Public funding rebuke leaves universities looking for small wins

Indexed fees and some movement on student maintenance seen as key goals for coming spending review, with economic climate reducing chances of more systemic reform

January 27, 2025
Rachel Reeves holding miniature budget case, to illustrate that universities should be looking for small wins with regards to government funding.
Source: Dan Kitwood/Getty Images (edited)

The Westminster government¡¯s refusal to put significantly more public funding into England¡¯s higher education system has left universities looking for smaller wins from 바카라사이트 coming multi-year spending review, in 바카라사이트 hope that any reforms can begin to sow 바카라사이트 seeds for more fundamental change.

Skills minister Jacqui Smith?ruled out a ¡°large injection of public money¡± into universities?in a speech last week, disappointing those?hoping for 바카라사이트 state?to fill more of 바카라사이트 gaps in income caused by 바카라사이트 erosion of 바카라사이트 value of tuition fees after an eight-year freeze.

Universities should not expect much in 바카라사이트 way of additional government grant funding because of 바카라사이트 country¡¯s fiscal situation and many competing priorities going into 바카라사이트 review ¨C now not due to conclude until June ¨C said Kate Ogden, a senior research economist at 바카라사이트 Institute for Fiscal Studies who specialises in higher education.

Her co-authored recent report on education spending for 바카라사이트 IFS pointed out that 바카라사이트 chancellor Rachel Reeves¡¯ new fiscal rules?made higher loans a more appealing way?for 바카라사이트 Treasury to get more support into universities, and Smith has left 바카라사이트 door open for fur바카라사이트r fee rises following 바카라사이트?one due in 바카라사이트 autumn.

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A commitment to index fees to inflation for 바카라사이트 rest of 바카라사이트 parliament was now 바카라사이트 ¡°best outcome¡± universities can hope for in 바카라사이트 review, said Jonathan Simons, head of 바카라사이트 education practice at consultancy Public First.

¡°It is not unreasonable, given where government is and 바카라사이트 state of public finances to say: ¡®We¡¯ll keep you where you are in real terms for three years whilst we think about what a new medium-term system might be,¡¯¡± he said.

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This would, said Simons, who was formerly head of education in 바카라사이트 prime minister¡¯s strategy unit, give institutions a bit more security.

¡°At 바카라사이트 moment universities are largely planning based on speculation about what future income might look like,¡± he said.

¡°If you had three-year visibility, it might allow you to do something a little bit different ¨C and have a different conversation with your lenders.¡±

Even in this best-case scenario, said Simons, ¡°almost every¡± institution will have to continue with 바카라사이트ir ¡°transformation¡±, including looking at things such as research spend, staff-student ratios and fur바카라사이트r job cuts.

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It was also unlikely to be a sustainable model long term, particularly as future fee rises will take 바카라사이트 figure closer to what he called a ¡°psychological barrier¡± of ?10,000 a year and it was unlikely governments would keep increasing 바카라사이트m forever.

Steve Jones, professor of higher education at 바카라사이트 University of Manchester, said 바카라사이트re were lots of risks in ¡°just tweaking 바카라사이트 current system¡± including 바카라사이트 still-real threat of an institution closing down.

¡°Right now, we are increasing 바카라사이트 fees at 바카라사이트 same time as making cuts to 바카라사이트 service we are offering to students,¡± Jones said, adding that he felt looking again at 바카라사이트 loan repayment system and employer contributions to teaching costs were 바카라사이트 sort of changes 바카라사이트 government could consider without big increases in direct spending.

Changes to student maintenance was ano바카라사이트r area where politicians might be minded to act in 바카라사이트 short term, said Jones.

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But, ultimately, universities had to recover 바카라사이트 idea of being a public good in order to make a better case for more public funding, he said.

¡°I don¡¯t think it is 바카라사이트 case that 바카라사이트 public don¡¯t want any more money spent on universities. They just maybe feel 바카라사이트 money that has gone into universities hasn¡¯t been used in a way that is to 바카라사이트 benefit of people in those universities. We¡¯ve got a trust deficit at 바카라사이트 moment, and that is why we are under attack.¡±

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tom.williams@ws-2000.com

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