Universities and colleges to help stimulate economic activity

03 December 2008

Universities and colleges are being asked to review their capital investment plans to bring forward £250 million of capital expenditure from 2010-11 to 2009-10 and 2008-09 to help stimulate economic activity.

Steve Egan, Deputy Chief Executive of HEFCE, has set out the terms under which universities and colleges can bring forward capital projects in a circular letter.

The move follows the Chancellor's pre-budget report on 24 November when he announced a package of measures to address the current economic position. These included bringing forward the £3 billion total of capital expenditure.

The letter says that, with levels of annual capital investment in English higher education running in excess of £2 billion, bringing forward £250 million should be an achievable target. Higher education institutions are being asked to bring forward £200 million to 2009-10 and £50 million to 2008-09.

The letter makes it clear that there is no additional capital funding available: 'This is about bringing forward capital expenditure within the same total over the three years 2008-09 to 2010-11.'

A panel of experts drawn from the sector will advise on the selection of projects. Priority will be given to those that have the greatest economic impact in terms of their direct benefit to the level of economic activity in the UK.

HEFCE is inviting comments on the criteria to be used by the panel in selecting projects. These include:

  • the direct impact on the construction and supporting industries in the UK
  • the direct impact on the local, regional, or national economy and employment
  • the environmental impact of the proposed project(s), in particular their contribution to reducing carbon emissions
  • the project(s) will be completed by March 2010
  • the expenditure is not on the residential estate.

Projects will need to be delivered by March 2010.

Further details are available in 'Bringing forward capital spending from 2010-11' HEFCE Circular letter 35/2008

Page last updated 7 February 2012

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