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What are students choosing to study?pOver the decade from 1997/98 to 2006/07 there have been significant changes in thesubjects that students are studying. In particular, we see enrolments increasing insubjects allied to medicine (much of it accounted for by the shift of the funding ofnursing courses into higher education), biological sciences (primarily microbiology andpsychology), mathematical sciences, law, mass communication and documentation,historical and philosophical studies and creative arts and design (which also includesmusic, drama and film). The data for 2006/07 for the first time show an above-averagegrowth in student numbers in education and social studies over the preceding decade.It will be interesting next year to see whether this shift in interest has been sustained. Insocial studies, there has been particularly strong growth in social work, socialgeography and politics.pWe find enrolments growing more slowly than average in architecture, building andplanning, agriculture, the physical sciences and engineering and technology. But thereare recent hopeful signs for physical sciences where there has been a picking up ofenrolments in physics (but not chemistry), and even more so for mathematical scienceswhere the recovery (especially in mathematics itself) first seen three years ago hasbeen sustained. In physics it is interesting to note that fewer institutions have provisionin the subject but that these have higher average numbers of students. There have, ofcourse, been trends that are masked by simply looking at the start and end years of thedecade: the recent downward trend in computer science student numbers may leavethem still significantly above those 10 years ago but that has not prevented concernabout whether the supply of graduates can match the demand from employers.EU and international studentspIt is clear from the analysis in this report that the UK is continuing to attract studentsfrom across the world. In the 10-year period from 1997/98 to 2006/07 non-EUinternational student enrolments have more than doubled. China remains the mostsignificant provider of students to UK higher education across most levels of study.India features very strongly among taught postgraduate students, and students fromthe United States are also prominent, especially amongst undergraduate visiting andjunior year abroad students and at postgraduate levels. The decline in the number ofundergraduate students from Africa reported in last year’s Patterns appears to havebeen arrested, as enrolments at taught postgraduate level are strong. In all these areasUK higher education is, of course, facing increasing competition. The market fortransnational education is, however, expanding, and it will be interesting to see infuture Patterns whether the growth in non-EU international student numbers issustained.pEnrolments by students from other EU countries have also seen a greater rate ofgrowth in 2006/07 than that of UK-domiciled students, something which is due in part tothe enlargement of the EU. There are many students from the Republic of Ireland,especially at taught postgraduate level, although enrolments at undergraduate levelhave declined, presumably in response to the changed tuition fee system in theRepublic of Ireland.pThe number of institutions with very large numbers of students from outside the UKhas grown significantly. In 2001/02, there were just three institutions with more than5,000 students from outside the UK. By 2006/07 that had risen to 14. UK universities arebecoming increasingly international in their composition, a development that embracesEU as well as non-EU students.2

Diversity in the student populationpThe increasing diversity of the student population is something that has been seenacross successive issues of Patterns. This year’s report confirms the trend of anincreasing proportion of mature students, and a slight increase in the latest data from2006/07 in the proportion of students from minority ethnic groups and from lowersocio-economic groups. The concentration of UK-domiciled ethnic minority studentshas been maintained but not increased in the latest data, and virtually all of theseinstitutions with a high level of concentration are to be found in London.pWomen are accessing higher education significantly more than their malecounterparts. We once again see that female students are in the majority at all modesand levels. The proportion of male students enrolled in higher education institutionshas declined by at least three percentage points – and in some instances considerablymore – over the 10-year period from 1997/98 to 2006/07. This is an internationalphenomenon that in many ways reflects the differential progression and achievementlevels of boys earlier in the educational system. The considerable variations betweeninstitutions will to a significant extent reflect their different subject mix. It is onlyamong full-time postgraduates (who are dominated by non-UK students) that malestudents approach parity.Financial aspects of higher education institutionspFrom 2000/01 to 2006/07 the sector as a whole has seen an increase of more than 50per cent (not corrected for inflation) in its overall income and in most of itscomponents: only endowment and investment income shows a markedly lower rate ofgrowth, but the income from these sources has improved compared with previousyears. The significant increase in tuition fee income is, to a considerable extent,attributable to the fees of international (non-EU) students, which have doubled over theperiod and now amount to £1.7 billion. In addition public funding has been stabilisedfollowing the erosion in the unit of funding that took place in the 1990s. Across thesector as a whole the median figure of 2.3 per cent surplus was generated. As inprevious years, this continues to be well below the 3 to 5 percent level which is judgednecessary in order to ensure the sustainability of institutions to invest in theirinfrastructures and for the management of risk.pThe analysis of long-term borrowing in relation to institutional income shows a verylarge range from zero to above 80 per cent of annual income. Will the level of borrowingby the sector increase over the next few years? The increasingly diverse incomeportfolio of 21st century universities and improvements in risk management, togetherwith the greater attractiveness of universities in the eyes of financial institutions, inprinciple provides more opportunities for institutions to borrow to support significantinfrastructure projects.pThe process of differentiation of income streams amongst institutions continues. We cansee, for example, a widening spread in the importance of teaching grants for individualinstitutions, and a greater unevenness in the importance of funding councils’ grant forquality-related research (QR). On the latter, half of institutions receive less than 2 percent of the total QR grant distributed. It is interesting to note that once again the majorityof higher education institutions receive more income from research grants and contractsthan from research funding provided through the funding councils. There is also a widevariation in the dependency on health service income, though an increasing number ofinstitutions were recipients of NHS fees and grants in 2006/07 than in 2002/03.pThis issue of Patterns provides a more extensive financial analysis by reviewing someadditional aspects of university financial diversity. Universities UK’s Longer TermStrategy Group held a seminar earlier this year to explore the possible changes in thefinancial environment for higher education over the next 10 to 20 years and how thesemight influence the future business models and management of institutions. A reporton the key issues and challenges for institutions as they develop their business modelswill be published separately.Universities UK Patterns of higher education institutions in the UK: Eighth report 3

