Many of you will already be aware that Wednesday’s Government Spending Review signaled a radical set of changes to how higher education is funded in this country.
Professor Don Nutbeam comments:
“At Southampton‚ we recognise the Government’s commitment to reduce public expenditure and that universities are not immune to these pressures.
“The University community has participated in many ways to a strong defence of public funding for science. In the context of very significant cuts to public expenditure‚ we are encouraged to see that the funding for science and research has been maintained in cash terms. This is a good outcome for British research‚ and demonstrates that the Government understands the vital role of research in supporting economic growth.
“In education, the Browne Review, published last week, made a radical set of proposals that would lead to a substantial withdrawal of Government funding for university teaching and remove the existing cap on tuition fees. In the Spending Review, the Government appears to have largely accepted these ideas, but we have yet to see detailed proposals.
“At Southampton, we have not actively sought an increase in student fees. However, given the significant reduction to Government funding announced in the Spending Review, Browne’s proposals represent a viable way of funding an internationally competitive higher education sector and maintaining current levels of participation.
“We share concerns on the impact of higher fees on widening participation in higher education. It’s worth restating that under the proposals, students do not pay fees at the time of their education. The proposed student loan system is based on graduate repayment of loans linked to earnings, and under the proposals 20 per cent of the lowest earners will be better off than under existing arrangements. No one earning less than £21,000 will pay anything. We also welcome the commitment from the Government to establish a National Scholarship Fund to provided dedicated support for students from disadvantaged backgrounds.
“While we await further details, we will commence discussions with students and staff on the ways we can best respond to this new environment. We can be sure that increased tuition fees will increase expectations about the quality of what we offer our students, and we will continue to work hard to improve the both the quality and flexibility of our education over the coming years. In particular, we will be actively exploring the options for accelerated learning, for those who wish to complete their degrees more quickly than the standard three years, and ensure that structures are in place for those who want to mix full time and part time study.
“The University has taken significant steps to manage our costs and increase our income in expectation of the harsher financial climate that was confirmed yesterday. This has left us better prepared for the challenges ahead.
“The outcome of the Spending Review will not change the ambitions we have set out for the University. We will continue to strive to provide a world-class education to our students, and to undertake research that will benefit the UK’s economy and to improve our position as an internationally-competitive institution.”
Among the key elements of the Spending Review which affect the University are:
1) Research funding provided through the Science Budget (mainly then allocated to Research Councils) and via QR funding from HEFCE, will be maintained at a flat cash figure of £4.6 billion. When inflation is taken into account, this means a reduction of a little under 10 per cent over those 4 years. Decisions on how to split that funding between the different Research Councils and HEFCE will come later.
2) Teaching funding from HEFCE will be reduced by £2.9 billion per annum by 2014/15. This reflects the reductions suggested in the Browne Review, and we expect that all teaching funding (except supplementary funding for expensive or priority subjects) will be removed. For Southampton this means a reduction in income of over £30 million per annum.
3) Subject to Parliamentary consent, universities will be able to increase tuition fees to offset the loss of teaching funding, from the 2012/13 academic year. This again is the recommendation of the Browne Review.
4) There is no further information on whether the Government accepts some of the details of the Browne Review. A White Paper is promised “during the winter” and legislation “as soon as Parliamentary time allows”.
5) There will be a new National Scholarship fund to support students from disadvantaged backgrounds, reaching £150 million per annum by 2014/15.