Responding to the publication of the annual grant letter to the Higher Education Funding Council for England (HEFCE), Diana Warwick, Chief Executive of Universities UK, said: “This year’s increase in funding for the higher education sector of almost 3.2% for teaching and 4.5% for research is good news, although we note that the overall figure takes into account the bringing forward some £220m in capital spending from 2010-2011 into 2009-2010.

“While the percentage increase for the upcoming year is welcome we are concerned that this year’s funding letter does not look beyond 2009-2010. What the sector needs is stable, sustainable funding to assist higher education institutions in their forward planning.

“We fully support the Secretary of State’s long term strategic goals and the priorities he has outlined for the coming year. We are pleased with the recognition of the key role that universities have in achieving the UK’s economic recovery; we are doing our part in this area and stand ready to do more in this time of recession. Universities are businesses in their own right and are themselves facing the effects of the economic downturn. Now, in particular, investment in research, development and higher-level education is crucial if universities are to play their part in building prosperity in the future.

"We recognise and understand the importance the Secretary of State is placing on achieving and demonstrating value for public money, particularly in the current economic climate, and the sector is committed to continuing to deliver this.

“Universities are likewise central to the Government’s aims for social mobility – as the recent White Paper showed. We support fully these aims and have much to offer in both the short and long term to support this agenda.

“Universities UK agrees strongly with supporting research excellence wherever it is found, as evidenced by the outcomes of the 2008 research assessment exercise. We welcome the Secretary of State’s declared unequivocal commitment to the dual support system, as this is key to the UK’s international competitiveness.

Diana Warwick added: “We note and support the emphasis placed in the Secretary of State’s letter on STEM subjects and the direction of QR funding. However, it is also important that other disciplines, notably those that underpin the creative industries, are also well funded if we are to continue our world-leading expertise and productivity in these areas.

“Universities UK further supports the Secretary of State’s ambitions for tackling climate change. This is a major priority for the higher education sector, both in the research activities which are contributing to potential solutions to these global challenges, and also as employers and educators of the future workforce.

“We note with concern the decision regarding ASNs for both 2009/2010 and 2010/2011, and we will look for more detail later in the year. Recent UCAS figures show that demand for the excellent higher education provided in the UK is buoyant. There is a danger in placing limits on growth – UUK believes strongly that the UK’s knowledge-based economy needs more, not fewer, graduates – and we urge the Government to discuss the impact of this and future decisions with the sector.”

Notes

1. Universities UK published recently 'Standing together: universities helping business through the downturn', which sets out the kind of support universities and colleges can offer employers, both in the current economic climate and longer term. For further information, visit: http://www.universitiesuk.ac.uk/Newsroom/Media-Releases/Pages/BusinessPamphlet.aspx

2. Universities UK also contributed a submission to the DIUS ‘Higher Education Debate’, alongside Universities UK’s invited submission on demographics which examines the likely impact of projected population changes on demand for higher education over the next 20 years. For further information, visit: http://www.universitiesuk.ac.uk/Newsroom/Media-Releases/Pages/UniversitiesUKcontributestoDIUSHEdebate.aspx

3. For information on the annual grant letter to the Higher Education Funding Council for England (HEFCE), visit: http://nds.coi.gov.uk/environment/fullDetail.asp?ReleaseID=390443&NewsAreaID=2&NavigatedFromDepartment=False

4. Universities UK is the major representative body and membership organisation for the higher education sector. It represents the UK's universities and some higher education colleges. Its 133 members http://www.UniversitiesUK.ac.uk/members/ are the executive heads of these institutions. Universities UK works closely with policy makers and key education stakeholders to advance the interests of universities and to spread good practice throughout the higher education sector. Founded in 1918 and formerly known as the Committee for Vice-Chancellors and Principals (CVCP), Universities UK is celebrating its 90th anniversary in 2008.