pThe final section of Patterns compares a number of financial indicators for the periodbetween 2002/03 and 2006/07, and some clear changes can be seen even over thisrelatively short period. The analysis shows that in 2006/07 50 per cent of the sector’stotal income came from funding council teaching and research grants and from tuitionfees from home and EU students. Total fee income from the latter was double that fornon-EU students. However, teaching grant income has increased less than the overallincome of higher education institutions in this period, something confirmed by the factthat there has been a decrease in the number of institutions receiving more than 50 percent of their income from the teaching grant.pResearch grants from the funding councils on the other hand have increased more thanthe overall income level. The largest relative increase in income, however, is seen in thefees from international students. Over the five-year period from 2002/03 to 2006/07,fees from international students have increased by 58 per cent, compared with anoverall increase in institutional income of 37 per cent, expressed in cash terms. Feesfrom international students have become a more significant income source for mostinstitutions than research grants from the funding councils. There has been a markedincrease in the number of institutions receiving more than 15 per cent of their totalincome from international student fees.pThe analysis provides evidence of the sector’s efforts to diversify its income sources aspart of a wider strategy to reduce its dependence on public funding. There is increasingemphasis on raising funds through endowments, a priority supported by governmentthrough its new matched funding scheme. While the income from endowments iscurrently relatively small in the overall revenue of universities, they are one element inthe efforts of higher education institutions to diversify their income streams and toincrease their sustainability.pMuch more rich material is to be found in Patterns 8, and readers will certainly findmuch of interest beyond the highlights that I have been able to point to in this briefintroduction. I would like once again to thank Professor Brian Ramsden for continuingto provide this fascinating insight into the patterns of higher education institutions inthe UK.Professor Geoffrey CrossickWarden, Goldsmiths, University of London,and Chair, Universities UK Longer Term Strategy GroupSeptember 20084

Contents6 Index of tables7 Index of charts8 Index of institutional distribution chartsSection A9 Trends in UK higher education9 Enrolments12 Enrolments by gender14 Enrolments by subject19 Subject coverage22 Changes in subject balance of full-time first-degree students22 Trends in EU and international enrolments25 Trends in incomeSection B27 Patterns of institutional diversity27 Number of institutions in the sector27 Institutional charts28 Balance of provision32 Student characteristics and outcomes38 Aspects of staffing in higher education institutions40 Financial issuesSection C51 Financial aspects of diversity51 Revenue57 Expenditure58 Capital investment in the estate59 Endowments60 Liquidity and borrowing61 Liquidity ratio63 Surpluses and deficits65 Conclusion66 Appendices67 Appendix 1: Total enrolments by subject of study, 1997/98 and 2006/0771 Appendix 2: Enrolments of students from outside the UK, by country and level of study,2006/0774 Appendix 3: Trends in sources of income to higher education institutions, 2000/01,2005/06 and 2006/0777 Appendix 4: Mergers within the higher education sector, 1994/95–2006/0779 Appendix 5: HESA cost centresUniversities UK Patterns of higher education institutions in the UK: Eighth report 5

Index of charts14 Chart 1 Percentage male students by mode and level, 1997/98 and 2006/0717 Chart 2 Percentage change in enrolments by subject area, 1997/98-2006/0722 Chart 3 Percentage of full-time first degree students in each subject area,1994/95-2006/0751 Chart 4 Major income sources of UK higher education institutions, 2006/0752 Chart 5 Teaching grant as a percentage of all income: institutional distribution,2006/0752 Chart 6 Change in teaching grant as percentage of total income, 2002/03-2006/0753 Chart 7 Histograms showing distribution of teaching grant as percentage of allincome, 2002/03 and 2006/0753 Chart 8 Research grant as a percentage of all income: institutional distribution,2006/0754 Chart 9 Histograms showing distribution of research grant as percentage of allincome, 2002/03 and 2006/0754 Chart 10 Percentage income from non-EU students’ fees, 2006/0755 Chart 11 Histograms showing distribution of non-EU student fees as percentage ofall income, 2002/03 and 2006/0756 Chart 12 Health service income (fees and grants £K) as a percentage of total income2002/03 and 2006/0757 Chart 13 Histograms showing health service income (fees and grants) received byhigher education institutions, 2002/03 and 2006/0757 Chart 14 Ratio of payroll costs to total income, 2006/0758 Chart 15 Histograms showing the ratio of payroll costs to all income, 2002/03 and2006/0758 Chart 16 Histograms showing the percentage expenditure on repairs andmaintenance, 2002/03 and 2006/0759 Chart 17 Percentage of non-residential accommodation classified as new orrefurbished, 2001/0259 Chart 18 Percentage of non-residential accommodation classified as new orrefurbished, 2005/0660 Chart 19 Histogram showing institutions’ endowments assets, £K, 2002/0360 Chart 20 Histogram showing institutions’ endowments assets, £K, 2006/0761 Chart 21 Days of net liquid assets to total expenditure less depreciation, 2002/0361 Chart 22 Days of net liquid assets to total expenditure less depreciation, 2006/0762 Chart 23 Long-term borrowing as a percentage of total income, 2006/0762 Chart 24 Histograms showing borrowing as a percentage of income, 2002/03 and2006/0763 Chart 25 Histograms showing institutional distribution of absolute borrowing (£K),2002/03 and 2006/0763 Chart 26 Increase/decrease in interest payments as percentage of income, 2002/03to 2006/0764 Chart 27 Average percentage ratio of historical surplus/(deficit) after tax to totalincome, 2002/03 to 2006/0765 Chart 28 Percentage return on net assets, 2002/03-2006/07Universities UKPatterns of higher education institutions in the UK: Eighth report7

