MORE than half of the universities and colleges in England and Northern
Ireland will be running at a loss by the end of the decade, according to a
report from the Higher Education Funding Council for England (HEFCE) and the
Department of Education for Northern Ireland. The report warns that the 鈥渞apidly
deteriorating position鈥� is likely to result in major staff cuts and a freeze on
new equipment and building works.
At the end of the 1994/95 academic year, fewer than 20 per cent of
universities showed a deficit. But last year鈥檚 tough budget cuts mean that
almost all of the universities will suffer badly. 鈥淭here is clearly a trend of
decline,鈥� says a spokesman at HEFCE.
Science departments can expect to be among the worst hit. Expensive subjects
that need large investments in equipment may be disproportionately affected,
says Tony Bruce, head of policy development for the Committee of
Vice-Chancellors and Principals. 鈥淲hat the forecast shows is that the ability to
invest is being eroded quite rapidly,鈥� says Bruce.
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A survey earlier this year by PREST, the University of Manchester鈥檚 science
policy research group, showed that research equipment in British universities
was so old and decrepit that 拢400 million was urgently needed just to
maintain current standards (This Week, 8 June, p 12).
Universities and other institutions will have to act quickly to reduce their
expenditure, says Ian Lewis, head of finance at the HEFCE. Because staff make up
about two-thirds of their spending, universities are contemplating big cuts in
both salaries and numbers. At least 1200 teaching jobs will go before the end of
the decade, according to the HEFCE. David Triesman, general secretary of the
Association of University Teachers, calls the prospect 鈥渁n unmitigated
诲颈蝉补蝉迟别谤鈥�.