§ Lord Aveburyasked Her Majesty's Government:
Whether they will estimate the net savings of public expenditure arising from the proposed cuts in higher education itemising separately the loss of income taxes, national insurance and superannuation contributions of members of academic staff, losses of indirect taxation on the spending of persons who would otherwise have been employed in higher education, and any other indirect effects which can be identified.
§ The Parliamentary Under-Secretary of State, Department of Health and Social Security (Lord Elton)The provision for higher education current expenditure in Cmnd. 8175 implies savings at 1980 survey prices of £70 million in 1981–82, £120 million in 1982–83 and £160 million in 1983–84, compared with provision in 1980–81.
Institutions are currently formulating plans for 402WA adjusting to their lower levels of funding, therefore no accurate estimate can yet be made of the total number of job losses that will be involved. Changes in transfer payments and in tax and other revenues will depend entirely upon how quickly those who would otherwise have occupied posts in higher education find alternative employment, and the nature of that payment.