UK: Massive cuts raise spectre of student outflux

The coalition government is cutting the higher education budget by 40%. But science, technology, engineering and maths - the Stem subjects - will be protected, as will the budget for scientific research.

The budget will be reduced from £7.1 billion to £4.2 billion (US$11.2 billion to US$6.6 billion) by 2014-15.

Universities UK president Steve Smith (above) said the cuts would mean the biggest change in the sector for more than 40 years and state funding would be withdrawn for teaching in many subjects. The arts and humanities appear to be the most vulnerable and there would be serious repercussions for British universities in the overseas market.

The scale of the cuts and the possibility of tuition fees being driven up to compensate if proposals to lift or raise the fee cap for UK students are given the green light, have left some European university leaders rubbing their hands with glee at the heightened prospect of enticing UK students abroad.

Dr Jo Rizen, rector of Maastricht University, said: "The outflux of UK students has already started and I expect this to increase significantly over the coming years. As a result Maastricht hopes to attract a large number of UK students."

George Osborne, the chancellor, praised universities as "jewels in our economic crown" before announcing the £2.9 billion cut in teaching budgets.

Dr Wendy Piatt, director general of the Russell Group of elite universities including London and Oxbridge, said the cuts would make it tough to maintain the high quality of teaching, learning and research her members currently offered.

She said: "It should not be forgotten that our competitor countries are injecting enormous investment into their universities to kick-start growth. Even with this late reprieve [for the research budget], it will remain extremely challenging for leading UK universities to maintain their world-class status and to keep pace with our competitors.

"Indeed, as the UK's economic competitiveness becomes increasingly dependent upon high-tech industries and skilled graduates, research-intensive universities will become even more important in tackling complex problems and driving future growth and prosperity."

Sally Hunt, general secretary of the University and College Union, said: "It's no good the chancellor describing universities as the jewel in our economic crown and then following those warm words up with massive cuts. Every MP with a college or university in or near their constituency should be clear that the cuts will put those institutions at risk."

The University and College Union and the National Union of Students have organised a national demonstration against the cuts in central London on Wednesday 10 November.

Scientists were relieved that the cuts to their research budgets were not as deep as they feared. The £4.6 billion spent by the Department for Business, Innovation and Skills will be ring-fenced in an agreement that corresponds to a 10% cut after inflation. Universities will be expected to make up the shortfall through efficiency savings.

Professor Simon Gaskell, principal of Queen Mary College, London University, said the settlement was better news than was feared and "suggests the arguments for the fundamental economic importance of scientific research have been heard and at least partly understood".

Business secretary, the Liberal Democrat Vince Cable, who is also responsible for universities, and science secretary, Conservative David Willetts argued the case for science and innovation being critical to Britain's economic recovery. So the settlement is seen as a victory for them.

Pam Tatlow, of the university think tank, million+, whose members include the former polytechnics which could be among the most vulnerable institutions, said the government had effectively brought in higher fees by the back door. She also queried government claims that higher education would be placed on a sustainable footing, based on such a sharp reduction in funding, and Treasury expectations that higher graduate contributions would offset reductions in public investment from 2012-13.

Last week, a government review of higher education funding, led by Lord Browne, recommended removing the cap on tuition fees for UK students and cutting the universities teaching grant from £3.5 billion to £0.7 billion. A progressive levy on fees would fund government loans to students. Cable said he was considering allowing UK students' fees to rise to £7,000. But Willetts acknowledged there were concerns about driving up university fees and the two ministers have yet to agree on what proposals to put before Parliament later this year.

The possible closure of courses and rising fees could have a knock-on effect of driving UK students abroad.

Dr Jo Ritzen, President of Maastricht University, Holland said there are bound to be more and more UK students seeking opportunities to study at universities in other European countries as they face tougher competition for places at home, where almost a third of university applicants have been rejected this year.

He said: "The current pressure on UK higher education through budget cuts and higher tuition fees is leading to increased awareness among parents and students of the excellent alternatives at European universities."

Maastricht University, recently ranked among the top 1 per cent of the world's universities, has already seen a sharp rise in applications from UK students this year and still has undergraduate and postgraduate places available for courses starting in the New Year. Many have been attracted by the availability of places, the fact that Maastricht charges students just £1,500 to £2,000 a year for courses that are taught in English, and by the opportunity to study abroad and gain the kind of experience that employers value.

Dr Ritzen said: "I predict that in the coming years, studying abroad will be a far more common choice for UK students, especially if tuition fees in Britain rise as high as £12,000 a year in some universities as has been forecast."

Maastrich cites the example of Jed Foward, a Maastricht student from Bradford, who was rejected from four out of five of the British universities he applied for. In the end he had to choose between a Politics and Economics degree at a UK university for £4,000 a year or a Liberal Arts and Sciences degree for less than £1,500 a year from Maastricht.

There was a crumb of comfort for the UK's higher education sector this week with the announcement from the Europe Investment Bank, which is to provide a long-term loan of £150 million for science parks and incubation centres for start-up companies as part of a £500 million UK Knowledge Economy finance package to three UK banks.

Welcoming the announcement, Cable said: "It is good to see the EIB continue to recognise the leading role that British universities, scientists and businesses play in innovation and technology development in Europe, and the world class companies that emerge from our research base."

diane.spencer@uw-news.com