British Universities face bankruptcy risks
Friday, 04 March 2011
British universities are facing a very dull future as the British government target them in its austerity program. Fresh report on Friday say that British universities, especially those in England could be put at risk of bankruptcy as a result of cuts and changes to funding, according to the British Audit Office.
The organisation acknowledges that some universities will benefit from the changes but some will have less money and its requires that the public should be told more about universities at risk.
Despite the strong growth in incomes the UK universities have enjoyed in the past years, the new funding framework, coupled with the squeeze in public funding, is likely to increase the level of risk within the sector.
The organisation also note that just the transition alone and the new environment itself will increase the risk within the sector, potentially raising the number of institutions at high risk of failing.
On the whole, the new reforms for English universities will see teaching grants to universities being cut and universities expected to fund their courses from higher tuition fees, which are being raised in 2012 from just over �3,000 a year to a maximum of �9,000 a year.
Despite the government saying that it will protect funding for science-based courses and research, the audit office notes that about one in 10 institutions had suffered from financial hardship in at least two of the past three years. It also point that a quarter of England's universities fell below at least one benchmark designed to check an institution's finances in the years 2009 to 10.
The British university lecturers' union, the University and College Union (UCU), said the report showed the consequences of higher fees and reduced public funds. Other authorities say that this it is still early days and chaotic to be able to determined properly how universities will perform in the future.
It is only after 2012, that a proper picture will emerge to show how the future might look like.
By Scancomark.se Team