22 June 2010
million+ questions Government commitment to social mobility with 25% cuts forecast
Leading university think tank million+ has criticised today’s Budget which leaves the department responsibility for universities and students facing further cuts of at least 25%. Universities have already been cut by over £1billion and had support for capital funding projects withdrawn. They now face an increase in VAT which will cost many institutions at least £1million per year.
Professor Les Ebdon, Chair of million+ and Vice Chancellor of the University of Bedfordshire has said that the price of these cuts will be the social mobility which is a key feature of the Coalition Government’s agreement for higher education. Professor Ebdon said:
“Coalition Ministers need to explain precisely how they expect universities and students to absorb these cuts without risking the social mobility which they say they support and a hike in student fees which the Liberal Democrats said they opposed at the election. 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. 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.”
“The Chancellor has also ignored the potential of universities to contribute to the economic growth and innovation which he says he supports. The economic impact of a university is two and half times its budget and universities contribute over £5 billion in foreign exchange earnings each year. The Coalition Government’s approach stands in sharp contrast to the approach adopted in Sweden where the government created 100,000 new places for young people to go to university at the same time as pursuing measures to cut the country’s deficit.”
Ends
Notes to Editors:
1. Departmental expenditure limits were to be cut by Labour by £44 billion by 2014/15. The Government will add a further £17 billion by 2014/15. Spending on the NHS and international development has been protected with other departments facing an average cut of 25% by 2014/15. The Chancellor indicated that it may be more for some departments, such as Business, Innovation and Skills, due to the costs of social security and welfare and special priority of education and defence.
2. A university with an annual turnover of £160 million will now pay at least £1 million more in VAT as a result of the increase in VAT. They will also have to pay additional VAT on any capital projects which they are seeking to finance.
3. million+ is a leading university think-tank, working to solve the complex problems in higher education www.millionplus.ac.uk.
4. For more information, comment or interviews from million+ please contact Victoria Mills on: 020 7717 1659 or 07900 277819.