Give with one hand, take with the other

£700 million extra investment criticised as too little whilst student grant funding cut

The government has announced a modest increase in Higher Education funding while cutting back on student support and university expansion, in a budget one critic has called an "absolute tragedy."

John Denham, Secretary of State for Innovation, Universities and Skills, has pledged to raise funding for teaching and research at universities to £7.8bn next year, up from £7.1bn this year.

Mr Denham said the new funding aimed to allow universities to "offer practical help to individuals and business through these tougher economic times" and marked a rise in funding of 30% since Labour took power in 1997.

This year's rise, however, barely accounts for inflation, and some universities have suggested the money will be spread too thinly to make a difference. It has been allocated partly according to the government's recent Research Assessment Exercise (RAE), which found that most UK universities were equally deserving of research funding.

Moreover, the funding increase is accompanied by a curtailment of student support and a freeze on university expansion. The budget for student grants has been cut by £19m, and universities will no longer be free to admit more students than the government wishes.

Any institution which expands too rapidly will be fined and will need to support the new students without government finance.

The new restrictions are a result of the government underestimating the student population, which rose by 7% last year. If the limits remain in place, they will prevent universities from hitting the government's target of 50% of young people entering Higher Education.

Pam Tatlow, of the think-tank Million, said the government's decision was "extremely disappointing" and an "absolute tragedy" for teenagers looking to improve their job prospects during the recession.

Diana Warwick, chief executive of Universities UK, which represents vice-chancellors, said the "UK's knowledge-based economy needs more, not fewer, graduates" and suggested universities had not been properly consulted on the issue.

Charlotte Richer, CUSU Access officer, told TCS the new budget was unlikely to significantly impact Cambridge students because the university expands only slowly and its student support schemes depend on private benefactors more than government funding.

Andy Jones News Reporter