University spending rising faster than income

By John Morgan. Spending by English universities rose faster than their income did in the year before £9,000 tuition fees were introduced, while institutions again increased their reliance on fees paid by overseas students.
Although the rises in spending at England’s universities are below or in line with inflation, they are under intense pressure from the government to reduce their costs. The issue could be a factor in current talks over the 2015-16 spending review, in which the Treasury is thought to be seeking a cut of around £1 billion from the Department for Business Innovation and Skills budget. Expenditure by English universities rose by 2 per cent to £22.2 billion in 2011-12, outstripping the 1.5 per cent rise in their income to £23.3 billion, according to figures on finances published yesterday by the Higher Education Statistics Agency. Read more...