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Universities (Funding)

Volume 122: debated on Tuesday 10 November 1987

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To ask the Secretary of State for Education and Science if, in the light of the increased university funding forecast in the Chancellor's Autumn Statement, he will indicate what increase in funding will be proposed by the University Grants Committee for the University of East Anglia for 1988–89 and 1989–90; and what have been the reductions in funding received by this university in the last three years.

Provisional allocations of basic recurrent grant to universities for the academic years 1988–89 and 1989–90 were announced on 19 February 1987. The University Grants Committee will be considering over the next few months the development of a targeted restructuring programme to meet the Government's objectives as set out by my right hon. Friend on 3 November, at columns 798–99 and the adjustments to be made to the recurrent grant allocations of individual universities. Recurrent grant allocated to the University of East Anglia over the last three years is as follows:

£ million

1984–8515·0
1985–8614·7
1986–8715·0

To ask the Secretary of State for Education and Science, further to his reply to the hon. Member for Norwich, South on 3 November at columns 798–99, what will be the real percentage increase in university funding in 1988–89 and 1989–90; and what have been the reductions in this funding since 1981.

Provision is being made to increase recurrent grant paid to universities on the advice of the University Grants Committee by 8 per cent. in cash terms or 3·5 per cent. in real terms taking account of the GDP deflator between the financial years 1987–88 and 1988–89, and to remain about level in real terms for 1989–90. Recurrent grant to the universities increased by 5 per cent. in real terms between 1980–81 and 1987–88. Such grant amounts to just over half universities' total recurrent income which, from the latest figures available, increased by 7·7 per cent. in real terms between the academic years 1980–81 ad 1985–86.

To ask the Secretary of State for Education and Science, further to his reply to the hon. Member for Norwich, South on 3 November at columns 798–99, what procedures he has in mind to establish whether or not universities are run properly.

My right hon. Friend agreed an appropriate programme of action with the University Grants Committee and the Committee of Vice-Chancellors and Principals in November 1986. This makes provision for regular reports on post-Jarratt efficiency gains, and other steps to encourage better management, including improved accounting procedures. In addition, the UGC now has each university's financial forecasts and academic plans, which enable the committee to take a view on institutions' financial prospects and the realism of their plans.