Presentation on theme: "AUT 2005 - HE income1 Higher education income Stephen Court AUT senior research officer AUT LA Presidents’ briefing 7 July 2005."— Presentation transcript:
AUT 2005 - HE income1 Higher education income Stephen Court AUT senior research officer AUT LA Presidents’ briefing 7 July 2005
AUT 2005 - HE income2 UK HEI income 2003-4 (1) FC grant: teaching26% FC grant: research8% FC grant: recurrent special3% FC grant: capital1% FC grant: total39% Tuition fees & ed grants24%
AUT 2005 - HE income3 UK HEI income 2003-4 (2) Research: research councils5% Research: charities4% Research: govt & EU3% Research: business & industry1.5% Total research grants & contracts16% Other inc: services - UK govt2%
AUT 2005 - HE income4 UK HEI income 2003-4 (3) Other inc: services: business & indus1% Other inc: residences & catering6% Other inc: health & hospitals2% Other inc: other operating5.5% Total other inc20% Total endowment & investment1.5%
AUT 2005 - HE income5 UK HEI income 2003-4 (4) FC grant: total39% Tuition fees & ed grants24% Total research grants & contracts16% Total other inc20% Total endowment & investment1.5%
AUT 2005 - HE income6 Public sources of income as proportion of total UK HEI income 2003- 4 Grand total HEI income Public: Funding Council grants * Public: tuition fees & contracts ** Public: research grants & contracts *** Public: other services # Public: other ~ Public: total Public as % Grand total £m £% UK16,8676,4282,0051,57645034110,80164.0% Source: HESA HE Finance Plus 2003/4; % calculations by AUT * Excludes FE provision ** Full-time Home & EU HE fees standard & non-standard; excludes part-time, non-EU overseas & non-credit-bearing *** OST Research Councils; UK central & local govt etc; EU sources # KT Partnerships; UK cent & loc govt; EU ~ local govt; health; deferred capital grants
AUT 2005 - HE income7 UK HEI expenditure 2003-4 Staff costs: academic33% Staff costs: other26% Other operating expenses (academic, research, facilities, services, residences, fellowships, heat etc, books, fellowships) 36% Depreciation5% Interest1%
AUT 2005 - HE income8 Level of surplus The operating surplus for UK HEIs remained at a very similar level in 2002-3 and 2003-4, at around 1.5% of income. The historical cost surplus for UK HEIs in 2003-4 increased from 2.5% to 3.2% of income.
AUT 2005 - HE income9 Total incomeOperating surplus Operating surplus as % of income 2002/032003/042002/032003/042002/032003/04 £m % Total UK15,69116,8672182411.4% Source: HESA HE Finance Plus 2003/04; percentage calculations by AUT
AUT 2005 - HE income10 Historical cost surplus Historical cost surplus as % of income 2002/032003/042002/032003/04 £m % Total UK4065282.6%3.1% Source: HESA HE Finance Plus 2003/04; percentage calculations by AUT
AUT 2005 - HE income11 HEIs in deficit In 2004, out of 170 HEIs, the proportion with an operating deficit in the UK was 24%. The largest deficit was nearly £9m at Cambridge, followed by Aberdeen (£6.7m), Leeds Metropolitan (£4.9m) and Glasgow (£4.4m).
AUT 2005 - HE income12 HEFCE grant Grant allocations by the Higher Education Funding Council for England, plus fee income, for English HEIs increasing by 5.8% in 2005-6
AUT 2005 - HE income13 DfES grant to HEFCE & TTA England standard fees (est. after 2005-6) England top-up fees (est.) England grant & fees total (est. after 2005-6) £m change %£m change %£m change % 2004-055,422 860 6,282 2005-065,7986.9%9429.5% 6,7407.3% 2006-076,1165.5%1,0329.5%435 7,583 13.2% 2007-086,4285.1%1,1309.5%8928,45011.7% Source: DfES annual funding guidance letters to HEFCE; HEPI estimates; AUT estimates; HEFCE 2005/16; percentage calculations by AUT
AUT 2005 - HE income14 English HEI forecasts The forecasts of HEIs* in England for increase in grant and fee levels are considerably lower. * (made in June/July 2004 before the outcome of the 2004 Spending Review, and not including the impact of variable fees from 2006) HEIs are forecasting a 5.6% increase in staff costs in 2005-6, followed by 4.7% in 2006-7 and 4.4% in 2007-8.
