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| Version 4 | Version 5 |
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| University funding cut by £398m | University funding cut by £398m |
| (about 3 hours later) | |
| The government is to cut university funding in England by a total of £398m for 2010-11 compared with this year, Business Secretary Lord Mandelson said. | The government is to cut university funding in England by a total of £398m for 2010-11 compared with this year, Business Secretary Lord Mandelson said. |
| In a letter to the Higher Education Funding Council For England (Hefce), he also asks universities to protect quality and access to higher education. | In a letter to the Higher Education Funding Council For England (Hefce), he also asks universities to protect quality and access to higher education. |
| His letter confirms efficiency savings of £180m and £83m - and adds a further £135m budget reduction. | His letter confirms efficiency savings of £180m and £83m - and adds a further £135m budget reduction. |
| The Tories said they would make another 10,000 university places available. | The Tories said they would make another 10,000 university places available. |
| The government also wants to see more degrees completed over two years rather than three as a way of easing the funding crisis and to broaden education to a wider range of students. | The government also wants to see more degrees completed over two years rather than three as a way of easing the funding crisis and to broaden education to a wider range of students. |
| These Foundation and Fast-track degrees tend to appeal to those doing more vocational subjects such as engineering and law. | These Foundation and Fast-track degrees tend to appeal to those doing more vocational subjects such as engineering and law. |
| We now have the bizarre situation that universities are being fined for meeting targets set by this government David WillettsShadow universities and skills secretary | We now have the bizarre situation that universities are being fined for meeting targets set by this government David WillettsShadow universities and skills secretary |
| The new reduced allocations are £84m taken from the capital funding budget, and £51m from teaching. | The new reduced allocations are £84m taken from the capital funding budget, and £51m from teaching. |
| Among the £398m cuts, which were earlier incorrectly reported as being £533m, a promised £109m increase in research funding is maintained. | Among the £398m cuts, which were earlier incorrectly reported as being £533m, a promised £109m increase in research funding is maintained. |
| But Lord Mandelson also says some universities have recruited more students than they should have - so asks the Hefce to claw back £3,700 per student where this has happened, to cover the costs of their financial support. | But Lord Mandelson also says some universities have recruited more students than they should have - so asks the Hefce to claw back £3,700 per student where this has happened, to cover the costs of their financial support. |
| Lord Mandelson's letter makes it clear that last year's U-turn on extra student numbers was a one-off "responding to the particular needs of the time" - that will not be repeated in 2010-11. | Lord Mandelson's letter makes it clear that last year's U-turn on extra student numbers was a one-off "responding to the particular needs of the time" - that will not be repeated in 2010-11. |
| There was a public outcry about the numbers who would not get places, especially when more people wanted to go to university. | There was a public outcry about the numbers who would not get places, especially when more people wanted to go to university. |
| The popularity of higher education has been attributed in part to the lack of alternatives in the recession. | The popularity of higher education has been attributed in part to the lack of alternatives in the recession. |
| Shadow universities and skills secretary, David Willetts, said of the over-recruitment penalties: "We now have the bizarre situation that universities are being fined for meeting targets set by this government. | Shadow universities and skills secretary, David Willetts, said of the over-recruitment penalties: "We now have the bizarre situation that universities are being fined for meeting targets set by this government. |
| "This year as a combination of a demographic bulge and the recession, more young people wished to attend university. | "This year as a combination of a demographic bulge and the recession, more young people wished to attend university. |
| "Unlike the government we don't believe in artificial targets. Our view is that higher education should be available to all those who are qualified by ability and attainment to pursue them and who wish to do so." | "Unlike the government we don't believe in artificial targets. Our view is that higher education should be available to all those who are qualified by ability and attainment to pursue them and who wish to do so." |
| Severe pressure | Severe pressure |
| He said a Conservative government would offer an additional 10,000 more, fully-funded, university places to enable more young people to enter university next year. | He said a Conservative government would offer an additional 10,000 more, fully-funded, university places to enable more young people to enter university next year. |
| The vice-chancellors' organisation Universities UK said the higher education sector understood the current pressures on public spending and was playing a key role in tackling many of the long-term challenges facing the economy. | The vice-chancellors' organisation Universities UK said the higher education sector understood the current pressures on public spending and was playing a key role in tackling many of the long-term challenges facing the economy. |
| But these cuts would put universities in England under severe pressure. | But these cuts would put universities in England under severe pressure. |
| "We will need to clarify urgently whether these cuts form part of the £600m reductions identified in the recent pre-Budget report," said its president, Professor Steve Smith. | "We will need to clarify urgently whether these cuts form part of the £600m reductions identified in the recent pre-Budget report," said its president, Professor Steve Smith. |
| "A reduction in the public funding per student could seriously threaten our ability to offer the high-quality experience our students deserve and expect." | "A reduction in the public funding per student could seriously threaten our ability to offer the high-quality experience our students deserve and expect." |
| And he noted that it was the rising cost of student support in the recession that was causing much of the funding squeeze - making the ongoing Browne review of student finance all the more important. | And he noted that it was the rising cost of student support in the recession that was causing much of the funding squeeze - making the ongoing Browne review of student finance all the more important. |
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