University students in England now receive just two-thirds of the funding they would have had a decade ago, after inflation and government cuts reduced teaching resources, according to vice-chancellors. Analysis by Universities UK (UUK) found that today's undergraduates get £6.4bn less spent in real terms than those studying the same degrees in 2015-16.
University leaders warned that the situation could worsen if the government proceeds with a new levy on international student fees in Wednesday's budget. While the inflation-linked rise in domestic tuition fees is expected to increase funding by £440m annually, the new tax on international fees is projected to remove £780m in yearly revenue.
Vivienne Stern, UUK's chief executive, said: 'The decision to increase fees in England in line with inflation was brave, and the right thing to do. It is beyond disappointing that the government plans to remove more than the amount this will bring in through a new tax on international students.'
The funding shortfall explains why many universities face budget deficits, as domestic tuition fee income has fallen behind rising costs, making them reliant on international student fees. UUK's survey found 49% of institutions closed courses and 18% closed departments entirely, with 80% considering cuts in research spending.
A Department for Education spokesperson said: 'We have taken action to put the sector on a secure financial footing, including committing to raise the maximum cap on tuition fees annually and refocusing the Office for Students to support universities to face the challenges of the future.'
