Government cuts
The table shows the cumulative effect of confirmed cuts which are efficiency savings in the 2009 budget, the HEFCE Grant Letter and Pre Budget Report, together with Institute of Fiscal Studies (IFS) projected cuts.
The Institute of Fiscal Studies has warned that additional cuts of 12.3% over the two years 2011/12 are needed to achieve the government’s target of halving the national debt by 2013. This would mean another £1.6bn of cuts for the science and higher education budgets over that period, bringing the grand total to £2.5bn – equivalent to a third of the current annual spend on higher education.
* Of which £19 million relates to the consolidated reduction of 5,000 in ASNs in 2009 - 10 and £64 million relates to the further reductions for 2010 - 11.
Both the main parties have outlined the need for significant additional cuts in public expenditure. Neither of the parties has identified the higher education budget as “protected”. If a Conservative administration is in place after the general election, they have promised to deliver an emergency budget within 50 days, which could give further significant in-year cuts.
Chancellor Alistair Darling has admitted to the Financial Times (Monday January 18) that cuts are required by all departments including universities are 16% in order to halve the deficit of £1.7 B within four years.