Universities will see funding slashed next year

Three quarters of English universities face real-term budget cuts this year.

Three quarters of English universities will see their funding cut next year. According to figures announced by the Higher Education Funding Council for England (Hefce), more than half of England's 130 universities have received cuts in cash terms for 2010/11.

But inflation of around 2 per cent means that 99 institutions are facing a real terms cut, two will see their funding frozen, while just 29 will see an increase.

Last month Hefce announced that overall funding for the sector would fall to £7.3bn -- £449m less than last year. The biggest savings would be made in teaching budgets, which would fall by 1.6 per cent in real terms.

The cuts mean that there are around 6,000 fewer places available this year despite a record number of applicants.

Hefce chief executive Sir Alan Langlands said universities facing large cuts will be given so-called "moderation funding" to help them adjust to the lower budgets.

He said: "I think these are very modest reductions and it is quite likely that universities will be able to cope with this without in any way undermining the student experience."

Among the biggest losers were the London Business School which will see a reduction in funding in cash terms of nearly 12% and Reading university which faces a 7.7% cut in cash terms.