Credit crunch at root of Ambleside campus closure (From The Westmorland Gazette)

Credit crunch at root of Ambleside campus closure

10:00am Thursday 10th December 2009 in

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THE credit crunch and high costs have combined to almost cripple the ambitious University of Cumbria project - despite more than £65 million of public funds being pumped into it.

Launched to a great fanfare only two years ago, bosses of the university now find themselves having to slash costs to remain viable - with 140 jobs expected to go.

Dave Armstrong, of the Unison union, which represents support staff, said: “People are afraid.

"It is not an easy time to get a job and they are very worried about their future.”

The university’s initial business plan, formulated with the Higher Education Funding Council for England (HEFCE), had a strategy of forecasted deficits in the first three years, with a prediction of moving into profit by year four.

Bosses hoped to attract funding grants by increasing student numbers.

However, when the Government pumped billions into the financial system to stave off economic meltdown it was faced with having to slash public spending.

HEFCE was told, in February this year, it would not be able to provide funding for any further expansion in student numbers.

The University had failed in its first two years to attract sufficient student numbers to break even - recruiting 1999 undergraduates in 2007/08, 2063 in 2008/09 and has recruited 2529 for 2009/10.

“They have under-achieved in their student numbers,” said Tim Farron, MP for Westmorland and Lonsdale, a former manager with St Martin’s College.

“The outrage is that the one campus that did not fail to recruit was Ambleside.

"People are not as interested proportionately in coming to Carlisle and Lancaster, though the university could triple its numbers in Ambleside.

“Undoubtedly there have been poor decisions taken across the board.

"There has been a failure to exploit the potential of Ambleside,” he said.

The university is monitored by HEFCE and the Funders Forum.

A HEFCE spokesman said: “HEFCE does recognise that there are particular challenges facing the university with its dispersed campuses and bringing higher education to more remote areas.

"The University has found it difficult to recruit students in sufficient numbers and its growth has been slower than forecast.

"It is now adjusting its resource and financial plans to ensure the university is financially sustainable and able to invest for the future.

“We are supporting the university in developing a long-term, sustainable business plan.”

A spokesman for the Department for business, Innovation and Skills said the Government should not be blamed for the situation at the University of Cumbria.

“Institutions are autonomous organisations and as such are responsible for managing their own business,” they said.