Universities have been made to wait for answers on higher education and research funding after the chancellor’s much-anticipated Spring Statement focused on defence spending and economic growth.

With concerns that UK Research and Innovation could see its £8.9 billion budget cut next month – including a potential reduction in the sector’s £2 billion quality-related research grants – there were fears that Rachel Reeves’ statement to the House of Commons on 26 March could pile further financial pressure on UK universities, which have announced thousands of redundancies in recent weeks.

There were, however, few mentions of education or research in Reeves’ address, with the chancellor limiting her commitments on education to a £625 million package to train more construction workers in England over the next four years.

Details of any multi-year commitments on research or higher education funding are expected to be laid out in June when the government’s spending review is finalised.

�鶹

Some sector bodies believed the pledges to make the UK a “defence industrial superpower” by increasing spending by a further £2.2 billion by 2027 would require substantial input from higher education given the emphasis on “bringing innovative technology to the frontline at speed”.

Diana Beech, director of London Higher, said the chancellor’s omission of higher education in her statement was curious given her desire for more highly skilled engineers and scientists and cutting-edge technology.

�鶹

“At a time when UK universities are so central to preparing the country for a changing world, it is bewildering why the chancellor didn’t use the occasion to talk up the importance of the nation’s higher education and research sector and pave the way for fixing the foundations of our skills and innovation system in the future,” said Beech.

Overlooking the higher education sector neglected the crucial role played by universities in driving economic growth, agreed Vivienne Stern, chief executive of Universities UK.

“Growth has to be the name of the game and universities are a critical player,” said Stern, noting that institutions “act as super-connectors in their regions bringing together major employers, politicians and big public services to make sure they have the skills, research and innovations to succeed”.

“This country needs its universities to be firing on all cylinders. University leaders are working hard to cut costs to stabilise their finances, but government also has a role in ensuring that they are properly funded now and over the long term,” added Stern.

Urging the government to “not only protect but grow R&D investment”, Tim Bradshaw, chief executive of the Russell Group of research-intensive universities, said additional support would “help to maximise the impact of the UK’s world-leading researchers and universities, creating jobs, improving public services, leveraging private investment, and cementing the UK’s global reputation with trusted international partners”.

�鶹

There was also disappointment that the chancellor did not explicitly address the financial crises faced by many UK universities, which have collectively announced thousands of job cuts since the start of the year.

“Our world-leading higher education sector is facing a catastrophic crisis, threatening more than 10,000 jobs,” said Jo Grady, general secretary of the University and College Union.

“Our further education institutions remain scandalously underfunded, with teachers struggling to make ends meet. We need Keir Starmer to stop managing this decline and start investing,” she added.

�鶹

That sentiment was echoed by a spokesman for the Royal Society of Chemistry, who said “to achieve this jobs growth, investment in apprenticeships is also vital, while  to get through the substantial financial challenges it is facing”.

“Without a strong university sector that is delivering the education, skills, research and innovation that growth sectors such as chemistry need, the chancellor's plans to deliver a stronger economy will be impossible to achieve. It is crucial that the government addresses this issue, including through the current Department for Education review on higher education finances,” they added.

“We look forward to seeing the detail behind the fiscal measures announced today and await the detail of departmental allocations following the autumn budget last October. Proper scrutiny of R&D funding allocations is of great importance ahead of the spending review this June.”

Noting the “difficult context for the upcoming spending review”, Alicia Greated, executive director of the Campaign for Science and Engineering, said the chancellor had “emphasised the importance of economic growth – and we will continue, alongside the rest of the R&D sector, to make a strong case for R&D’s role in delivering it, and for an ambitious settlement for R&D and innovation in June.

�鶹

“We look forward to seeing the detail behind the fiscal measures announced today and await the detail of departmental allocations following the autumn budget last October,” added Greated, who said that “proper scrutiny of R&D funding allocations is of great importance ahead of the spending review this June”.

jack.grove@timeshighereducation.com