Universities could have 10% more cash by 2014, university minister David Willetts has said. In the meantime, according to their funding body, English universities are facing 12% cuts.
Government funding of England's 130 universities is provided through the Higher Education Funding Council for England (Hefce) who has announced that spending on teaching will fall by 4% with spending on buildings and equipment halved.
"Universities that don't lose out so much are those that benefit from the very modest nature of the cut in research funding, as opposed to the more significant cut in teaching funding," Hefce's chief executive Sir Alan Langlands, said.
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"In our view, Britains more established universities, focusing on research will fare better under the new university funding regime. Those that rely on direct teaching and vocational courses are likely to be hardest hit. Universities offering limited lecture hours and favouring self-directed learning will do far better than those favouring a more hands-on classroom teaching. How the coalition government's approach fits with the drive to encourage the teaching of employability, with a clear focus on the "learner-led" approach to education, remains to be seen".
Read the David Willetts response to Hefce January 2010 report