University finance worries unfounded, says UCU

UCU joint general secretary, Sally Hunt, said: 'Universities in England said there would be an operating deficit of over £40m in 2005-6 and used this as one reason for struggling to meet agreed pay deals. The truth is that they had a £135million surplus. These figures highlight the worrying inaccuracy of the financial forecasts made by higher education institutions in England and reveal a £200million operating surplus for UK higher education as a whole in 2005-6.

'As part of the resolution to last year's pay deal, UCU called for a full enquiry into how much money is really in higher education. It is absolutely vital that there is no misunderstanding, especially as it will affect the level of pay rises in 2008-9 and 2009-10.'