Index of institutional distribution charts28 Institutional chart 1: Percentage of students following postgraduate programmes,2006/0729 Institutional chart 2: Absolute numbers of postgraduate enrolments, 2006/0729 Institutional chart 3: Absolute numbers of undergraduate enrolments, 2006/0730 Institutional chart 4: Percentage of enrolments in undergraduate programmes notdirectly leading to first degrees, 2006/0730 Institutional chart 5: Percentage of part-time enrolments, 2006/0731 Institutional chart 6: Enrolments of all non-UK-domiciled students, 2006/0731 Institutional chart 7: Enrolments of international (non-EU)-domiciled students, 2006/0732 Institutional chart 8: Enrolments of EU (excluding UK)-domiciled students, 2006/0733 Institutional chart 9: Percentage of mature full-time undergraduates, 2006/0733 Institutional chart 10: Percentage of male students, 2006/0734 Institutional chart 11: Percentage of UK-domiciled first-year students from ethnicminority groups, 2006/0735 Institutional chart 12: Percentage of young full-time first-degree entrants from nationalstatistics socio-economic classification classes 4, 5, 6 and 7,2006/0736 Institutional chart 13: Percentage of young full-time first-degree entrants from lowparticipation neighbourhoods, 2006/0736 Institutional chart 14: Average tariff points of entrants to full-time undergraduatecourses, 2006/0737 Institutional chart 15: Percentage of first-class degrees awarded, 2006/0737 Institutional chart 16: Percentage of first and upper second class degrees awarded,2006/0738 Institutional chart 17: Percentage of first degree full-time graduates not unemployed,2005/0639 Institutional chart 18: Number of cost centres within which staff are employed, 2006/0739 Institutional chart 19: Percentage of female academic staff, 2006/0740 Institutional chart 20: Percentage of ethnic minorities among academic staff, 2006/0741 Institutional chart 21: Surplus/deficit as a percentage of income, 2006/0741 Institutional chart 22: Days ratio of net liquid assets to total expenditure, 2006/0742 Institutional chart 23: Days ratio of total general funds to total expenditure, 2006/0742 Institutional chart 24: The security index, 2006/0743 Institutional chart 25: Percentage ratio of total long-term borrowings to total income,2006/0744 Institutional chart 26: Funding council income as a percentage of all income, 2006/0744 Institutional chart 27: Funding of research through the dual support system (£K), 2006/0745 Institutional chart 28: Funding of research through the dual support system as apercentage of all income, 2006/0746 Institutional chart 29: Research grants and contracts as a percentage of funding councilresearch grant, 2006/0746 Institutional chart 30: Income for other services rendered (£K), 2006/0747 Institutional chart 31: Income from international (non-EU) student fees (£K), 2006/0748 Institutional chart 32: Administrative costs per full-time equivalent student (£), 2005/0648 Institutional chart 33: Academic departmental costs per full-time equivalent student,excluding academic staff (£), 2005/0649 Institutional chart 34: Total academic services expenditure per full-time equivalentstudent (£), 2005/0649 Institutional chart 35: Premises expenditure per full-time equivalent student (£), 2005/068

Section ATrends in UK higher education1 This section sets out some of the major trends in higher education in the UnitedKingdom (UK) during the last 10 years from 1997/98 to 2006/07, drawing on datapublished by the Higher Education Statistics Agency (HESA). 1Table 1Enrolments in highereducation institutionsby country on highereducation (HE) andfurther education (FE)programmes,1997/98–2006/07Enrolments2 Before looking at enrolments on higher education programmes, it should be noted thatthere is a small percentage of students in higher education institutions who arefollowing programmes at further education level. Table 1 shows the figures forenrolments at higher education and further education levels in 2006/07 andcomparisons with 1996/97 and 2005/06.United Kingdom England Wales Scotland Northern Ireland1997/98 Total all students 1,842,332 1,537,360 94,381 168,184 42,407Total HE students 1,800,064 1,496,889 92,939 167,829 42,407Total FE students 42,268 40,471 1,442 355 0FE students as % of total 2.3% 2.6% 1.5% 0.2% 0.0%2005/06 Total all students 2,459,895 2,051,625 137,760 215,880 54,625Total HE students 2,336,110 1,936,420 129,230 215,830 54,625Total FE students 123,785 115,205 8,530 50 0FE students as % of total 5.0% 5.6% 6.2% 0.0% 0.0%2006/07 Total all students 2,478,425 2,060,400 144,140 223,560 50,325Total HE students 2,362,815 1,957,190 131,765 223,530 50,325Total FE students 115,610 103,210 12,375 25 -FE students as % of total 4.7% 5.0% 8.6% 0.0% 0.0%HE percentage change 1997/98 to 2006/07 30% 29% 39% 29% 29%HE percentage change 2005/06 to 2006/07 1% 1% 2% 4% -8%FE percentage change 1997/98 to 2006/07 174% 155% 758% -93% n/aFE percentage change 2005/06 to 2006/07 -7% -10% 45% -50% n/a1 Almost all the statisticalinformation in this report isdrawn from HESA publications:in particular, the CD-Rompublications HE Finance Plusand HE Planning Plus, and alsothe Higher EducationManagement Statistics atinstitutional level and thevolumes of Students andResources of Higher EducationInstitutions. The presentation offigures within the tablesconforms to HESA’sconventions for the year inquestion: for example,numbers for the year 2006/07are rounded to the nearest five.All HESA publications arepublished by the HigherEducation Statistics AgencyLimited, 95 Promenade,Cheltenham, GL50 1HZ,telephone +44 (0) 12 4225 5577:further details are available athttp://www.hesa.ac.uk/products/pubs/home.htm2 For more information, seehttp://www.hesa.ac.uk/holisdocs/pubinfo/student/changes.htm3 As was noted in previous Patterns report, the growth in the numbers and proportion ofstudents following further education programmes in higher education institutions inEngland and Wales (in which it is exclusively concentrated) over the last 10 years arosepartly because of the incorporation of former further education institutions within asmall number of higher education institutions, and partly from a data definitionalchange adopted by HESA in consultation with the UK education departments andfunding councils. This change to the definition of the standard population, introduced in2000/2001 and used in analysis by HESA, involves counting more students followingshort courses. It is believed to be a better way of capturing the totality of provisionwithin higher education institutions. 24 As we pointed out in Patterns 7, the increase in enrolments in further education coursesat higher education institutions is now seen to have been reversed in England, althoughthere is still some growth in Wales.5 Enrolments of higher education students have increased by 30 per cent overall over the10-year period 1997/98–2006/07, but by a greater percentage in Wales. Last yearhowever, enrolments in Northern Ireland declined.6 Changes in data definitions have also had an impact on the counting of higher educationstudents across years. If consistent definitions are used, the growth in higher educationenrolments overall amounts to approximately 27 per cent over the period 1997/98–2006/07.Universities UKPatterns of higher education institutions in the UK: Eighth report9

