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University had 'sub' to pay staff | University had 'sub' to pay staff |
(about 1 hour later) | |
A cash-strapped university came close to not paying its staff wages last month, the BBC has learned. | A cash-strapped university came close to not paying its staff wages last month, the BBC has learned. |
The University of Cumbria, which is nearly £30m in debt, had to receive a cash advance from the Higher Education Funding Council for England (HEFCE). | The University of Cumbria, which is nearly £30m in debt, had to receive a cash advance from the Higher Education Funding Council for England (HEFCE). |
Union officials said when they were shown its books it looked like the university had run out of money. | Union officials said when they were shown its books it looked like the university had run out of money. |
The university's vice chancellor said it received HEFCE help, but now had a "credible business plan." | |
Earlier this year it was confirmed the university, which only opened in August 2007, was closing its Ambleside campus as part of a money saving programme. | |
That also saw the scrapping of plans to build a new £70m headquarters in Carlisle, cuts in courses and the loss of 200 jobs. | That also saw the scrapping of plans to build a new £70m headquarters in Carlisle, cuts in courses and the loss of 200 jobs. |
Watch list | Watch list |
The University of Cumbria is one of several institutions on an HEFCE watch-list of vulnerable universities. | The University of Cumbria is one of several institutions on an HEFCE watch-list of vulnerable universities. |
We're being subbed Dr Trevor Curnow, Universities and Colleges Union | We're being subbed Dr Trevor Curnow, Universities and Colleges Union |
But union officials have said that the cash crisis in Cumbria is so acute it was touch-and-go last month whether staff salaries would be paid. | But union officials have said that the cash crisis in Cumbria is so acute it was touch-and-go last month whether staff salaries would be paid. |
Dr Trevor Curnow, of the Universities and Colleges Union (UCU), told Radio 4's The Report: "We get to see the accounts and we sent them to head office and the conclusion was, 'you've run out of money'. | Dr Trevor Curnow, of the Universities and Colleges Union (UCU), told Radio 4's The Report: "We get to see the accounts and we sent them to head office and the conclusion was, 'you've run out of money'. |
"My understanding is HEFCE has advanced money from next year's allowance - so we're being subbed from HEFCE." | "My understanding is HEFCE has advanced money from next year's allowance - so we're being subbed from HEFCE." |
Business plan | Business plan |
Professor Peter McCaffery, the university's vice chancellor, told the BBC: "Because of the deficit our cash reserves are not as great as they once were. | Professor Peter McCaffery, the university's vice chancellor, told the BBC: "Because of the deficit our cash reserves are not as great as they once were. |
"We had applied to HEFCE with regard to a cash advances as far as seeing us through this particular period." | "We had applied to HEFCE with regard to a cash advances as far as seeing us through this particular period." |
Prof McCaffery, who has been in the role for 10 months, said the university had been working co-operatively with HEFCE which was supporting its efforts to stabilise its finances. | Prof McCaffery, who has been in the role for 10 months, said the university had been working co-operatively with HEFCE which was supporting its efforts to stabilise its finances. |
He added: "We have got a credible business plan, approved by the board at the end of March." | He added: "We have got a credible business plan, approved by the board at the end of March." |
An HEFCE statement said it had been monitoring the university's development since its creation in 2007. It added that it had introduced a higher level of strategic support in October 2009 when "new management and financial information indicated a deterioration in the university's financial position". | An HEFCE statement said it had been monitoring the university's development since its creation in 2007. It added that it had introduced a higher level of strategic support in October 2009 when "new management and financial information indicated a deterioration in the university's financial position". |
It went on: "We have supported the university in developing its new long term, sustainable business plan." | It went on: "We have supported the university in developing its new long term, sustainable business plan." |
Cumbria is not alone in facing protracted belt-tightening, as UK universities face up to £1bn worth of cuts. | Cumbria is not alone in facing protracted belt-tightening, as UK universities face up to £1bn worth of cuts. |
And the body which represents universities fears this could get worse in the next six years. | And the body which represents universities fears this could get worse in the next six years. |
Professor Steve Smith, head of Universities UK, told the BBC: "We've had work for us done by the Institute of Fiscal Studies which says by 2015/16 the university sector could be set to lose another 20-25% worth of funding." | Professor Steve Smith, head of Universities UK, told the BBC: "We've had work for us done by the Institute of Fiscal Studies which says by 2015/16 the university sector could be set to lose another 20-25% worth of funding." |
Describing the scenario as "pretty scary" Professor Smith added that this level of cuts would reduce the "quality, reputation and standing" of British universities. | Describing the scenario as "pretty scary" Professor Smith added that this level of cuts would reduce the "quality, reputation and standing" of British universities. |
The Report is on BBC Radio 4 on Monday, 19 April at 2000 BST. You can also listen via the BBC iPlayer after broadcast or download the podcast. | The Report is on BBC Radio 4 on Monday, 19 April at 2000 BST. You can also listen via the BBC iPlayer after broadcast or download the podcast. |