Operating surpluses to remain 'wafer thin'

The operating surpluses of universities and colleges are set to remain wafer thin, according to the Higher Education Funding Council for England.

The analysis is based on financial forecasts prepared for the two-year period from 2001. But the 2002 forecasts do not take into account the results of the comprehensive spending review. Funding announced next year for 2003 to 2005 will be reflected in next year's forecasts.