Table 2Enrolments in highereducation level courseswithin higher educationand further educationinstitutions, 2005/067 Although this report analyses students enrolled within publicly-funded highereducation institutions, it does not generally cover students following courses at highereducation level in further education institutions or in privately funded higher educationinstitutions. 38 Consequently, a significant number of students following higher educationprogrammes in Scotland and Northern Ireland are excluded from this analysis, sincethere is a far higher proportion of students within those countries who begin orundertake their higher education experience within further education colleges, as isillustrated in table 2.Country Higher education Further educationinstitutions institutions All institutionsTotal student % in FEFull-time Part-time Full-time Part-time Full-time Part-time enrolments institutionsEngland 1,173,550 762,870 31,425 90,725 1,204,975 853,595 2,058,570 5.9%Wales 74,990 54,245 380 705 75,370 54,950 130,320 0.8%Scotland 148,825 67,005 25,830 24,055 174,655 91,060 265,715 18.8%Northern Ireland 35,675 18,950 3,990 8,815 39,665 27,765 67,430 19.0%United Kingdom 1,433,040 903,070 61,625 124,300 1,494,665 1,027,370 2,522,035 7.4%3 The exception is the Universityof Buckingham, which hasbeen included in HESA datasince 2004/05. There is also noanalysis of students followingcourses in privately fundedhigher education institutions,because there is currently noprocess for collecting dataconsistently from thoseinstitutions.9 This table is not available for 2006/07 but, as for last year, the clear trend in theprovision of higher education courses is that a smaller proportion is being provideddirectly in further education colleges. Overall, the percentage of higher educationstudents being taught in further education colleges across the UK as a whole hasreduced from over 9 per cent in 2001/02 to 7.4 per cent in 2005/06. The absolutenumbers of higher education students in further education institutions declined overallby 3 per cent in the last year, and this reduction is consistent in all countries of the UK,with the exception of Wales, which has seen a small increase from a very low base.10 Overall, across the UK, 12.1 per cent of part-time higher education enrolments are infurther education colleges; in Scotland, the figure is 26 per cent (compared with 30 percent in 2004/05). However, the definitions of full-time study in further educationcolleges varies across the four countries of the UK. The statistics would be more robustif common definitions were adopted.11 Registrations on programmes at further education level within higher educationinstitutions and on programmes at higher education level within further educationinstitutions are excluded from the further analyses within this report, whichconcentrates on higher education enrolments at higher education institutions.12 Table 3 shows enrolments at undergraduate and postgraduate level, by UK country ofinstitution and by mode of study in 2006/07, comparing them with 1997/98 and 2005/06.10

Table 3Enrolments by modeand level, 1997/98,2005/06 and 2006/07UnitedNorthernYear Level Mode of study Kingdom England Wales Scotland Ireland1997/98 Postgraduate Full-time 143,521 117,577 7,151 14,909 3,884Part-time 243,480 206,069 9,728 21,965 5,718Total 387,001 323,646 16,879 36,874 9,602Undergraduate Full-time 1,022,606 826,386 58,281 113,428 24,511Part-time 390,457 346,857 17,779 17,527 8,294Total 1,413,063 1,173,243 76,060 130,955 32,805All students Full-time 1,166,127 943,963 65,432 128,337 28,395Part-time 633,937 552,926 27,507 39,492 14,012Total 1,800,064 1,496,889 92,939 167,829 42,407PercentagePostgraduate 21.5% 21.6% 18.2% 22.0% 22.6%2005/06 Postgraduate Full-time 234,220 196,735 10,210 23,290 3,990Part-time 311,150 257,705 15,065 30,695 7,680Total 545,370 454,440 25,275 53,985 11,670Undergraduate Full-time 1,198,820 976,815 64,780 125,535 31,690Part-time 591,925 505,165 39,175 36,310 11,270Total 1,790,745 1,481,980 103,955 161,845 42,960All students Full-time 1,433,040 1,173,550 74,990 148,825 35,680Part-time 903,075 762,870 54,240 67,005 18,950Total 2,336,115 1,936,420 129,230 215,830 54,630PercentagePostgraduate 23.3% 23.5% 19.6% 25.0% 21.4%2006/07 Postgraduate Full-time 243,070 201,830 11,175 26,680 3,390Part-time 316,320 260,605 16,490 32,350 6,880Total 559,390 462,430 27,665 59,025 10,270Undergraduate Full-time 1,208,645 985,810 66,005 126,115 30,720Part-time 594,780 508,955 38,095 38,390 9,335Total 1,803,425 1,494,760 104,100 164,505 40,060All students Full-time 1,451,715 1,187,640 77,180 152,795 34,110Part-time 911,100 769,560 54,585 70,740 16,215Total 2,362,815 1,957,190 131,765 223,530 50,325PercentagePostgraduate 23.7% 23.6% 21.0% 26.4% 20.4%13 The change over time in these enrolment statistics is summarised in table 4.Universities UKPatterns of higher education institutions in the UK: Eighth report11

Table 4Overall change bymode and level,1997/98–2006/07UnitedNorthernKingdom England Wales Scotland IrelandOverall changespercentage change in enrolments of postgraduates, 1997/98 to 2006/07 44.5% 42.9% 63.9% 60.1% 7.0%percentage change in enrolments of postgraduates, 2005/06 to 2006/07 2.6% 1.8% 9.5% 9.3% -12.0%percentage change in enrolments of undergraduates, 1997/98 to 2006/07 27.6% 27.4% 36.9% 25.6% 22.1%percentage change in enrolments of undergraduates, 2005/06 to 2006/07 0.7% 0.9% 0.1% 1.6% -6.8%percentage change in all students, 1997/98 to 2006/07 31.3% 30.8% 41.8% 33.2% 18.7%percentage change in all students, 2005/06 to 2006/07 1.1% 1.1% 2.0% 3.6% -7.9%Change in part-time numberspercentage change in enrolments of part-time postgraduates, 1997/98 to 2006/07 29.9% 26.5% 69.5% 47.3% 20.3%percentage change in enrolments of part-time postgraduates, 2005/06 to 2006/07 1.7% 1.1% 9.5% 5.4% -10.4%percentage change in enrolments of part-time undergraduates, 1997/98 to 2006/07 52.3% 46.7% 114.3% 119.0% 12.6%percentage change in enrolments of part-time undergraduates, 2005/06 to 2006/07 0.5% 0.8% -2.8% 5.7% -17.2%Change in full-time numberspercentage change in enrolments of full-time postgraduates, 1997/98 to 2006/07 69.4% 71.7% 56.3% 79.0% -12.7%percentage change in enrolments of full-time postgraduates, 2005/06 to 2006/07 3.8% 2.6% 9.5% 14.6% -15.0%percentage change in enrolments of full-time undergraduates, 1997/98 to 2006/07 18.2% 19.3% 13.3% 11.2% 25.3%percentage change in enrolments of full-time undergraduates, 2005/06 to 2006/07 0.8% 0.9% 1.9% 0.5% -3.1%14 Overall, there has been an increase of 31 per cent in all student enrolments from1997/98 to 2006/07.15 This compares to a corresponding increase of 45 per cent at postgraduate level and 28per cent at undergraduate level over the same period. The increase is rather lessmarked at both levels than was the case in the 10 years up to 2005/06, as reported inPatterns 7. Student enrolments in Wales, however, have increased markedly over the10-year period, 1997/98–2006/07.16 When the figures are disaggregated by mode, it can be seen that there is a noticeablygreater increase in the number of part-time enrolments than full-time enrolments atundergraduate level, and it is particularly in this area that the increases in Wales arerecorded. However, the increase in the number of full-time postgraduates significantlyexceeds that of part-time postgraduates.17 While a significant proportion of the growth in part-time undergraduates can beattributed to a structural cause (the mainstreaming of the former continuing educationcourses in the pre-1992 universities in 1994/95), there is in fact a generally greaterincrease across the whole of the period in part-time enrolments as compared with fulltimeenrolments. Again it is important to take into account the redefinition of the HESAstandard population, which reports greater numbers following short part-timecourses. This has had a major effect on the year-to-year shift since the year 1999/2000.18 The percentage change in enrolments at all levels from 2005/06 to 2006/07 has beensmall, although the reduction in enrolments of full-time students in Northern Ireland isworth noting.12Enrolments by gender19 The last two Patterns reports provided information about the trend in studentenrolments in higher education institutions by gender, and this information is nowupdated. Table 5 looks at enrolments by level and gender for 2006/07.

