'BIS settles with Treasury' on spending review

The Department for Business, Innovation and Skills has reached a settlement with the Treasury in negotiations over the 2015-16 spending review, reports suggest

June 24, 2013

Business secretary Vince Cable is said to have been the last to reach a deal for his department ahead of the review, being announced to the House of Commons on 26 June.

Mr Cable is also reported to have secured one of the lowest cuts of the non-protected departmental budgets, at nearer to 8 per cent than the 10 per cent forecast.

This could mean the department having to save closer to £1.1 billion rather than the £1.4 billion previously thought. Together departments are being asked to find cuts worth £11.5 billion.

However, where the cuts will come from remains uncertain. As Times Higher Education reported last week, ministers look likely to abandon plans to find £875 million in savings by moving medical research and education budgets to the Department of Health; although a partial transfer remains a possibility.

If the proposal is dropped, it would raise the prospect of deeper cuts for higher education and the possible slashing of the National Scholarship Programme.

After George Osborne, the chancellor, announces each department’s settlement for 2015-16 on Wednesday, chief secretary to the Treasury, Danny Alexander, will announce detailed, longer-term plans for infrastructure spending on June.

Earlier this month Mr Osborne said that he hoped at the spending review to set out “the long-term commitment to science not just…the science budget for the year 2015-16”, raising speculation that science investment might form part of the infrastructure package. 

elizabeth.gibney@tsleducation.com

Already registered?

Sign in now if you are already registered or a current subscriber. Or subscribe for unrestricted access to our digital editions and iPad and iPhone app.

Have your say

Log in or register to post comments

Featured Jobs

Register to continue  

You've enjoyed reading five THE articles this month. Register now to get five more, or subscribe for unrestricted access.

Most Commented

Globalisation

Times Higher Education World University Rankings data reveal the top 200 most outward-looking institutions

Common cactus finch (Geospiza scandens)

Tiffany Taylor on a thought-provoking view of the forces acting to ensure survival

Stressed businessman answering four telephones

Some surveys show faculty putting in at least 60 hours a week, but research casts doubt on whether this is a productive routine

Student asking question during class

University of Reading research finds link between undergraduate satisfaction and ethnicity of lecturers

Level of quality compass

Authors argue this means universities should spend less on senior academics and give promising younger scholars more of a chance