Expenditure Plans (Hansard, 6 November 1991)

§ Mr. Kenneth Clarke

As my right hon. Friend the Chancellor of the Exchequer announced in his statement today, the provision for the Department of Education and Science's own spending programme in 1992–93 will be £7,947 million, which is £627 million or 8.6 per cent. higher than the estimated outturn for 1991–92. This figure includes central Government expenditure on higher education, science, schools, and sport; it also includes specific grants to local authorities and credit approvals for capital expenditure by LEAs.

Capital Expenditure in Schools and Colleges

Local authority capital programmes at schools and colleges—annual capital guidelines and supplementary credit approvals—rise from £538 million in 1991–92 to £590 million in 1992–93. The total for local authority 138W schools rises from £472 million to £524 million—an increase of 11 per cent. Provision for building grants for voluntary aided schools increases from £130.8 million to £150.7 million, a rise of over 15 per cent. £28.5 million has been allocated for capital expenditure in grant-maintained schools, up from £10.5 million in 1991–92, reflecting the rapid increase in the number of schools entering this sector. The total for school building work rises to £703 million in 1992–93: up by some 10 per cent. in real terms over the equivalent figure for this year. The increase should also be seen against continuing downward pressure on building tender prices, which should enable sums allocated to new work this year and next to go even further. This level of provision underscores the Government's commitment to give priority to improving school buildings and to implementing the national curriculum, in particular science and technology.

For the third year running, available recurrent public funding for universities, polytechnics and colleges is planned to increase by some 10 per cent. outturn in the previous year—to £3.9 billion in 1992–93. Total recurrentand capital spending on all higher education—UFC, PCFC and other higher education—funded through fees and grant will be £4.4 billion in 1992.93.

These plans will enable the continued expansion of the number of students in higher education described in the White Paper "Higher Education: A New Framework" (Cm. 1541). More than one in four of all young people in Britain are expected to enter higher education in autumn next year and one in three by the end of the century. As the White Paper explained, the plans envisage additional public funding to support this expansion while also expecting institutions to take advantage of the efficiency gains available to them as they take on more students.

Based on actual enrolments to each sector up to October 1990, the plans allow for the following distribution between sectors of the projected number of students for 1992–93 given in the White Paper:

Projected Home and EC student numbers (FTE) (Financial years)
	thousands	Percentage increase
	1991–92	1992–93
PCFC	368	401	9.0
UFC	343	363	5.8

Under the Government's proposals to bring together universities, polytechnics and colleges into one higher education sector, the funds for 1993–94 will be made available to the new higher education funding councils. On a comparable basis to 1992–93, the planned available recurrent funding for 1993–94 and 1994–95 is £4.2 billion and £4.4 billion, some 17 per cent. and 22 per cent. respectively more than in 1991–92. Subject to the passage of the necessary legislation, there will be adjustments from 1993–94 to the planned funding for these years to take account of the changes in territorial responsibilities of the new funding councils.

These plans confirm that the Government are providing for the cost of the extra students enrolled as well as for an increase in resources for the funding councils. Universities, polytechnics and colleges remain free to take on, and finance through the tuition fee, as many qualified students as they are able to accommodate.

The level of fees which will be reimbursed through public funds in the academic year 1992–93 will be up to these limits: 139W

Classroom based courses: £1,855.
Laboratory/workshop based courses: £2,770.
Clinical medicine, dentistry and veterinary science courses: £4,985.
Postgraduate fee: £2,200.

The plans allow for an increase in fee income and capital and recurrent grant to the universities of £144 million in 1992–93, compared with estimated outturn for 1991–92. They will also benefit from extra income from tuition fees for every additional student enrolled beyond these plans.

The total planned recurrent grant for the Universities Funding Council in 1992–93 will be £1,585 million. The plans allow for a further transfer of resources to provision for science as part of the new boundary for dual support. Taking account of the dual support transfer, total planned available recurrent funding in 1992–93 is nearly 8½ per cent. higher than the expected level in 1991–92.

It will be for the universities to determine what can be afforded for academic pay within their overall resources, having regard to other cost increases, the scope for efficiency improvements and the need for additional staff. The Government will hold back £24 million of grant in 1992–93 for release only in the event of a satisfactory pay settlement for non-clinical academic staff which makes provision to relate pay more closely to performance.

Capital funding for the universities will be £9 million more than plans for 1991–92. This should allow a start to be made on an upgraded academic computer network, SuperJANET.

The plans allow for an increase in fee income and capital and recurrent grant to the polytechnics and colleges of £175 million in 1992–93, compared with estimated outturn for 1991–92. They will also benefit from tuition fee income for every additional student enrolled beyond these plans. The total planned recurrent grant for the Polytechnics and Colleges Funding Council in 1992–93 will be £898 million. Planned available recurrent funding in 1992–93 is some 12 per cent. higher than the expected level in 1991–92.

It will be for the polytechnic and college employers to determine what can be afforded for academic pay having regard to other cost increases, the scope for efficiency improvements and the need for additional staff. The Government will hold back £11 million of grant in 1992–93 for release only in the event of a satisfactory pay settlement for the lecturers to whom national negotiations currently apply which makes provision to relate pay more closely to performance.

Capital funding for the PCFC sector is increased to £137.5 million, a level over 50 per cent. higher than in 1989–90 when the polytechnic and college sector was established.

We will increase by 4½ per cent. the level of support to each student next year from grant and loan combined, thus maintaining its value in real terms. Mandatory awards and loans will be available for all eligible students who apply for them.

Public expenditure provision for the DES science programme, including expenditure financed by EC receipts, has been increased significantly to £1,054 million in 1992–93, £1,184 million in 1993–94 and £1,274 million in 1994–95. These figures include transfers from higher education funding of £48 million, £125 million and £154 million respectively, which will enable the research 140W councils, from August 1992, to meet the full costs of the projects which they support in higher education institutions.

Within these totals, the sums available for distribution by the Advisory Board for the Research Councils will be £1,050 million, £1,181 million and £1,270 million. The totals for 1992–93, 1993–94 and 1994–95 are £29 million, £50 million and £85 million higher than previous plans for those years. Total science provision for each year will be 7, 12 and 19 per cent. higher in cash than the estimated outturn in 1991–92, excluding the sums transferred and after allowing for the one-off saving of £8 million in 1991–92 on postgraduate fees. This gives an excellent basis for the research councils to plan and manage basic and strategic research.

I am inviting the Advisory Board for the Research Councils to advise me on the distribution of these resources which will best advance the Government's aims for civil science in the interests of the nation as a whole.

The plans provide for the successful establishment and development of the 15 city technology colleges announced, and for a start from 1993–94 on spreading CTC principles and practices into other secondary schools.

The 1992–93 settlement for recurrent provision for grant-maintained schools takes account of the rapid increase in projected school numbers; there are already over 100 grant-maintained schools operating, and numbers are projected to double by April 1992.

We shall make available, subject to the passage of the Further and Higher Education Bill, £25 million in 1992–93 for the costs of establishing the Further Education Funding Council and preparing further education and sixth form colleges for independence from local authority control.