Table 5Enrolments by leveland gender, 2006/07PercentageLevel and mode of study Total Female Male maleFull-time studentsPostgraduate 243,070 123,065 120,005 49.4%First degree 1,086,080 590,825 495,255 45.6%Other undergraduate 122,570 83,555 39,010 31.8%Total full-time 1,451,720 797,445 654,270 45.1%Part-time studentsPostgraduate 316,320 175,715 140,605 44.5%First degree 201,145 121,990 79,160 39.4%Other undergraduate 393,630 257,270 136,360 34.6%Total part-time 911,095 554,975 356,120 39.1%20 Female students outnumber males at all modes and levels, and it is only among fulltimepostgraduates (which are dominated by non-UK students) that male studentsapproach parity.21 Comparative figures for the previous academic year – 2005/06 – are set out in table 6.There is very little change, although the proportion of males has slightly increasedamong part-time undergraduate students.Table 6Enrolments by leveland gender, 2005/06PercentageLevel and mode of study Total Female Male maleFull-time studentsPostgraduate 234,220 118,675 115,550 49.3%First degree 1,073,775 582,950 490,825 45.7%Other undergraduate 125,040 85,675 39,365 31.5%Total full-time 1,433,035 787,300 645,740 45.1%Part-time studentsPostgraduate 311,150 172,640 138,505 44.5%First degree 205,080 125,130 79,950 39.0%Other undergraduate 386,840 254,105 132,735 34.3%Total part-time 903,070 551,875 351,190 38.9%22 Finally, in order to assess the long-term trend, table 7 shows the situation in 1997/98.Table 7Enrolments by leveland gender, 1997/98PercentageLevel and mode of study Total Female Male maleFull-time studentsPostgraduate 143,521 66,947 76,574 53.4%First degree 899,719 464,535 435,184 48.4%Other undergraduate 122,887 74,278 48,609 39.6%Total full-time 1,166,127 605,760 560,367 48.1%Part-time studentsPostgraduate 243,480 118,653 124,827 51.3%First degree 89,670 51,734 37,936 42.3%Other undergraduate 300,787 179,191 121,596 40.4%Total part-time 633,937 349,578 284,359 44.9%Universities UKPatterns of higher education institutions in the UK: Eighth report13

23 A comparison of tables 5 and 7 shows that at all modes and levels, the proportion offemale students enrolled in higher education institutions has increased by at leastthree percentage points – and in some instances considerably more – over the 10-yearperiod 1997/98–2006/07. Chart 1 illustrates the changes.Chart 1Percentagemale studentsby mode andlevel, 1997/98and 2006/07p1997/98p2006/0760%50%40%30%20%10%0%Full-time otherUGFull-time firstdegreePart-time otherUGPart-time firstdegreeFull-time PGPart-time PGEnrolments by subjectMethodological considerations24 Previous Patterns reports have described, on a time series basis, the trends in studentenrolments by subject, and in each of the major subject area groupings. As was thecase last year, this exercise involves two complications.25 The first is that, in 2002/03, HESA introduced a new subject classification, which had theeffect of aligning its subject codes with those used by the Universities and CollegesAdmissions Service (UCAS). In the process, a precise correspondence with the codesused in previous years was lost. At the aggregated subject area level, thecategorisations are very close, with one exception: introducing the new subject coding,together with a new (and improved) methodology for calculating principal subjects ofstudy, had the effect of significantly reducing the ‘combined’ subject area. Noadjustments will be made for this change. However, it should be taken into account thatthe precise components of each subject area are somewhat different in 2006/07compared to the equivalent components before 2002/03.26 The second complication is more significant. Historically, the Open University, which isthe largest provider of undergraduate higher education, reported all of its studentswithin the ‘combined’ subject area. In 2002/03 for the first time, many of the university’sstudents were reported according to the main subject of the qualification for which theywere enrolled. It follows that, both at individual subject level, and also at the level ofaggregated subject areas, there has been a major shift from the ‘combined’ subjectarea into the other subjects and subject areas. The new position gives a better pictureof the overall enrolment by subject; but the time series comparison with previous yearsis distorted considerably. We described the effect of this change in Patterns 7, which setout a new baseline for timescale comparisons.27 Consequently, table 8 shows the absolute and relative enrolments in each of the 19conventional subject areas in the most recent two years, and the percentage change.The figures include all students, irrespective of level, mode or domicile.14

