A new report by Policy Exchange, a leading British thinktank, has advised the government to cut £half a billion poundsm in funding from higher education to safeguard the further education sector. The report found that funding for higher education institutions rapidly increased since the introduction of tuition fees. With a rise in overall income of 26% since 2009-10, universities are now sitting on £12.3bn of unrestricted reserves. However, further education (FE) colleges have seen a significant drop in revenue, to the point that 25% of the entire British FE college network could go bankrupt within a year, hampering growth of training needed for technical jobs in the UK labour market.
A new report by Policy Exchange, a leading British thinktank, has advised the government to cut £500m in funding from higher education to safeguard the further education sector. The report found that funding for higher education institutions rapidly increased since the introduction of tuition fees. With a rise in overall income of 26% since 2009-10, universities are now sitting on £12.3bn of unrestricted reserves. However, further education (FE) colleges have seen a significant drop in revenue, to the point that 25% of the entire British FE college network could go bankrupt within a year, hampering growth of training needed for technical jobs in the UK labour market.