Recommendation 30

We asked whether our witnesses had concerns that some universities are running into funding difficulties, which could seriously impair research and innovation. Professor Boyle told us that there is an extremely difficult financial environment at present in the university sector due to a decline in income from international student fees, resulting in risks to R&D spending. He mentioned that a recent Universities UK survey found approximately 80% of respondents are considering cutting back on R&D spending within the next three or four years, while 20% have already started cutting back on early career research investment.82 DSIT told us that, together with the Department for Education, it is monitoring the situation very closely and keeping an open mind about options to ensure the financial sustainability of universities.83 80 Q 84 81 Q 84 82 Q 11 83 Q 87 18