University 'to lose two-thirds of its teaching budget' (From Durham Times)

University 'to lose two-thirds of its teaching budget'

11:24am Friday 12th November 2010 in News

LABOUR claims Durham University could lose almost two-thirds of its teaching budget over the next year.

The party commissioned research into the likely impact of Government plans to cut the teaching budget for universities and colleges from £7.1bn to £4.2bn by 2014.

It claimed Durham University would lose 63.3 per cent of its teaching budget.

Labour accused the Government of ending almost all state funding of higher education – transferring “the whole cost of degrees on to students, in the form of debt”.

John Denham, Labour’s business spokesman, said: “Universities will need to charge fees of at least £7,500 just to avoid losing money, so those that can’t will be forced to cut quality and dumb-down. Most students will be paying off debts for 30 years.”

The research comes after the Coalition Government proposed a near-trebling of annual student fees, from £3,290 per year to a maximum of £9,000, from 2012.

Universities minister David Willetts insisted vice-chancellors would only be allowed to charge above £6,000-a-year in “exceptional circumstances”, if they offered more places to poorer students.

A Department for Business spokesman said: “The information is incorrect.”

Prof Chris Higgins, vice-chancellor of Durham University, said: “It is clear that the comprehensive spending review will lead to a radical re-shaping of the funding of higher education generally and this presents a number of opportunities and threats for all universities, including Durham.”

Prof Higgins said higher education funding must enable the UK’s leading universities to continue to contribute to society and the economy.

He added: “However, a system of scholarships, loans and bursaries must also be put in place to ensure prospective and able students who are accepted by their university of choice are not prevented from going to university simply because they cannot afford it.

“Durham University has also always maintained that the Government needs to reduce the regulation of the higher education sector so universities have the flexibility to compete and excel. We hope that the eventual outcome of the changes proposed achieve this.

“I have already reassured our staff and students that Durham is as well prepared as it can be to manage any disruptive change to the overall funding regime.”