Universities ‘to boost investment’

UNIVERSITIES are set to increase investment in teaching and student facilities as the competition for students gets tougher, despite financial concerns.

That’s according to an annual survey of university finance directors by the accountancy group Deloitte.

It found 83% of the 48 polled – representing around a third of the sector – plan increases in capital expenditure and 61% of spending will be focused on teaching facilities.

But 89% said there are high levels of financial uncertainty facing their university, and levels of debt and philanthropic donations are expected to increase.

Jay Bevington, North West head of public sector at Deloitte, said: “The results of our latest survey suggest there is a ‘prudence paradox’ affecting the higher education sector.

“Finance directors are wary of the financial environment and favour strong financial management over risk-taking. But, at the same time, ambition and investing for growth are both needed. As such, risk taking is a necessary strategy for universities.

“We see in our own discussions with universities that investment in teaching and research are at the forefront of their strategies. With record numbers of students heading to university following the recent A-Level results and the relaxation of controls on student numbers, there is increased competition to attract students. Meanwhile, students themselves see the quality of teaching as a key factor in choosing where they study.”