§ Mr. Stuart Hollandasked the Secretary of State for Education and Science if he will give his reasons why the grant to universities is to be reduced by some 8 per cent. over the next three years, which because of the Government 's financial policy on overseas students will mean a decrease in income of some 13 to 15 per cent. while the recent White Paper on public expenditure shows an average reduction in Government spending of 4 per cent. over the same period.
§ Dr. BoysonThe average reduction in public expenditure is not a norm but a measure of the net effect of many separate decisions, including increases in some programmes.
The effect on university income of the withdrawal of subsidy for overseas students will depend upon the extent to which the subsidy withdrawn is offset by increased fee income from such students.