Universities in England will lose £940 million in funding in the next financial year with severe cuts to capital budgets and teaching.
University leaders have learned the full extent of the austerity ahead for the higher education sector as the Higher Education Funding Council for England (Hefce) announced cuts to budgets from April 2011.
In the next financial year, £4339 million will be allocated to universities for teaching representing a further reduction of £180 million (4 per cent). The research budget will also be cut by £17.4 million (1.1 per cent) in the coming financial year and this reduced funding will be allocated more selectively. In practice, this means that research rated 2* – internationally recognised in terms of originality, significance and rigour – will not receive ‘quality related’ funding from Hefce.