Impact of the Budget on higher education

Savings needed? No need to think about it, just cut the administration

John Denham has written to HEFCE on the impact of the Budget.

This is a significant letter from the Secretary of State but it doesn’t quite say what the Guardian is reporting. The paper’s headline states: “Universities told to cut admin costs, not teaching or research”. This isn’t precisely the message but the sentiments are there:

Ministers have calmed fears that universities will be asked to axe thousands of academic jobs and make savings on teaching and research.

Letters from the universities secretary, John Denham, to the Higher Education Funding Council for England (Hefce) and the Learning and Skills Council (LSC) confirm that savings should be made in administration costs, rather than the core university business of teaching and research.

“I am confident that we can find efficiency savings whilst protecting the quality of teaching and research,” he wrote.

Savings should come from programmes that “do not directly contribute to the frontline delivery of teaching and research”, he added.

The important point here is that, having determined that universities have to make significant savings it really isn’t the job of the Secretary of State to tell institutions how to prioritise their spending. Of course institutions will not seek to undermine quality of teaching and research. But the idea that there is this huge unnecessary raft of administration from which savings can easily be made, that this will have no effect on quality and also that that somehow administrators are dispensable is simplistic and thoroughly misguided.

So, universities will find their own ways to make the savings required and will, it is to be hoped, aim to do so in a measured and sensible way. But this kind of advice is not hugely helpful.