asked the Secretary of State for Education and Science whether he is satisfied that the prevailing arrangements for the finance of higher education are properly calculated to enable universities to adjust their forward planning without wastage.
Universities cannot be exempt from the reductions that have to be made in public spending, including education. It will be necessary for them to make adjustments, including some rationalisation of work within and between establishments, and preliminary discussions between universities and the UGC are now in progress. The grants announcement that my right hon. and learned Friend made on 27 March will, I believe, give universities a more secure planning perspective in respect of home students and financial provision for them. I see no reason why there should be unnecessary wastage of resources in making adjustments over the next few years.