A DECISION to end undergraduate provision at Ambleside’s historic educational centre has been described as “madness” and a “huge blow” to the town with economic comparisons being made to the damaging recent floods.

Bosses at the heavily indebted University of Cumbria are seeking to save £2 million a year - and the institution’s future viability - by pulling the plug on undergraduate provision at the former Charlotte Mason college.

Vice-chancellor Peter McCaffery said the heavily indebted institution was just “months away” from financial collapse with more than £20 million debt. It expects to lose a further £7 million this financial year.

Courses will be shifted to the institution’s other campuses, at Penrith, Lancaster and Carlisle, from next summer.

Tim Farron, MP for Westmorland and Lonsdale, believes the removal of undergraduate learning in the town “could be the end” for education in Ambleside - which he described as the university’s ‘jewel in its crown’.

“Ambleside has proven to be the most successful campus in terms of recruitment in recent years - to effectively close the campus is madness as well as a huge blow to staff, students and the whole local economy.”

The future of the university’s Newton Rigg campus, near Penrith, will also be reviewed over the next four months.

The Hilltop and library buildings, in Ambleside, will be maintained and used for outdoor education and business support, along with the Mountain Heritage Trust.

Hundreds of students were told they would have to relocate to other sites in order to continue their education at a packed meeting in the Rydal Road campus’ Barn Theatre on Tuesday evening. They became increasingly angry, and some were reduced to tears, as heads of faculty explained the situation.

Second year student Kayleigh Goode, speaking to managers at the meeting, said: “We picked this campus because this was a location where we wanted to be. How can you move us and charge us for it? We are not refugees. Are you going to reimburse us for the last year and a half?”

Other students raised concerns about being locked into two-year contracts with landlords.

Professor McCaffery said the university’s financial deficit was largely due to an “historic debt legacy” caused by unsustainable staffing costs. Other debts were incurred during a voluntary severence scheme - which saw duplicated staff paid to leave when the university was formed.

A further £500,000 has been spent on consulation fees for a proposed consolidated campus in Carlisle, and the unavailablity of Government funds through the Learning Skills Council, and a cap on additional student numbers has left the university’s future looking bleak.

“I really regret that we have had to do this and we realise it is disruptive to students,” said Prof McCaffery. “I can understand their anger. It is not something we want to do but unfortunately we have to do this.”

It is expected that around 100 jobs could be lost, from 1,700, across the university as a whole. Most support staff in Ambleside could go, though it is hoped most academic staff could transfer to other sites. The university employs 140 at Ambleside.

Roger Grinyer, spokesman for the Higher Education Funding Council for England, said: “We are aware that they face financial challenges and we are monitoring the situation and working with them to solve the situation.

“Clearly the previous plans were not working and action needed to be taken, perhaps it should have been taken earlier.

“Clearly the fact that they are doing this now means they are trying to put things back on track.”

The community believes the move will have a “devastating effect” on Ambleside’s local economy, which could lose up to £1.5 million a year.

Leslie Johnson, chair of Lakes Parish Council, said: “It is an enormous blow. From our point of view, it is as disastrous as the floods in Cockermouth. This is the Charlotte Mason college, for goodness sake.

“The university is the fabric of the village and the vibrancy that comes from having young people around will be lost. They work in and around the village and support the economy.”

Many businesses employ students, including the Lake Road Wine Bar.

Landlord Mike Brass said: “I think it’s disgraceful. For certain events, such as open mic nights, we have a massive student following, but it’s not just from a personal point of view.

“An influx of young people always has a positive effect in my opinion - quite a lot of people rent houses to students. By and large the students are good for the community.”

However, Bill Smith, chief executive of South Lakes Development Trust, said the move could lead to some positives.

He said: “This might be an opportunity for Ambleside to become a centre for high tech skills development in the Lake District - halls of residence could be converted to provide live/work units capable of attracting a new, highly skilled resident population, and the housing stock vacated by students might then become more readily available and affordable for those employed in such clean industries.

"Ambleside as our very own Silicon Valley? Until we have the whole picture, who knows?”