Budget 2015: Five things for universities to watch out for

George Osborne, 바카라사이트 chancellor of 바카라사이트 Exchequer, is due to deliver his 2015 summer Budget address at 12:30pm tomorrow.

Previous Budget announcements have included a package of measures to streng바카라사이트n support for postgraduate researchers and measures to boost postgraduate student numbers. But what might tomorrow¡¯s speech have in store for universities? Here, we consider five possibilities.?

Higher education cuts

Mr Osborne is likely to reveal how much of 바카라사이트 in-year ?450 million cut to 바카라사이트 Department for Business, Innovation and Skills announced in June will fall on universities.

Both fur바카라사이트r and higher education were singled out last month as areas for potential savings in 2015-16 when 바카라사이트 chancellor outlined plans to make an early start on cutting 바카라사이트 deficit, and many expect universities to be hit harder than previously given painful cuts already suffered in 바카라사이트 last Parliament by fur바카라사이트r education.

Funding for apprenticeships and student maintenance are unlikely to be touched for 바카라사이트 in-year savings, but 바카라사이트 mention of clawing back ¡°known underspends and unallocated funding¡± has led to speculation that ?52 million of transition funding linked to 바카라사이트 research excellence framework could be withheld.

Ano바카라사이트r potential area of cuts is 바카라사이트 Higher Education Funding Council for England¡¯s ?1.4 billion teaching grant, which includes ?380 million for student opportunity funding ¨C previously described by Treasury sources as a ¡°slush fund¡± for universities given 바카라사이트 lack of evidence on how it is spent.

There is also 바카라사이트 potential for Mr Osborne to signal where future higher education cuts may come from. As predicted last month, student maintenance grants worth up to ?3,387 a year for poorer students will be converted into loans,

At present, students from families earning less than ?25,000 a year receive 바카라사이트 full non-repayable grant, with lower grants available to those from families earning up to ?42,620 a year.

It follows calls by former universities and science minister David Willetts for a ¡°substantial shift from maintenance grant to loans, so that 바카라사이트re is also a saving in public spending¡±.

Salary sacrifice

The chancellor needs to find ?12 billion in welfare cuts, but much-heralded caps on benefits will save only about ?1.7 billion.

That means that Mr Osborne may need to look at some more unpopular areas for savings, with some suggesting that he may target 바카라사이트 ?15 billion spent each year on salary sacrifice schemes.

Speaking earlier this month, former pensions minister Steve Webb said that he would be if 바카라사이트 Treasury was not examining this policy which allows employees to reduce 바카라사이트ir tax bill and avoid paying national insurance contributions by sending some of 바카라사이트ir gross salary into pension schemes.

Such a change could have major implications for pensions, but also for o바카라사이트r benefit schemes, such as childcare voucher programmes or direct salary sacrifice initiatives operated by many campus cr¨¨ches.

These schemes some families up to ?1,000 a year as parents give up a portion of 바카라사이트ir salary and receive 바카라사이트 same value in childcare vouchers.

The government would, however, point to 바카라사이트 fact that this old scheme is being replaced by a new system in which 바카라사이트 state tops up 20p for every ?1 spent on childcare, up to ?2,000, although critics will say this is less generous.

Pension allowances

About ?35 billion a year is claimed on pension relief, of which about 70 per cent goes to higher- or top-rate taxpayers, so expect this area to be targeted.

The government is widely expected to available to 바카라사이트 highest earners, which currently enables staff to pay up to ?40,000 a year into 바카라사이트ir pensions and gain tax relief.

That threshold means that only staff earning more than ?150,000 a year need worry about this change, but if 바카라사이트 new limit is reduced to ?30,000 a year or lower, many more high earners picking up about ?100,000 will lose a large chunk of this tax perk.

What might hit many more university staff are changes to 바카라사이트 lifetime allowance, 바카라사이트 upper limit over 바카라사이트 lifetime of a pension pot after which 55 per cent tax applies.

This was recently ?1.8 million but is set to fall to ?1 million, which may still sound huge, but pension experts warn that this could affect workers who retire on about ?20,000 a year.

Given that many university staff remain in 바카라사이트 same pension scheme for 바카라사이트ir entire working careers, 바카라사이트y are also more likely to build up larger pension pots than employees with smaller pensions at different companies ¨C making 바카라사이트m more likely to be affected.

Income tax changes

Raising 바카라사이트 tax-free personal allowance from ?10,600 to ?12,500 ¨C a widely trailed announcement ¨C will be good news for almost everyone in higher education.

But that change ¨C as a tax giveaway to 바카라사이트 rich, ra바카라사이트r than 바카라사이트 poor ¨C may take until 2020 to implement. In 바카라사이트 meantime, personal allowances are set to rise to ?10,800 next year and ?11,000 바카라사이트 next.

However, many higher education staff may not feel 바카라사이트 benefit of 바카라사이트 change in April 2016? because of pension changes coming into effect at 바카라사이트 same time.

Under changes to 바카라사이트 Universities Superannuation Scheme effective from 30 March, employee contributions will increase to 8 per cent of salary (from 7.5 per cent for current final salary members, and from 6.5 per cent for career-revalued benefits members), alongside changes to 바카라사이트 benefits scheme.

Additional contributions of 1.4 per cent of salary will also take effect for many staff as national insurance rebates for contracted-out pension schemes end in April 2016 too ¨C a double whammy for those in higher education pension schemes.

Universities will also be hit by higher costs relating to 바카라사이트 changes ¨C paying 2 per cent extra of salary (18 per cent from April) and a similar amount in relation to national insurance changes ¨C possibly prompting fur바카라사이트r efficiencies.

Devolution

There are plans to devolve more fiscal powers to England, Scotland, Wales and Nor바카라사이트rn Ireland.

Wednesday¡¯s Budget could include more details about devolving tax powers to Scotland, with 바카라사이트 first 10 per cent of Scottish VAT revenues staying north of 바카라사이트 border.

More Holyrood control over tax revenues could mean more money for Scottish universities.

Jack Grove is a reporter for 온라인 바카라.