AUT 2005 - HE income15 England HEI forecast: total income from FC grants & fees England HEI forecast: total income England HEI forecast expenditure on staff costs £mchange %£mchange %£mchange % 2004-059,29514,4108,456 2005-069,7034.4%15,0834.7%8,9265.6% 2006-0710,0043.1%15,6984.1%9,3434.7% 2007-0810,4104.1%16,3163.9%9,7574.4% HEFCE 2005/16; percentage calculations by AUT
AUT 2005 - HE income16 Top-up fees in England England HEI forecast expenditure on staff costs Top-up income (minus bursaries)Staff exp + top-ups £mchange %£m change % 2004-058,456 2005-068,9265.6% 2006-079,3434.7%0.2689,6117.7% 2007-089,7574.4%0.610,3577.8%
AUT 2005 - HE income17 e.g. Exeter Staff costs 2005-6 Staff costs 2006-7 at 4.7% inc Extra from top-ups 2006-7 Staff costs + 66% top- up income 2006-7 Staff costs + 66% top-up inc 2006-7 £000 Change % 80,38784,1654,68087,2548.5%
AUT 2005 - HE income18 Funding for Wales Planned funding for HEFCW is to increase by 5.8% in 2005-6 - considerably above forecast RPI inflation. Much lower levels of increase after 2006 – but these exclude any Supplementary Income Stream or top-up income for 2007-8
AUT 2005 - HE income19 HEFCW income £m% 2004-05361.9 2005-06382.85.8% 2006-07395.53.3% 2007-08404.72.3% Source: NAW Draft Budget Proposals Oct 04; percentage calculations by AUT
AUT 2005 - HE income20 HEFCW grant The 2005-6 HEFCW recurrent allocations to Welsh HEIs are increasing overall by 4.95%. (HEFCW W05/12HE) The five main pre-92 HEIs are to receive an increase in HEFCW grant of between 3.3% and 7.8% - the latter being the increase for Lampeter.
AUT 2005 - HE income21 HEFCW grant 2004-52005-6 Change £m£% Aberystwyth28.729.73.3 Bangor188.8.131.52 Cardiff95.3100.85.8 Lampeter184.108.40.206 Swansea32.734.96.5 Wales Total309.6324.94.95 Source: HEFCW circular W05/12HE, Table 5
AUT 2005 - HE income22 Funding for Scotland Funding for SHEFC for the period of the 2004 Spending Review is generous, rising by 8.3% in 2005-6. Total grant and fees for Scotland rising by 7.2% in 2005-6, then 10.6% in 2006-7 and 6.5% in 2007-8.
AUT 2005 - HE income23 Financial yearSHEFC grantTotal feesSHEFC grant plus total fees £m % change 2004-5787172959 2005-685317610297.2% 2006-7958180113810.6% 2007-8102818412126.5% Source: Spending plans in Building a Better Scotland; Fees: AUT estimate
AUT 2005 - HE income24 SHEFC grant The grant allocations to Scottish HEIs by SHEFC (SHEFC HE/08/05), show a lower rate of increase for 2005-6, of 3.4%. There are various reasons for this: the recurrent grants to institutions do not include all the funding SHEFC will allocate; the funding for SHEFC is in financial years, while the funding by SHEFC is in academic financial years. AUT(S) says there are various elements of funding made during the year which bring the level of funding increase to HEIs to ~6.5%.