Universities UK response to Policy Exchange report on university funding

Responding to the report, Nicola Dandridge, Chief Executive of Universities UK, said: “Making such cuts to higher education would be a false economy. The UK has one of the best higher education systems in the world and our universities are critical to developing the highly-skilled workforce our economy needs.

“It should not be seen as an 'either-or' choice between further education and higher education. A number of further education colleges have successfully delivered degree-level courses for a number of years, often in partnership with universities. Universities are also actively involved in the delivery of new, industry-designed degree apprenticeships, with apprentices splitting their time between university study and the workplace.

“Universities have the facilities and the innovative links with employers that help give UK companies a genuine competitive edge and create high value jobs for employees.

“Skilled graduates are increasingly in demand. We know also from employers that they value the skills they find in our graduates. Latest figures show that 94% of graduates are in work or study three-and-a-half years after graduation, and over 80% of those employed are in professional, graduate jobs.

“It is misleading to suggest that universities are awash with cash reserves. The increase in the fee cap in England to £9,000 was largely a replacement for cuts in direct government funding. Fees, also, do not cover the cost of high-cost subjects such as science and engineering.

“Universities are required to maintain minimum surpluses. Without these, universities would be unable to deliver the scale of investment required to meet student demands, build capacity and ensure that the sector can remain internationally competitive. Universities also need capital investment to invest in world-class facilities and to leverage additional funding from external sources.”