HC Deb 09 May 1963 vol 677 cc661-2
43. Mr. Johnson Smith

asked the Chancellor of the Exchequer, whether he will now make a statement about the review of the universities quinquennial settlement.

Mr. Boyd-Carpenter

I told the House on 9th April that the Government had decided to bring forward the review of the quinquennial grants to universities promised by my predecessor, and that I had already sought the advice on this of the University Grants Committee. I had particularly in mind the increase in university costs which has occurred since the universities prepared their estimates for this quinquennium in June, 1961.

I have now received and considered the Committee's advice. I am glad to be able to announce that the grants for the four remaining academic financial years of the quinquennium, beginning in August next, will be increased by an amount of ₣16,100,000, spread over the four years. I am circulating in the OFFICIAL REPORT more detailed figures of provision for the universities over the quinquennium.

The University Grants Committee advise me that in their view, provided there is no further significant increase in university costs during the remainder of the quinquennium, the grants which I have just announced should enable the universities to reach the student target of 150,000 by 1966–67.

Mr. Johnson Smith

I thank my right hon. Friend for that generous reply, which I am sure will be warmly received in many quarters. Will he reassure us that, if there is a significant increase in university costs outside the control of the universities, he will consider this with the same sympathetic approach to their problems as we have come to expect of him?

Mr. Boyd-Carpenter

I can certainly give that assurance. The fact that we have, in the circumstances, brought forward by a year the review promised by my predecessor is an indication of our general attitude to this matter.

Mr. Mitchison

Will this increase in grant be adequate to cover the increase in buildings and equipment which will be required for the increased number of students?

Mr. Boyd-Carpenter

My statement actually related to recurrent grants, which do not cover buildings. I did, however, make a statement about capital grants, which relate to buildings, not very long ago.

Mr. Longden

Is my right hon. Friend aware that his Answer will give great satisfaction all round? Are the University Grants Committee and the Government still of opinion that the target figure of students for 1966 is large enough?

Mr. Boyd-Carpenter

I think that the target figure is probably the best that can be achieved for this quinquennium if standards are to be maintained. But this is certainly a matter we shall have to look at afresh when we receive the report of the Robbins Committee, later this year.

Following are the details:

The £16.1 million will be allotted as below:
£m.
— As an-nounced Addition New in April, figure 1962 Addition. New figure
1963–64 … 60.5 3.5 64
1964–65 … 65.5 3.9 69.4
1965–66 … 70.5 4.2 74.7
1966–67 … 76.5 4.5 81.0

These figures are in addition to the extra provision to cover increases in academic salaries which have been already announced. During the quinquennium that extra provision will cost about £19 million. Total public expenditure on university education, including the recurrent grants, salaries, capital expenditure, and student awards is now estimated at over £760 million in this quinquennium.