Who will weather financial storm?
Universities are more heavily in debt and borrowing more than at any time since 1997, Education Guardian can reveal. And some, despite being millions of pounds in the red, still plan to spend millions more on buildings and refurbishments. This at a time when recession is thought to be around the corner, and borrowing money is getting more expensive. Steve Egan, deputy chief executive of the Higher Education Funding Council for England (Hefce), told Education Guardian: “The level of borrowings, as compared to the level of total income, is the highest since 1997. In actual terms (that is, the amount rather than a percentage), the level of borrowings in 2005-06 was higher than ever before.” Phil Harding, chair of the British Universities Finance Directors Group and finance director at the University of Westminster, confirms that universities’ borrowing and debt are “the highest for 10 years”. “It is risky,” Harding says. “There is no getting around that. And yes, you could paint a picture
