University estates body issues warning after party confirms plan to cut fees by a third if it wins May鈥檚 election

Universities

Plans by Labour to reduce tuition fees by a third could result in universities pulling planned building projects, the Association of University Directors of Estates (AUDE) has warned.

The body of university estates directors told 好色先生TV many universities may put capital projects on hold or cut back on maintenance spending amid political uncertainty in the run up to the May general election.

Douglas Alexander, Labour鈥檚 election strategy co-ordinator, this week confirmed his party will cut tuition fees from 拢9,000 per student to 拢6,000 if it wins power in the May general election.

The party will flesh out its policy on university funding later this month; it has previously said it favours transitioning from a tuition fee funding system to a graduate tax.

Andrew May, AUDE East Midlands representative and director of estates at the University of Hertfordshire, said: 鈥淟abour鈥檚 proposals will certainly make some universities stop and re-think their capital projects, but others will carry on regardless.

鈥淭he outcome of the election is a great unknown. It is not just who will get in, all the parties are unclear on what their policies are if they do win the election.鈥

Labour鈥檚 as yet unfunded tuition fee policy commitment provoked an angry reaction from Universities UK, the body representing university vice-chancellors, which wrote to the Times to warn the policy would leave a 拢10bn black hole in university finances over five years.

Marcus Fagent, EC Harris鈥 head of education and children鈥檚 services, told 好色先生TV he estimated uncertainty over university funding 鈥渃ould lead to a reduction of between 拢0.5bn and 拢1bn a year in university capital spending per annum鈥.

Fagent described Labour鈥檚 planned cut in tuition fees, alongside the suggestion the party may introduce a cap on the number of students a university can recruit, as a 鈥渄ouble whammy鈥 that would constrain universities鈥 ability to 鈥渇und many capital projects within the sector鈥.

Fagent said: 鈥淭his in turn could hit construction industry revenues, reduce jobs and lessen the ability of universities to be competitive in the global market for students.鈥

University capital expenditure stood at 拢2.75bn in 2013, and the sector as a whole has an estate slightly smaller than the NHS, occupying 6 million m2.

May said his own university would press ahead with its capital spending plans: 鈥淲e [Hertfordshire] are not stopping because there is an election, we can鈥檛 afford to.鈥