Press Release 174 - Finances of UK Higher Education Institutions 2010/11

 

RELEASE:

09:30 hours
Thursday 8
March 2012

Finance Plus

Income of Higher Education Institutions £27.6 billion in 2010/11

HESA electronic publication 'HE Finance Plus 2010/11' released today


HE Finance Plus 2010/11
shows that the total income of higher education institutions (HEIs) last year was £27.6 billion. Funding bodies provided £8.9 billion of this income, while tuition fees and education contracts contributed £9.0 billion.

Chart A below shows the proportions of total income of UK higher education institutions by source in 2010/11:

    Pie chart showing income of UK HEIs by source in 2010/11

The different sources are further broken down in Table 1 below. The recurrent teaching and research grants account for most of the funding body income at £5.7 billion and £2.0 billion respectively.

Income from home and EU domicile students’ course fees was £5.4 billion – 19.6% of the total income for UK HEIs. Non-EU students’ course fees totalled £2.9 billion in 2010/11 accounting for 10.7% of total income.

The Research Councils, The Royal Society, British Academy and The Royal Society of Edinburgh together contributed the largest portion of research grant and contract income. Research grants and contracts from non-UK sources contributed £804 million (2.9%) to the total income of UK HEIs.

Residences and catering operations added a further £1.6 billion to the income of HEIs while investment and endowment income added a further £241 million.

Table 1. Sources of income for UK HEIs 2010/11 (£thousands)
Source Income % of total income
Funding body grants 8,877,801 32.2%
   Recurrent (teaching) 5,698,769 20.7%
   Recurrent (research) 1,952,309 7.1%
   Recurrent - other (including special funding) 740,787 2.7%
   Release of deferred capital grants - buildings 258,535 0.9%
   Release of deferred capital grants - equipment 144,517 0.5%
   Grants for FE provision (not applicable to SFC) 82,884 0.3%
Tuition fees and education contracts 8,975,819 32.6%
   Home and EU domicile students course fees 5,401,635 19.6%
   Non-EU domicile students course fees 2,944,968 10.7%
   Non-credit-bearing course fees 407,427 1.5%
   FE course fees 50,170 0.2%
   Research training support grants 171,619 0.6%
Research grants and contracts 4,432,394 16.1%
   BIS Research Councils, The Royal Society, British Academy and The Royal Society of Edinburgh 1,558,201 5.7%
   UK-based charities 920,779 3.3%
   UK central government bodies/local authorities, health and hospital authorities 807,935 2.9%
   UK industry, commerce and public corporations 293,938 1.1%
   EU Sources 513,016 1.9%
   Non-EU sources 291,098 1.1%
   Other sources 47,427 0.2%
Other income 5,034,898 18.3%
   Other services rendered 1,620,093 5.9%
   Residences and catering operations (including conferences) 1,563,920 5.7%
   Grants from local authorities 9,023 0.0%
   Income from health and hospital authorities (excluding teaching contracts for student provision) 371,456 1.3%
   Release of deferred capital grants 110,958 0.4%
   Income from intellectual property rights 51,624 0.2%
   Other operating income 1,307,824 4.7%
Endowment and investment income 240,627 0.9%
Total income* 27,561,539 100.0%
Source: HESA HE Finance Plus 2010/11
* Includes income from joint ventures.

Table 2 shows the changes in income from the major sources from the previous year. Tuition fee income increased by 8.3% while income from funding body grants fell by 1.8%.

Table 2. Sources of income for UK HEIs 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Funding body grants 9,043,793 8,877,801 -1.8%
Tuition fees and education contracts 8,287,779 8,975,819 8.3%
Research grants and contracts 4,346,357 4,432,394 2.0%
Other income 4,905,878 5,034,898 2.6%
Endowment and investment income 215,087 240,627 11.9%
Total Income* 26,798,894 27,561,539 2.8%
Source: HESA HE Finance Plus 2010/11
* Includes income from joint ventures.

Expenditure £26.2 billion

Total expenditure of UK HEIs in 2010/11 was £26.2 billion. Staff costs contributed £14.7 billion towards this total. Chart B below shows the total expenditure of UK higher education institutions by type in 2010/11:

    Pie chart showing expenditure of UK HEIs by type in 2010/11

Table 3 shows the changes in expenditure for the major types from the previous year. While overall expenditure increased by 1.5%, expenditure on staff costs only increased by approximately half that rate (0.7%)

Table 3. Expenditure by type for UK HEIs 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Staff costs 14,633,889 14,730,242 0.7%
Other operating expenses 9,362,419 9,651,373 3.1%
Depreciation 1,396,363 1,478,453 5.9%
Interest and other finance costs 453,249 372,791 -17.8%
Total Expenditure 25,845,920 26,232,859 1.5%
Source: HESA HE Finance Plus 2010/11

HE Finance Plus 2010/11

HE Finance Plus 2010/11 includes finance data broken down to institutional level including tuition fees and education contracts, balance sheets, cash flow, capital expenditure, financial profiles and more. HE Finance Plus 2010/11 is available to purchase and instantly download from http://www.hesa.ac.uk/pubs/financeplus .

The related HESA product, Finances of Higher Education Institutions, containing a subset of the HESA finance collection will be published in May. Results of the 2010/11 HE Business and Community Interaction Survey will be also be published in May. A full schedule of all HESA releases for 2012 can be found here: http://www.hesa.ac.uk/pubs_schedule


Notes for Editors

  1. Press enquiries should be directed to:

    Simon Kemp
    HESA Press Officer
    01242 211120
    pressoffice@hesa.ac.uk
    95 Promenade, Cheltenham, GL50 1HZ.

