University Budget Cut by £449 Million

By Rosanna Lloyd

It was announced last Monday that England's university budgets are being cut by £449m, leading student places to be reduced by an estimated 6,000 in the next academic year.

The Higher Education Funding Council for England have stated that teaching budgets are to be reduced by £215m, a cut in real terms of 1.6% on 2009-10 levels. The research budget will be maintained but capital funding will be reduced by 14.9 percent in real terms.

The pressures come as universities face unprecedented demand for places - with some institutions reporting increases in applications of more than 20%. Despite this, the Government still holds true to its claim that cuts to University funding will not leave students disappointed in the race for vital places next academic year.

Wes Streeting, President of the National Union of Students, said the cuts were not the "apocalyptic scenario" some had feared but would still have "serious consequences"."I don't understand how universities came to be first in line for cuts. We don't consider ourselves immune but it’s a strange choice. The cuts do seem to threaten irreversible damage to higher education.”

Here in Exeter, the Head of Press and PR, Stuart Franklin, remains confident that the University is in “very good financial shape compared to the majority”. He believes that “the University sector is doing all it can to make the case to government that no further cuts should be made” despite it being patently clear that “public finances are under pressure and higher education has to take its share of the cuts.”

Franklin states that Exeter University has

“already removed 5% from budgets this year in anticipation of cuts [and is] continuing to recruit new academic staff and build new facilities for students. The important point to remember is that universities only get about a third of their income direct from government (about £88m on a turnover of £240m) and our other income streams are holding up well.”

Student Guilds’ President Richard Stearn states that:

“The effects on Exeter are currently unknown but I imagine they will translate into a reduction in the support available to students and possibly a reduction in student numbers. As for the region itself the great work that Exeter, Plymouth and Tremough do for the economy cannot be underestimated and hence I see this move having a long term impact here.”

All Universities across the UK are expected to receive their individual budgets next month.