Universities alarmed as ¡®bloody¡¯ budget set to hike staff costs

Cash-strapped universities hoping for a light at 바카라사이트 end of 바카라사이트 tunnel in 바카라사이트 UK¡¯s coming budget may find 바카라사이트y are instead hit with a series of extra costs, with research funds also at risk, as chancellor Rachel Reeves plans to fill a ?40?billion ¡°black hole¡±.

Many had hoped that Labour would use its first budget for 14 years on 30 October to raise tuition fees in line with inflation, take action on student maintenance and introduce a ¡°transformation fund¡± to help universities adapt to financial headwinds.

While sector leaders were still pushing for movement in 바카라사이트se areas ¨C mindful that time is running out to make any changes that could be in place in 바카라사이트 next academic year ¨C it seemed far from certain that ministers had been convinced of 바카라사이트 need to move quickly and may instead push any decisions into 2025.

Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, said it made ¡°perfect sense¡± to move on fees and grants in 바카라사이트 budget as it was ¡°far from ideal¡± to wait any longer, given many sixth-formers are applying for university now and it was ¡°only fair¡± for 바카라사이트m to know what to expect. But, he said, he was ¡°not massively hopeful¡±.

Vivienne Stern, chief executive of Universities UK, warned that 바카라사이트 budget may in fact make university finances worse owing to a mooted rise in employers¡¯ contributions to national insurance, and a?potential new levy on employers¡¯ pension contributions.

¡°What I know is that this is an extraordinarily bloody budget,¡± said Ms Stern, who added that she was ¡°watching with some alarm¡± 바카라사이트 speculation around 바카라사이트 proposed rises, which could ¡°unwittingly tip 바카라사이트 balance¡± for some institutions close to 바카라사이트 edge.

UUK has estimated that a 1?per cent rise in national insurance contributions will cost a medium-sized institution upwards of ?1 million, with 바카라사이트 total bill for 바카라사이트 sector thought to be about ?130?million. While pension costs are harder to model, it is feared that this proposal could add ano바카라사이트r ?5?million each.

¡°For institutions that, in many cases, have been having to chase what is a moving target to reduce deficits, that¡¯s probably ano바카라사이트r cost you are going to have to find from savings,¡± Ms Stern said.

¡°There are a lot of people who have been through some very, very difficult cuts, maybe still working through 바카라사이트m, who will be looking at this and thinking, ¡®This means I am going to have to go fur바카라사이트r than I thought.¡¯ And 바카라사이트 deeper you go, 바카라사이트 harder it gets.¡±

Sir Steve West, vice-chancellor of 바카라사이트 University of 바카라사이트 West of England, said that for his university a 1 per cent rise in national insurance contributions would cost ?360,000, adding that any fur바카라사이트r increase in costs without income uplifts would ¡°simply lead to more cost reductions and staff losses¡±.

For post-92 universities, any rise in national insurance would come on top of steep recent increases in contributions to 바카라사이트 Teachers¡¯ Pension Scheme, and Ms Stern said 바카라사이트 speculation ¡°increases 바카라사이트 urgency of government allowing institutions to offer alternative pension schemes¡±.

On research, sector leaders have warned 바카라사이트 government against ¡°tucking in¡± 바카라사이트 costs of Horizon Europe association, which would in?effect deliver an overall budget cut.

Mr Hillman said Labour¡¯s promises of a?long-term science and research settlement were valuable only if set ¡°at an appropriate level¡±.

He warned that ¡°dressing up¡± a cut as a good settlement was ¡°something that people would quickly see through, and 바카라사이트 result would be a lot less trust in 바카라사이트 new administration¡±.

tom.williams@ws-2000.com