Universities urged for more protection of education by investment

Representatives from the UK's universities have written to the Treasury urging them to protect public investment in higher education or risk losing out on the best students and researchers to other countries.

The letter from Universities UK to the chancellor Alistair Darling and Treasury secretary Yvette Cooper highlighted higher education institutions are major contributors to the UK economy, employing more than one per cent of the UK's total workforce and educating graduates who go on to work in multiple sectors.

But Universities UK chief executive Diana Warwick said the government's decision to limit the numbers of places available for students in the UK and continued under-investment meant the UK would not be able to compete internationally, limiting the speed of the country's economic recovery.

Ms Warwick pointed out UK universities generated £45 billion for the UK economy each year, but a lack of funding programmes like those in the US would leave the sector lagging behind.

She said: "The United States has set the pace with a multi-billion dollar investment in higher education as part of a broader fiscal stimulus package. Not only is this the right action in itself, but it presents an irresistible challenge to the UK.

"As our major competitor, we now face the very real danger of losing our research stars to our better-funded counterparts in the United States, causing lasting damage to the UK."

She went on to add the limit on the number of students entering some universities was most likely to impact on student from poorer backgrounds.

She added: "Without a rethink thousands of students will fail to get places this year. Many institutions will not enter clearing, and the impact on students from lower socio-economic groups will be most pronounced.

"Indeed the threat of fines which may go into several millions for institutions who accidentally over-recruit, means that most institutions will aim low, possibly even under-recruiting, in order to avoid crippling financial penalties."

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