Reaction to union's warning over education cuts

8 July 2010

CMI (Chartered Management Institute) has today reacted to the views expressed by the University College Union (UCU) after it analysed the effect of the government's proposed 25 per cut for university funding.

The union has argued that over 20,000 jobs will be lost if higher education funding is cut, with UCU general secretary, Sally Hunt, claiming that the budget restrictions will prevent the UK from remaining "a major force in the global knowledge economy".

Responding to the union's claims, Petra Wilton, director of policy and research at CMI, comments:

"There is no denying that cuts are necessary if the UK is to scale the heights of its debt mountain, but taking such a swinging axe to university funding is extremely risky.

"Employers across the UK are increasingly worried about the calibre of entrants to the job market and reducing the number of lecturers will impact on the quality of education that undergraduates receive, especially as we currently invest less in high-level skills in the UK than in many of our European neighbour states.

"We do not under-estimate the need for budget cuts, but we should also look more strategically at the scope for cost effectiveness. Rather than salami-slicing the budgets of individual universities there is scope for savings from reducing regulation and quangos and through more co-ordinated provision of services. Universities already provide many courses that are managed by professional bodies who have the structures in place to offer accreditation and assessment services. These partnerships could be more widely exploited to help achieve the government's savings and desire to improve employability."