UK: Deep cuts loom for higher education

Academics are up in arms over last Tuesday's emergency budget announced by George Osborne, the coalition government's Chancellor of the Exchequer. Public sector cuts averaging 25% will hit all departmental budgets including universities and while the devil will be in the detail, to be revealed in the comprehensive spending review on 20 October, academics are in for a nervous summer speculating where the axe will fall.

Although the National Health Service, overseas aid, schools and military spending are protected, Professor Steve Smith, President of Universities UK, the vice-chancellors' body, urged the government not to deal a "double blow" to universities' capacity to contribute to economic recovery.

The increase in value added tax to 20% from 17.5%, effective from 4 January 2011, will result in an extra tax burden for universities which could cost more than £200 million US$300 million) a year, Smith said.

"Universities UK recognises the need to rein in public spending in order to tackle the deficit, but recovery from the economic crisis depends both on fiscal responsibility and growth. The chancellor acknowledged this in his speech. Universities are uniquely placed among public services to contribute to the future strength of the UK's economy.

"Our concern is that universities will suffer a 'double-whammy' of tax increases and spending cuts. A VAT increase means an increase in the cost-base of universities. It also risks derailing the efforts of university leaders to drive cost-saving collaboration projects."

Smith said that if the increased tax costs were combined with future funding cuts, this would represent a significant squeeze on the universities' capacity to deliver the numbers of graduates and the quality of research the UK economy needed.

Professor Les Ebdon, Chair of million+, a think-tank representing the newer universities, and Vice-chancellor of the University of Bedfordshire, said the price of the cuts would be social mobility which was a key feature of the government's agreement for higher education.

"We face the alarming prospect that the only way this equation will add up is if the numbers of people going to university are cut. This would clearly undermine the coalition agreement's commitment to social mobility," said Ebdon.

"The budget was always going to be tough but the real test was ensuring that it was fair. There is no disguising that cuts of this magnitude will deny opportunity to many at the bottom of the social ladder."

Dr Wendy Piatt, Director General of the Russell Group of research-intensive universities, said: "We sincerely hope this government recognises the vital role that leading research-intensive universities play in boosting the economy and improving quality of life and does not subject higher education to cuts of the truly alarming magnitude of 25%."

diane.spencer@uw-news.com