Table 8Enrolments by subjectarea, 2005/06 and2006/0728 In table 9, the figures for 2006/07 are re-presented alongside the 1997/98 figuresadjusted according to the new subject definitions to enable comparisons, except thatthe ‘combined’ subject area (which showed a 64 per cent reduction primarily as a resultof the redistribution of the Open University students) is shown below the sub-total ofother subject areas. In this way it is possible to identify a meaningful comparativepercentage change for the sum of the other subject areas over the period in question.PercentageStudent Student change,enrolments, Percentage enrolments, Percentage 2005/06 toSubject area 2005/06 of total 2006/07 of total 2006/07Medicine and dentistry 59,585 2.6% 63,245 2.7% 6.1%Subjects allied to medicine 309,405 13.2% 300,900 12.7% -2.7%Biological sciences 155,220 6.6% 164,215 6.9% 5.8%Veterinary science 4,465 0.2% 4,875 0.2% 9.2%Agriculture and related subjects 17,275 0.7% 16,085 0.7% -6.9%Physical sciences 82,740 3.5% 83,905 3.6% 1.4%Mathematical sciences 32,425 1.4% 33,790 1.4% 4.2%Computer science 120,150 5.1% 106,910 4.5% -11.0%Engineering and technology 136,695 5.9% 140,580 5.9% 2.8%Architecture, building and planning 56,445 2.4% 60,525 2.6% 7.2%Social studies 201,075 8.6% 201,720 8.5% 0.3%Law 89,580 3.8% 90,845 3.8% 1.4%Business and administrative studies 304,405 13.0% 310,255 13.1% 1.9%Mass communications and documentation 47,805 2.0% 47,935 2.0% 0.3%Languages 139,190 6.0% 139,715 5.9% 0.4%Historical and philosophical studies 101,445 4.3% 103,215 4.4% 1.7%Creative arts and design 156,180 6.7% 160,525 6.8% 2.8%Education 207,705 8.9% 216,330 9.2% 4.2%Combined 114,315 4.9% 117,245 5.0% 2.6%All subjects 2,336,105 100% 2,362,815 100% 1.1%Universities UKPatterns of higher education institutions in the UK: Eighth report15

Chart 2140%Percentage change inenrolments by subject 120%area, 1997/98-2006/07100%80%60%40%20%0%Mass communications anddocumentationSubjects allied to medicineCreative arts and designBiological sciencesHistorical and philosophicalstudiesSocial studiesEducationMathematical sciencesLawAll subjects averageLanguagesMedicine and dentistryVeterinary sciencesBusiness andadministrative studiesComputer scienceArchitecture, building andplanningPhysical sciencesEngineering and technologyAgriculture and relatedsubjects4 We are looking here at theprincipal subject ofqualification aim, as identifiedby HESA.5 A full explanation of thechanges in the subjectclassification is available at:http://www.hesa.ac.uk/jacs/jacs.htm31 There have been above average increases in enrolments since 1997/98 in subjectsallied to medicine, biological sciences, mathematical sciences, law, masscommunication and documentation, historical and philosophical studies, and creativearts and design. This year, for the first time, education and social studies are also seento show an above average increase.32 Changes in enrolments in languages, veterinary science and medicine are broadly inline with the average increase.33 While no subject area has seen a significant absolute reduction in student numbersfrom 1997/98 to 2006/07, there have been only low levels of increase in enrolments inarchitecture, building and planning, engineering and technology, the physical sciences,agriculture and business and administrative studies (the last of which has been one ofthe most popular subject areas in recent years).34 This simple analysis by broad subject group however does not do full justice to the verysignificant shifts in emphasis in higher education courses during the 10 years underinvestigation. It is important to consider the specific subjects 4 being studied in orderfully to assess the nature of the changes.35 As part of this analysis, it is necessary to be aware of the significant changes that tookplace in the categorisation of subjects in 2002/03. Examples of these changes include:ppsychology is now classified as a single subject, whereas it was previously identified astwo separate subjects, depending on whether its major orientation was scientific orsocial;pphysical geography is now combined with the former environmental sciences subject;pelectronic engineering and electrical engineering have merged into a single subject‘electronic and electrical engineering’;psports science is identified as a subject in its own right, having previously been splitbetween other related subjects;ppharmacy and pharmacology have merged;phistory of art is no longer identifiable, having been subsumed within history by topic. 5Universities UKPatterns of higher education institutions in the UK: Eighth report17

6 Under the new subjectclassification it is no longerpossible to distinguishbetween pharmacy andpharmacology.7 Psychology is now classifiedas a single subject includingboth scientific and socialpsychologies: the figures havebeen adjusted to recognisethis.36 The table in Appendix 1 sets out the numbers of students following individual subjectsas their main qualification aim in each of the years 1997/98 and 2006/07, subject to thecaveats listed above. This table is limited to subjects that can be clearly identified, andgenerally ignores ‘balanced combinations’, ‘broadly-based programmes’, and so on.The table does not distinguish by mode, level or intensity of study: it simply reports onthe numbers of enrolments within each subject.37 The populations and definitions used in Appendix 1 and in the following analysis arebased on those in the relevant HESA publications. A more detailed analysis shows that:pEnrolments within medicine and dentistry have risen by 51 per cent, in line with theoverall increase of 52 per cent. Changes in the structure of clinical degrees have led toa shift from pre-clinical to clinical studies.pWithin subjects allied to medicine, nursing has seen an increase of over 82 per cent.This is largely a product of the shift of funding of nursing courses into the highereducation sector. Significant increases are also reported in pharmacy andpharmacology 6 (81 per cent), nutrition (205 per cent), aural and oral sciences (464 percent though from a low base), anatomy, physiology and pathology (212 per cent) andmedical technology (148 per cent).pWithin biological sciences most subjects show a below average increase in studentnumbers, except microbiology, which shows an increase of 87 per cent, and psychology,which shows a 99 per cent increase 7 . Botany shows an actual reduction in enrolmentsof 18 per cent.pThere has been an increase in enrolments in veterinary science of 46 per cent, slightlybelow the average.pReclassifications within agriculture and related subjects make time seriescomparisons impossible at the detailed subject level for this subject area.pWithin the physical sciences area, chemistry has seen a reduction of 11 per cent andphysics an increase of only 7 per cent (compared with an actual reduction reported inthe previous 10-year comparison). However, there have been large increases inastronomy (176 per cent) and ocean sciences (75 per cent). Geology shows a slightlybelow average increase (47 per cent).pSubjects within the area of mathematical sciences generally show increases in theirrecorded student populations, thus confirming a trend that was tentatively identifiedthree years ago. It can be argued, however, that these increases are partly a result ofthe changing definitions and apportionment algorithms adopted by HESA over theperiod. For the third time since these figures were first published, mathematics itselfagain shows an above average increase in enrolments (70 per cent). Statistics andoperational research show modest absolute increases.pAfter adjusting for new definitions, we see a rise of 37 per cent in enrolments incomputer science, significantly below the norm, after several years in which it showedabove average increases over a 10-year period, for example in the 10-year period1996/97–2005/06.pEnrolments in most subjects in the engineering and technology subject area havedecreased, or show below average increases. There have, for example, been significantabsolute reductions in enrolments in minerals technology, production engineering andpolymers and textiles. Electronic and electrical engineering shows an increase inenrolments of only 11 per cent, general engineering 27 per cent and civil engineering28 per cent, compared with the mean of 52 per cent. Only aerospace engineering hasshown a significant increase in enrolments (91 per cent) over the 10-year period.pWithin the architecture, building and planning area, enrolments in architecture haveincreased by 51 per cent, which is in line with the average rise, but it is offset by a belowaverage increase in the numbers of students following courses in building (28 per cent)and planning (22 per cent).18

