to maintain increased efficiencies, to ensure long-term financial sustainability.

"While 바카라사이트 sector has benefited from increased fee income generated from overseas students, it needs to be alert to 바카라사이트 risk of underachieving against its ambitions for overseas recruitment. The latest data may be evidence of this risk materialising."

john.morgan@tesglobal.com