Univerisities UK response to HE cuts

The UUK response is here and this morning we were circulated the information note I-2009-127 which provides more detail:

Key points

• Aggregate public spending on institutions will decrease by 6.6% in 2010/11, from 2009/10. This top-line figure includes a decrease of 1.0% in recurrent funding for teaching, and an increase of 7.2% in recurrent funding for research.
  
• The unit of resource for teaching will be reduced in real terms by 4.6% from £4,140 to £3,950, due to £164 million ‘efficiency savings’ announced in April 2009 Budget and £51 million reduction due to additional costs of student support at a time of economic downturn.
  
• Capital funding decreased by 56.9% mainly due to £200 million of funding being brought forward from 2010/11 to 2009/10 during last year’s settlement. When adjusted for this movement Capital funding shows a 18.2% reduction from 2009/10
  
• Over recruitment has taken place within the sector and as a result the grant for teaching has been adjusted downwards to reflect this. HEFCE has been asked to make appropriate adjustments to the allocations of those institutions who were found to have over recruited in 2009/10, at a rate of £3,700 (the average cost to government of providing student support) per full time undergraduate and PGCE student recruited above the permitted level. Universities UK protested about this decision when it was first announced in January 2009 and pointed out that this was too late in the application cycle for many institutions to curb recruitment.
  
• The letter announces just under £400 million of cuts from the 2009/10 allocation to HEFCE comprising £180milion cuts previously announced in the 2009 Budget in April, £83 million following the October 2008 letter from the Secretary of state to HEFCE and a further £135 million (£51 million from the teaching grant and £84 million from capital spending) to meet additional pressures related to higher than expected costs for student support in the current downturn. It is not yet clear how this relates to the £600 million cuts announced in Pre-Budget Report 2009 for the period to 2013.
  
• For 2010/11 18,000 additional funded places will be provided, made up of 10,000 FTEs through core funded places and 8,000 FTEs through employer co-funded places. There will be no repeat of the 2009/10 10,000 additional unfunded places in 2010/11. Over recruitment in 2010/11 will again result in a reduction in the HEFCE grant as has occurred this year.