pMost aspects of social studies report an improved situation compared with earlieryears, with percentage increases in enrolments generally at or above the average level.Notable increases are found in social work (117 per cent), human and social geography(69 per cent), and politics (85 per cent).pThere has been a 58 per cent increase in enrolments in law, slightly above average forthe sector as a whole.pThe business and administrative studies subject area – as now reclassified – presentssome difficulties in analysis over time. The combined areas of business andmanagement studies show an average increase of 50 per cent, although this mayoverstate the position, as some other aspects of management are not separatelyrecorded now. While accounting shows an increase of only 33 per cent, enrolments infinance have more doubled: marketing also shows an above average rise.pWithin the area of mass communications and documentation, media studies shows anincrease of 296 per cent between 1997/98 and 2006/07 while journalism has increasedby 48 per cent. On the other hand, information services, including librarianship, onlyshows an increase in enrolments of one per cent.pThe languages area has seen some significant reclassifications of subjects, andcomparisons are difficult. Major increases are seen for English studies (96 per cent),and French studies (86 per cent), the latter being a reversal of an earlier relativedecline, although derived partly perhaps from a transfer from the combined group.Among less popular languages, Italian and Spanish continue to show very largepercentage increases (over 100 per cent). Celtic studies and classical studies also showmarked increases.pAll subjects within the areas of historical and philosophical studies continue to berelatively buoyant in terms of overall enrolments, with the exception of history itself,which is now showing an increase slightly below the average. Theology and religiousstudies have shown an increase of 72 per cent, while archaeology and philosophy haveincreased beyond the average: indeed, enrolments in philosophy have almost doubled.pCreative arts and design subjects also continue to show a significant increase (71 percent overall): enrolments in music have almost doubled, those in drama have morethan doubled, and there is an increase of 296 per cent in cinematics.pThe rise in enrolments in education is, for the first time in many years, above theaverage increase across all subjects. Teacher training programmes however show abelow average increase.38 In summary, there have been major changes in the subject enrolments of students onhigher education courses in the UK between 1997/98 and 2006/07.Subject coverage39 This section considers the spread of teaching provision throughout the UK asrepresented by the numbers of institutions teaching specific subjects.40 Some earlier Patterns reports suggested that there was little correlation between thenumber of students studying a subject nationally and the number of institutions whichmade provision for this subject as a ‘principal subject of qualification aim’. As aconsequence, the average population of subjects within institutions varied widely. Thefifth and sixth Patterns reports suggested that the number of institutions teachingparticular subjects was coming more closely into line with movements in studentnumbers. The seventh Patterns report did not include this particular analysis, becauseits focus was on strategic and vulnerable subjects.Universities UKPatterns of higher education institutions in the UK: Eighth report19

41 This year our analysis resumes. It follows broadly the approach in Patterns 6. Table 10shows the number of institutions teaching a subject to more than 20 students, in orderto eliminate data deficiencies, and shows all subjects which, in the most recent year,attracted more than 12,000 students across all of the higher education institutions inthe United Kingdom. No distinction is made between modes, levels or domicile ofstudents in this analysis. The table therefore shows comparative information for1997/98 and for 2006/07. In total there were 174 higher education institutions in1997/98 and 169 in 2006/07.42 Analysis of changes in subject coverage is of course complicated by the new subjectclassification’s changed definitions, referred to above. As far as possible, the figures intable 10 have been adjusted to make it possible to compare from year to year, but thereis not always a precise correspondence.20

Table 10Numbers of institutions makingprovision for teaching of majorsubjects, 1997/98 and 2006/07Studentnumbers1997/98 2006/07 1997/98 to 2006/07Number ofhighereducationinstitutionsAveragenumber ofstudentsper highereducationinstitutionStudentnumbersNumber ofhighereducationinstitutionsAveragenumber ofstudentsper highereducationinstitutionpercentagechange instudentnumbersPercentagechange innumber ofhighereducationinstitutionsteaching thesubjectpercentagechange inaveragenumber ofstudentsper highereducationinstitutionSubjectBusiness and management studies 133,925 120 1,116 200,330 134 1,495 50% 12% 34%Nursing 100,640 85 1,184 183,580 85 2,160 82% 0% 82%Computer science 77,987 115 678 105,625 121 873 35% 5% 29%Training teachers 66,369 95 699 94,340 109 866 42% 15% 24%Academic studies in education 27,339 98 279 87,210 111 786 219% 13% 182%Law 57,441 86 668 86,010 101 852 50% 17% 27%Psychology 36,483 100 365 72,475 113 641 99% 13% 76%English studies 30,747 97 317 60,310 116 520 96% 20% 64%Design studies 42,819 74 579 59,345 86 690 39% 16% 19%Social work 27,263 107 255 59,190 100 592 117% -7% 132%Medicine 36,611 32 1,144 55,475 43 1,290 52% 34% 13%History 37,205 108 344 53,510 108 495 44% 0% 44%Sociology 22,816 102 224 32,845 104 316 44% 2% 41%Politics 17,703 78 227 32,760 88 372 85% 13% 64%Electronic and electrical engineering 29,219 95 308 32,345 92 352 11% -3% 14%Accounting 23,508 71 331 31,310 90 348 33% 27% 5%Economics 21,789 80 272 30,225 74 408 39% -8% 50%Mathematics 16,801 86 195 28,590 86 332 70% 0% 70%Biology 23,100 91 254 27,580 99 279 19% 9% 10%Media studies 6,873 38 181 27,225 102 267 296% 168% 48%Music 13,377 68 197 25,560 93 275 91% 37% 40%Drama and Dance 11,172 67 167 24,560 97 253 120% 45% 52%Building 18,696 51 367 23,990 58 414 28% 14% 13%Marketing 13,119 59 222 23,895 90 266 82% 53% 19%Mechanical engineering 21,983 83 265 22,600 81 279 3% -2% 5%Civil engineering 17,319 66 262 22,115 63 351 28% -5% 34%Pharmacology, toxicology and pharmacy 11,959 41 292 21,675 52 417 81% 27% 43%General engineering 17,027 72 236 21,665 77 281 27% 7% 19%Finance 9,199 52 177 20,690 76 272 125% 46% 54%Physical and terrestrial geographicaland environmental sciences 23,839 102 234 20,530 82 250 -14% -20% 7%Architecture 13,406 43 312 20,295 57 356 51% 33% 14%Fine art 15,161 69 220 20,185 85 237 33% 23% 8%Chemistry 22,010 80 275 19,585 70 280 -11% -13% 2%Theology and religious studies 10,009 53 189 17,255 51 338 72% -4% 79%Anatomy, physiology and pathology 5,431 36 151 16,930 64 265 212% 78% 75%Cinematics and photography 4,057 33 123 16,055 74 217 296% 124% 76%Physics 13,982 64 218 14,935 51 293 7% -20% 34%Human and social geography 7,894 56 141 13,325 71 188 69% 27% 33%French studies 6,994 59 119 12,975 66 197 86% 12% 66%Social policy 8,600 54 159 12,870 71 181 50% 31% 14%Planning 9,900 41 241 12,080 41 295 22% 0% 22%Universities UKPatterns of higher education institutions in the UK: Eighth report21

