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| Universities feel funding squeeze | Universities feel funding squeeze |
| (30 minutes later) | |
| Three quarters of England's universities are facing real-term budget cuts this year - for the first time since Labour came to power. | Three quarters of England's universities are facing real-term budget cuts this year - for the first time since Labour came to power. |
| University funding body Hefce has told institutions how much they will get next year from a fund of £7.3bn - £449m less than the sector was expecting. | University funding body Hefce has told institutions how much they will get next year from a fund of £7.3bn - £449m less than the sector was expecting. |
| Unions are warning of job losses and of thousands missing out on places. | Unions are warning of job losses and of thousands missing out on places. |
| The government says the figures "do not show a system in crisis" and that the sector needs to tighten its belt. | The government says the figures "do not show a system in crisis" and that the sector needs to tighten its belt. |
| After years of rising investment, the government announced just before Christmas that universities would be getting less in the next academic year because of the pressure on public sector finances. | After years of rising investment, the government announced just before Christmas that universities would be getting less in the next academic year because of the pressure on public sector finances. |
| UNIVERSITY FUNDING BBC News website is looking at higher education in a series of features: $200,000 for a degree? More students but who will pay? class="" href="http://www.hefce.ac.uk/finance/recurrent/2010/?o=2">See full funding details here | |
| And last month the body which handles university funding in England for the government, Hefce, said there would be £449m less, with the biggest savings being made in teaching budgets, which would fall by 1.6% in real terms. | And last month the body which handles university funding in England for the government, Hefce, said there would be £449m less, with the biggest savings being made in teaching budgets, which would fall by 1.6% in real terms. |
| Now individual universities have been told what they will receive for the year from September out of a total fund of £7.3bn. | Now individual universities have been told what they will receive for the year from September out of a total fund of £7.3bn. |
| Among the winners, Hefce suggests, are institutions with the highest quality of research. | Among the winners, Hefce suggests, are institutions with the highest quality of research. |
| Research grants for Oxford, Cambridge, University College London and Imperial have grown in the past five years. | Research grants for Oxford, Cambridge, University College London and Imperial have grown in the past five years. |
| But when inflation is taken into account, as well as amounts given for teaching (the largest chunk of the total allocation for England), Cambridge this year will see a real terms cut of 1.9% and Oxford of 1%. | But when inflation is taken into account, as well as amounts given for teaching (the largest chunk of the total allocation for England), Cambridge this year will see a real terms cut of 1.9% and Oxford of 1%. |
| This is partly explained by Hefce's decision to reduce amounts allocated for historic old buildings. | This is partly explained by Hefce's decision to reduce amounts allocated for historic old buildings. |
| The body has also been shifting money towards institutions offering Stem (science, engineering technology and maths) subjects, in line with government priorities. | The body has also been shifting money towards institutions offering Stem (science, engineering technology and maths) subjects, in line with government priorities. |
| Sally Hunt, of the University and College Union explains what the cuts will mean | |
| One of the biggest winners is Worcester, a new university, which got the biggest increase in cash terms (13%) because of its rising student numbers. | One of the biggest winners is Worcester, a new university, which got the biggest increase in cash terms (13%) because of its rising student numbers. |
| Among the biggest losers was London Business School which saw a reduction in funding in cash terms of nearly 12%. Reading faces a 7.7% cut in cash terms. | Among the biggest losers was London Business School which saw a reduction in funding in cash terms of nearly 12%. Reading faces a 7.7% cut in cash terms. |
| After many years of increases, the higher education sector is facing a period of funding pressure. | After many years of increases, the higher education sector is facing a period of funding pressure. |
| This coincides with record numbers of young people wanting to go to university. | This coincides with record numbers of young people wanting to go to university. |
| There has been a year-on-year rise of 23% in people applying to British universities and Hefce predicts the funding changes this year will translate into about 6,000 fewer places in England's universities this September. | There has been a year-on-year rise of 23% in people applying to British universities and Hefce predicts the funding changes this year will translate into about 6,000 fewer places in England's universities this September. |
| With a government-imposed cap on the number of university places, institutions which take more students than they are meant to will face fines. | With a government-imposed cap on the number of university places, institutions which take more students than they are meant to will face fines. |
| Universities in Wales will find out about their future funding on Tuesday. In Northern Ireland, cuts in capital spending have already been announced. | Universities in Wales will find out about their future funding on Tuesday. In Northern Ireland, cuts in capital spending have already been announced. |
| In Scotland, universities were recently told they would receive an extra £40 million for next year, but academics fear cuts will follow the next budget. | In Scotland, universities were recently told they would receive an extra £40 million for next year, but academics fear cuts will follow the next budget. |
| Professor Smith was referring to cash figures given by Hefce, which do not take inflation into account. | Professor Smith was referring to cash figures given by Hefce, which do not take inflation into account. |
| When an inflation rate of 2% is factored in, the proportion of institutions seeing a "real terms decrease" rises from half to three quarters. | When an inflation rate of 2% is factored in, the proportion of institutions seeing a "real terms decrease" rises from half to three quarters. |
| Sally Hunt, general secretary of the University and College Union (UCU), warns thousands of jobs will go and education will suffer. | Sally Hunt, general secretary of the University and College Union (UCU), warns thousands of jobs will go and education will suffer. |
| Like everyone in the current financial climate, institutions have to do their fair share of belt tightening but these figures do not show a university system in crisis David Lammy, Universities Minister | Like everyone in the current financial climate, institutions have to do their fair share of belt tightening but these figures do not show a university system in crisis David Lammy, Universities Minister |
| "After years of rightly encouraging people to go to university, the government is abandoning a generation who, instead of benefiting from education, will find themselves on the dole alongside sacked teaching staff," she said. | "After years of rightly encouraging people to go to university, the government is abandoning a generation who, instead of benefiting from education, will find themselves on the dole alongside sacked teaching staff," she said. |
| "The consequences of the cuts will be building projects on hold, class sizes growing where jobs are lost, thousands of students denied access to university and staff following them to the dole queue. | "The consequences of the cuts will be building projects on hold, class sizes growing where jobs are lost, thousands of students denied access to university and staff following them to the dole queue. |
| But Universities Minister David Lammy said higher education funding had risen by 25% in real terms since 1997. | But Universities Minister David Lammy said higher education funding had risen by 25% in real terms since 1997. |
| "Like everyone in the current financial climate, institutions have to do their fair share of belt tightening but these figures do not show a university system in crisis," he said. | "Like everyone in the current financial climate, institutions have to do their fair share of belt tightening but these figures do not show a university system in crisis," he said. |
| "We now call on all institutions to focus on delivering excellent services to students and our research base, and to manage their costs efficiently, including maintaining discipline on pay." | "We now call on all institutions to focus on delivering excellent services to students and our research base, and to manage their costs efficiently, including maintaining discipline on pay." |
| Shadow universities minister David Willetts said: "Now we know that next year the government is cutting the cash at half of all England's universities. They are the victims of Labour's mismanagement of public finances." | Shadow universities minister David Willetts said: "Now we know that next year the government is cutting the cash at half of all England's universities. They are the victims of Labour's mismanagement of public finances." |
Do you work in higher education or are you a student? What is your reaction to the cuts? You can send us your views using the form below: | Do you work in higher education or are you a student? What is your reaction to the cuts? You can send us your views using the form below: |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |