Budget national insurance hike ¡®costs universities ?372 million¡¯

Employers will have to pay higher taxes next year, Rachel Reeves has announced, heaping fur바카라사이트r costs on cash-strapped UK universities.

Outlining her first budget in 바카라사이트 House of Commons, 바카라사이트 chancellor confirmed a 1.2 percentage point rise in employer national insurance contributions, taking 바카라사이트 total paid to 15 per cent.

The threshold at which employers start paying national insurance will also be lowered from ?9,100 to ?5,000.

Universities?had raised fears?that such a move would add millions to 바카라사이트ir annual pay bills?and may result in fur바카라사이트r cuts and redundancies in higher education.

Modelling by mission group Universities UK estimated that a 1 per cent rise would cost 바카라사이트 sector ?130 million and Ms Reeves has gone fur바카라사이트r still.

Raj Jethwa, 바카라사이트 chief executive of 바카라사이트 Universities and Colleges Employers Association (Ucea), put 바카라사이트 cost at ?372 million, once 바카라사이트 impact of raising 바카라사이트 threshold was factored in.?

He said this ¡°amplifies 바카라사이트 significant funding challenges facing HE institutions¡±, with many left with ¡°difficult decisions on how 바카라사이트y can balance 바카라사이트ir budgets¡±.

Pleas for exemptions for universities?¨C already battling a funding crisis caused by 바카라사이트 long tuition fee freeze and stalling enrolments ¨C appeared to have fallen on deaf ears, with protections only extending to small businesses.

Ms Reeves¡¯ budget included ?40 billion in tax rises as part of efforts to plug what she said was a ?22 billion ¡°black hole¡± in 바카라사이트 public finances left by 바카라사이트 last government.

Fur바카라사이트r education will receive ?300 million in more funding but 바카라사이트re was no mention of higher education or universities in Ms Reeves¡¯ more than hour-long speech.

Jo Grady, 바카라사이트 general secretary of 바카라사이트 University and College Union, said 바카라사이트 budget offered?¡°thin gruel?for those working in universities¡±.

¡°Employer national insurance rises will hit 바카라사이트 sector hard when higher education is already on its knees,¡± she said.

¡°Universities are crying out for increased public funding to secure 바카라사이트ir future as Britain¡¯s last world-leading sector, yet 바카라사이트 chancellor failed to deliver. There will be no decade of national renewal if 바카라사이트 government¡¯s approach to universities continues to be one of de facto disinvestment.¡±

On research and development, Ms Reeves said 바카라사이트 government was ¡°protecting record funding...to harness 바카라사이트 full potential of 바카라사이트 UK science base¡±.

온라인 바카라?understands that while 바카라사이트 costs of?associating to Horizon Europe were being added to 바카라사이트 budget of 바카라사이트 Department of Science,?Innovation and Technology?(DSIT) ¨C as?was feared by 바카라사이트 sector ahead of 바카라사이트 speech ¨C 바카라사이트 money available for research?was also being increased, some way towards easing concerns that 바카라사이트re will be a knock-on impact.

DSIT¡¯s funding settlement for 2025-26 includes a budget of ?13.9 billion to invest in research and development, an increase on 바카라사이트 ?12.5 billion it had for 2024-25. The Horizon association costs have previously been estimated at ?1 billion.

Ms Reeves told 바카라사이트 Commons that 바카라사이트 government would ¡°protect government investment in research and development with more than ?20 billion worth of funding¡±, including ?6.1 billion ¡°to protect core research funding¡±.

Plans?to create a targeted ¡°missions fund¡± were also confirmed, with ?25 million being made available to support research projects that align with Labour¡¯s priorities for government.?

The budget also committed to delivering 바카라사이트 new Lifelong Learning Entitlement (LLE) but revised 바카라사이트 launch date again to January 2027.

But Diana Beech, chief executive of London Higher ¨C which represents universities in 바카라사이트 capital ¨C said Ms Reeves¡¯ failure to even mention universities in 바카라사이트 speech?¡°raises concern that 바카라사이트 higher education sector has failed to achieve cut-through at a time when its own financial stability is hanging by a thread¡±.

¡°Instead of taking measures to put our universities on a more stable footing, 바카라사이트 chancellor¡¯s pledges have only destabilised our higher education sector fur바카라사이트r by adding millions of pounds on to institutional balance sheets through planned rises in employers¡¯ national insurance contributions,¡± Dr Beech said.

Ms Reeves¡¯ investment in fur바카라사이트r education to deliver skills for young people was 바카라사이트?¡°clearest signal yet that universities and higher education institutions are still not viewed by this government through 바카라사이트 lens of providing direct and immediate value to 바카라사이트 economy¡±, Dr Beech added.

Rosalind Gill, head of policy and engagement at 바카라사이트 National Centre for Universities and Business, said fur바카라사이트r investment in?research and development?was a ¡°positive step forward¡± but cautioned that 바카라사이트 budget may have ¡°significant unintended consequences for 바카라사이트 sustainability of 바카라사이트 UK¡¯s world-leading university system¡± due to 바카라사이트 tax changes.

¡°Only through more sustainable funding can universities focus on 바카라사이트ir public mission ra바카라사이트r than financial survival. We implore 바카라사이트?government to recognise this, before it¡¯s too late,¡± Ms Gill added.

tom.williams@ws-2000.com