University budgets cut by another £135m
Updated on 23 December 2009
Severe cuts to university teaching budgets announced by Business Secretary Lord Mandelson could force some departments to close.
Universities had already been ordered to save £180m in the next 18 months but Lord Mandelson's announcement means they must make further cuts of £135m.
And those universities that took on more students than the government wanted to allow last year, will be fined £3,700 per extra full-time student when they receive next year's grants in March.
Lord Mandelson cut teaching grants by a total of £51m but aimed to limit the impact on students by cutting the remaining £84m from capital budgets.
He has also suggested that universities could restructure qualifications, possibly creating shorter courses that concentrate on work-based skills.
The recession is likely to increase the number of applicants for university places but the government has removed the extra 10,000 unfunded places on science, technology, engineering and maths courses that it allowed this year.
Professor Steve Smith, president of vice-chancellors' group Universities UK, said: "The higher education sector recognises the current pressures on public spending and is playing a key role in tackling many of the long-term challenges facing the economy.
"The sector will not be able to deliver more with less without compromising our longer-term sustainability and international competitiveness. The Government must avoid sacrificing the long-term interest in favour of short term aims."
"We will see teachers on the dole, students in larger classes and a higher education sector unable to contribute as much to the economy or society. How all that marries up with a government that is pioneering a university sector more reliant on student feedback is beyond me."
