HC Deb 17 March 2003 vol 401 cc572-3W
Mr. Pope

To ask the Secretary of State for Education and Skills what the total debt of universities in England was in the last year for which figures are available. [102398]

Margaret Hodge

The Higher Education Funding Council for England published "Outcomes of 2002 financial forecasts and annual operating statements" in January 2003. This report is based on information provided by higher education institutions in July 2002. The forecasts were based on assumptions reflecting the prevailing general economic climate and the funding announcements made at the time and so do not take account of the Spending Review settlement for 2003–04 to 2005–06.

The table is at Annex D of that report and shows the balance sheet for universities in England based on actual figures as at 31 July 2001 and forecasts to July 2006. Debt is some £4.5 billion as at end July 2001, significantly below the total funds for the sector of £11.69 billion overall. (Debt is quantified by adding 4d and 7d from the following table.)

Annex D: 2002 financial forecasts—Balance sheet
£000
As at 31 July:
20011 20022 20032 20042 20052 20062
11b. General endowments 525,679 496,884 500,611 507,479 515,089 522,970
11c. Total endowments 2,326,776 2,219,010 2,332,832 2,393,162 2,457,136 2,524,118
12. Reserves
12a. Revaluation reserve 3,020,263 2,846,282 2,773,944 2,662,111 2,599,120 2,556,747
12b. Minority interest 42,418 4,974 4,732 5,377 6,221 7,855
12c. Income and expenditure account 3,688,277 3,848,353 3,914,489 4,191,113 4,385,877 4,540,613
12d. Total reserves 6,750,958 6,699,610 6,693,165 6,858,601 6,991,218 7,105,215
13. Total funds 11,692,407 11,994,809 12,996,301 13,642,824 13,914,886 14,049,205
1Actual
2 Forecast

As a result of the latest Spending Review announcements, Government spending on higher education will rise by more than 6 per cent. a year above inflation over the next three years.