A new report by British FE, 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 Policy Exchange 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.