  2. Data in the tables represent cash figures and are not adjusted for inflation.

  3. Values in Charts A and B are shown rounded to the nearest £0.1 billion. The sum of these values may not match the total values given in the text. Percentages in all Tables and Charts are shown rounded to one decimal place and may not sum to 100%.

  4. HESA Finance data is collected from all publicly funded Higher Education Institutions (HEIs) in the UK, plus the University of Buckingham, which is a non-publicly-funded institution. The 2010/11 data covers 164 HEIs (130 in England, 11 in Wales, 19 in Scotland and 4 in Northern Ireland).

  5. Where comparisons are made between the latest financial year (2010/11) and the previous year (2009/10), the previous year’s figures are those reported in the re-stated financial statements.

  6. The data in this release relates to all UK HE institutions. Figures for the individual nations of the UK are available in the Annex below: England; Wales; Scotland; Northern Ireland; Non-EU domicile students' course fees 

  7. An equivalent press release for 2009/10 was published in 2011 at http://www.hesa.ac.uk/pr157

  8. HESA cannot accept responsibility for any inferences or conclusions derived from the data by third parties.

  9. Definitions of the terms used in this press release can be found on-line here: http://www.hesa.ac.uk/intros/financesdefs0910

 

Annex - equivalent tables for England, Wales, Scotland and Northern Ireland

England

Sources of income for HEIs in England 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Funding body grants 7,280,195 7,204,728 -1.0%
Tuition fees and education contracts 7,157,716 7,759,318 8.4%
Research grants and contracts 3,498,886 3,565,156 1.9%
Other income 4,124,168 4,224,043 2.4%
Endowment and investment income 176,455 195,697 10.9%
Total Income* 22,237,420 22,948,942 3.2%
Source: HESA HE Finance Plus 2010/11
* Includes income from joint ventures.

Expenditure by type for HEIs in England 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Staff costs 1,2069,249 12,153,922 0.7%
Other operating expenses 7,775,225 8,045,072 3.5%
Depreciation 1,167,490 1,236,904 5.9%
Interest and other finance costs 399,291 333,548 -16.5%
Total Expenditure 21,411,255 21,769,446 1.7%
Source: HESA HE Finance Plus 2010/11

Wales

Sources of income for HEIs in Wales 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Funding body grants 453,895 415,676 -8.4%
Tuition fees and education contracts 378,958 409,620 8.1%
Research grants and contracts 155,641 164,500 5.7%
Other income 241,262 246,086 2.0%
Endowment and investment income 6,622 8,100 22.3%
Total Income* 1,236,378 1,243,982 0.6%
Source: HESA HE Finance Plus 2010/11
* Includes income from joint ventures.

Expenditure by type for HEIs in Wales 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Staff costs 709,107 712,252 0.4%
Other operating expenses 418,219 431,077 3.1%
Depreciation 53,357 54,811 2.7%
Interest and other finance costs 19,565 13,546 -30.8%
Total Expenditure 1,200,248 1,211,686 1.0%
Source: HESA HE Finance Plus 2010/11

Scotland

Sources of income for HEIs in Scotland 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Funding body grants 1,100,161 1,065,029 -3.2%
Tuition fees and education contracts 627,808 678,842 8.1%
Research grants and contracts 600,574 613,404 2.1%
Other income 449,822 474,220 5.4%
Endowment and investment income 25,771 29,286 13.6%
Total Income* 2,804,136 2,860,781 2.0%
Source: HESA HE Finance Plus 2010/11
* Includes income from joint ventures.

Expenditure by type for HEIs in Scotland 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Staff costs 1,559,783 1,571,204 0.7%
Other operating expenses 1,002,117 999,971 -0.2%
Depreciation 148,582 159,124 7.1%
Interest and other finance costs 25,299 21,179 -16.3%
Total Expenditure 2,735,781 2,751,478 0.6%
Source: HESA HE Finance Plus 2010/11

Northern Ireland

Sources of income for HEIs in Northern Ireland 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Funding body grants 209,542 192,368 -8.2%
Tuition fees and education contracts 123,297 128,039 3.8%
Research grants and contracts 91,256 89,334 -2.1%
Other income 90,626 90,549 -0.1%
Endowment and investment income 6,239 7,544 20.9%
Total Income* 520,960 507,834 -2.5%
Source: HESA HE Finance Plus 2010/11
* Includes income from joint ventures.

Expenditure by type for HEIs in Northern Ireland 2009/10 and 2010/11 (£thousands)
  2009/10 2010/11 % change
Staff costs 295,750 292,864 -1.0%
Other operating expenses 166,858 175,253 5.0%
Depreciation 26,934 27,614 2.5%
Interest and other finance costs 9,094 4,518 -50.3%
Total Expenditure 498,636 500,249 0.3%
Source: HESA HE Finance Plus 2010/11

Non-EU domicile students’ course fees

Income from non-EU domicile students course fees by location of institution 2010/11 (£thousands)
Location of institution Non-EU domicile students course fees % of total income
England 2,520,018 11.0%
Wales 107,172 8.6%
Scotland 305,499 10.7%
Northern Ireland 12,279 2.4%
United Kingdom 2,944,968 10.7%
Source: HESA HE Finance Plus 2010/11