UCU welcomes report on higher education's financial health

The union said that pessimism from universities over implementing past and future pay deals had proved unfounded.

The report, HE Finance Plus 2006-07, showed that total income for higher education institutions (HEIs) had exceeded £20 billion for the first time (£21.2 billion). Income in the sector had risen by 9.0% from 2005/06 to 2006/07 and expenditure had risen by slightly less at 8.8%.

UCU general secretary, Sally Hunt, said: 'This is a very timely report that reveals a sector in a healthy state financially. We have heard much from the employers recently pleading poverty when it comes to implementing pay deals and we will now be examining the details of individual institutions' finances.

'It is worth noting that spending on staff costs as a proportion of total expenditure stayed constant at 57.8% in 2005-06 and 2006-07. Although many institutions implemented the pay Framework Agreement in 2006/07, which saw starting salaries increase for many staff, the impact on university budgets has not been anywhere near as marked as many institutions feared or led us to believe it would be.'

The full HESA release and tables are available here.