Release of 2006/07 HESA Finance data reveals income of UK higher education sector tops £20 billion

Data from the newly released HESA HE Finance Plus 2006/07 publication shows that the total income of UK higher education institutions exceeded £21.2 billion for the first time. Income for the sector rose 9.0% from the 2005/06 total of £19.5 billion. Total expenditure in the sector saw a similar level of increase, rising 8.8% from £19.4 billion to £21.0 billion.

Funding council grants remained the largest single source of income, exceeding £8.0 billion for the first time. Among other sources of income, tuition fees & education grants & contracts saw the largest percentage increase, rising 16.0% from £4.7 billion in 2005/06 to £5.4 billion in 2006/07. Most of this increase is due to the introduction of new fee arrangements in 2006/07. Over a quarter (25.4%) of the HE sector’s income now comes from tuition fees & education grants & contracts.

Staff costs remain the most significant type of expenditure for HE institutions. Staff costs rose by 8.7% from £11.2 billion in 2005/06 to £12.2 billion in 2006/07, accounting for 57.8% of all expenditure.

The HE Finance Plus 2006/07 CD-ROM, published by HESA includes finance data broken down to institutional level including tuition fees and education grants, balance sheets, cash flow, capital expenditure, financial profiles and more. HE Finance Plus 2006/07 is available for purchase for £250 + VAT (or £130 + VAT to HE institutions contained in the data) from the HESA sales desk by calling (01242) 211155. The HESA reference volume Resources of Higher Education Institutions 2006/07, due to be published in May, also contains data on HE finances as well as data on the HE staff workforce.

Further information is available online or from the HESA Press Office on 01242 211120.

Notes for Editors

1. Press enquiries should be directed to:
   
   • Simon Kemp
   • HESA Press Officer
   • 01242 211120
   • [email protected]
   • 95 Promenade, Cheltenham, GL50 1HZ.
2. Where comparisons are made between the latest financial year (2006/07) and the previous year (2005/06), the previous year’s figures are those reported in the re-stated financial statements.
3. The data in this release relates to all UK HE institutions. Figures for the individual nations of the UK are available on request.
4. HESA cannot accept responsibility for any inferences or conclusions derived from the data by third parties.
5. Definitions of the terms used above follow:
   

   Finance Definitions 2006/07

   Reference dates 2006/07

   Financial data relates to the institutions’ financial year, i.e. 1 August 2006 to 31 July 2007.

   Reference dates 2005/06

   Financial data relates to the institutions’ financial year, i.e. 1 August 2005 to 31 July 2006.

   Sources of income

   Funding council grants

   Funding council grants include those from the Higher Education Funding Council for England (HEFCE), the Higher Education Funding Council for Wales (HEFCW), the Scottish Further and Higher Education Funding Council (SFC), the Training and Development Agency for Schools (TDA) and the Department for Employment and Learning Northern Ireland (DEL).

   Tuition fees & education grants & contracts

   This includes all income received in respect of fees for students on courses for which fees are charged. Where fees are waived in whole or in part, the income due though not received is included.

   Following the introduction of variable student fees in the 2006/07 academic year for institutions in England, Northern Ireland and Wales, this information is now administration specific.

   Research grants & contracts

   This includes all income in respect of externally sponsored research carried out by the institution or its subsidiary undertaking for which directly related expenditure has been incurred.

   Other income - other services rendered

   This includes all income in respect of services rendered to outside bodies, including the supply of goods and consultancies.

   Endowment and investment income

   This includes income from specific endowment asset investments, general endowment asset investments, other investment income and other interest receivable.

   Categories of expenditure

   Staff costs

   This covers all, and only, those full-time and part-time staff who have a contract of employment with the institution and includes any redundancy or restructuring payments (that are not treated as exceptional items) made to these staff.

   Other operating expenses includes costs in respect of payments to non-contracted staff or individuals, all other non-staff costs incurred, except for depreciation and interest payable. Equipment that has not been capitalised, expenditure on maintenance contracts and telephone costs (calls, rental and non-capitalised equipment) if not charged to departments, are also included in this category.

   Depreciation includes depreciation costs on equipment capitalised according to where the assets being depreciated are located.

   Interest payable includes costs in respect of interest payable on premises, residences and catering operations (including conferences) and other expenditure.

Ends