Analysis from London Higher shows that government cuts in funding for higher education will cost the capital up to £20 million annually, undermining growth ambitions for priority sectors in both the London Growth Plan and Industrial Strategy.
The Strategic Priorities Grant is intended to support strategically important and high-cost subjects where the cost of delivery significantly exceeds income from tuition fees. However, the latest settlement removes funding for priority areas, including creative and performing arts, computing and pre-registration nursing.
London Higher Chief Executive Liz Hutchinson commented:
“Once again, creative education is first in line when savings need to be found. This is short-sighted and self-defeating. Creative industries are a UK growth priority and one of London’s strongest economic assets, supporting one in five jobs in the capital and contributing billions to the economy. Cutting the funding that trains the next generation of creative talent, while calling creative industries a priority sector makes no sense.
Alongside cuts to nursing and computing, these decisions will damage the talent pipeline our public services, economy and future prosperity depend on. London’s universities are already operating in an extremely challenging financial environment, and further reductions in funding cannot simply be absorbed without consequences
We recognise the difficult choices facing government and acknowledge the commitment to review Strategic Priorities Grant funding. However, that review must take a genuinely strategic view of the UK’s future skills needs. We look forward to working constructively with Government as part of that process.”
