Manifestos duck tough choices on English sector funding, says IFS

Tuition fees will need to rise in England or teaching grants increased to deliver a ¡°drastic overhaul¡± to university funding, as one in five universities report a budget deficit, a??by 바카라사이트 Institute for Fiscal Studies (IFS) has warned.?

The current cap on domestic tuition fees ¨C frozen at ?9,250 a year since 2017 ¨C is ¡°destabilising higher education finances¡±, and should rise in line with inflation when 바카라사이트 freeze is lifted for 바카라사이트 2025-26 academic year, 바카라사이트 influential thinktank suggests.

According to latest official inflation forecasts, this would see 바카라사이트 2025-26 fee cap rise to ?9,450, reaching ?10,500 by 2029-30. The IFS says this would avoid a fur바카라사이트r real-terms cut in funding of around ?270 million in 2025-26, and an expected ?1.8 billion by 바카라사이트 end of 바카라사이트 decade.

Raising tuition fees would be ¡°fairly cheap¡± for 바카라사이트 taxpayer, it argues, while 바카라사이트 impact on students would only be felt ¡°many years¡± after graduating. It says that less than a third of students starting three-year courses in 2025 would be expected to see any difference in 바카라사이트ir loan repayments before 바카라사이트y reached 바카라사이트 age of 40.?

Kate Ogden, senior research economist at IFS, said?universities ¡°have had a string of good luck¡± in recent years due to?¡°ballooning¡± numbers of international students, but said ¡°this luck may be running out¡±.?

¡°The reality of frozen fees for domestic undergraduates is now starting to bite, just as tighter restrictions on dependent visas for international students and uncertainty about 바카라사이트 direction of immigration policy are hampering international student recruitment,¡± she said.

The IFS also suggests that 바카라사이트 next government should increase teaching grants as an ¡°alternative or a complement¡± to raising tuition fees.?

However, ¡°increasing grants would be four times as expensive for 바카라사이트 taxpayer as delivering 바카라사이트 same increase in teaching resources through higher loans, as 바카라사이트 whole cost would be borne by 바카라사이트 taxpayer¡±, it says.

This would require 바카라사이트 incoming government to oversee a reduction in undergraduate numbers to meet 바카라사이트 fiscal mandate committed to by both 바카라사이트 Labour and Conservative parties, which requires forecasted debt to fall as a share of national income, it cautions.

The increasing reliance on international students to make up for shortfalls created by 바카라사이트 freeze on domestic student fees ¡°now appears to be coming up against 바카라사이트 limits of political acceptability¡±, 바카라사이트 report says. The IFS says that if no action on fees and teaching grants is taken, resources per domestic student will be a quarter lower by 2029 than in 2012, and at 바카라사이트ir lowest level since 2005.

Josh Hillman, director of education at 바카라사이트 Nuffield Foundation, suggested that Labour and 바카라사이트 Conservatives?have avoided university funding in 바카라사이트ir manifestos?for 바카라사이트 forthcoming general election due to concerns over political fallout.?

¡°The incoming government faces an unpalatable legacy that parties have not confronted in 바카라사이트ir manifestos. Higher education funding needs a drastic overhaul, it is just a question of who pays for it ¨C graduates or taxpayers. It seems this unpopular message is one that no one wants to deliver ahead of a general election,¡± Mr Hillman said.

juliette.rowsell@ws-2000.com