43 There is now a fairly close correlation between the movements in student numbers andthe numbers of institutions making provision for particular subjects. There are howevera few notable outliers to this: for example, both social work and theology showsignificant increases in student enrolments, alongside a reduction in the numbers ofinstitutions making such provision.Chart 3Percentage of fulltimefirst-degreestudents in eachsubject area,1994/95– 2006/07p1994/95p1995/96p1996/97p1997/98p1998/99p1999/00p2000/01p2001/02p2002/03p2003/04p2004/05p2005/06p2006/07Changes in subject balance of full-time first-degree students44 Longer-term trends in the enrolment of full-time first degree students may provide aninteresting commentary on the trends presented above. These can be tracked withsome degree of confidence over the 12 years since the data for higher educationinstitutions throughout the UK was first collected on a consistent basis.45 Chart 3 shows the trends in each subject group, continuing the series that hasappeared in previous Patterns reports.16%14%12%10%8%6%4%2%0%Medicine and dentistrySubjects allied to medicineBiological sciencesVeterinary scienceAgriculture and relatedsubjectsPhysical sciencesMathematical sciencesComputer scienceEngineering and technologyArchitecture, building andplanningSocial studiesLawBusiness and administrativestudiesMass communications anddocumentationLanguagesHistorical and philosophicalstudiesCreative arts and designEducationCombined46 In considering chart 3, it is important to remember that there has been a majormovement away from the ‘combined’ subject group in the last four years from 2002/03,for purely structural reasons. Allowing for this, the graph shows a consistent reductionin enrolments in physical sciences (marginally reversed in 2005/06 and 2006/07) and inengineering and technology. As noted previously, the reduction in enrolments inlanguages appears to have been arrested and indeed reversed. However, this may bepartly because of the reassignment of courses from the ‘combined’ subject group. Thesame may be true of mathematical sciences.47 Computer science continues to experience a negative trend in enrolments, as doagricultural subjects.48 On the other hand, there has been a consistent increase in enrolments in subjectsallied to medicine, biological sciences (primarily because of the effect of increasingenrolments in psychology) and creative arts and design. Education appears also toshow a modest proportional increase.8 In this report ‘international’refers to non-EU domiciledstudents and ‘EU’ refers toEU (excluding the UK)domiciled students.Trends in EU and international enrolments49 Turning now to the domicile of students, table 11 shows absolute and relative numbersof students from the UK, other EU countries and countries from outside the EU(international) 8 , for 2006/07, with comparisons for 2005/06. It also provides the changein student numbers over the 10-year period 1997/98–2006/07.22

Table 11Enrolments of studentsby domicile, 1997/98,2005/06 and 2006/07Year Domicile Student numbers percentage of total1997/98 UK 1,586,800 88.2%EU 96,424 5.4%International 116,840 6.5%All 1,800,064 100.0%2005/06 UK 2,006,035 85.9%EU 106,225 4.5%International 223,855 9.6%All 2,336,110 100.0%2006/07 UK 2,011,345 85.1%EU 112,260 4.8%International 239,210 10.1%All 2,362,815 100.0%Percentage change 1997/98 to 2006/07 UK 27%EU 16%International 105%All 31%Percentage change 2005/06 to 2006/07 UK 0%EU 6%International 7%All 1%50 From 1997/98 to 2006/07, there has been a considerably greater increase in the numberof students from non-EU countries than from the UK or the other countries of the EU.Non-EU international student numbers have more than doubled over the 10-yearperiod, and increased by 7 per cent since 2005/06. Enrolments from other countries ofthe EU continue to show a greater increase than UK-domiciled students, and, as notedin the last Patterns report, this is to a considerable extent related to the enlargement ofthe EU.51 Appendix 2 contains more detailed information about the enrolment of students fromparticular regions and countries. From this it is possible to see which countries are themajor suppliers of students to the UK. This information is summarised in table 12.Universities UKPatterns of higher education institutions in the UK: Eighth report23

Table 12Major countriessupplying students toUK higher educationinstitutions, by level ofstudy, 2006/07Other Post graduate Post graduateCountry First degree Country undergraduate Country degree (taught) Country degree (research)China 18,410 United States 3,620 China 21,620 China 5,170Malaysia 7,710 China 3,245 India 15,500 United States 3,480Republic of Ireland 7,600 France 2,395 Greece 7,095 Greece 3,085Hong Kong 6,660 Republic of Ireland 2,125 Nigeria 5,440 Germany 2,525Germany 6,050 Germany 1,870 United States 5,250 India 1,985France 5,930 Spain 1,605 Pakistan 4,870 Malaysia 1,880Cyprus 5,580 India 1,380 Taiwan 4,260 Italy 1,845Greece 4,890 Poland 920 Republic of Ireland 3,525 France 1,330India 4,080 Japan 915 Germany 3,120 Canada 1,300Poland 3,900 Zimbabwe 785 France 2,940 Taiwan 1,270Nigeria 3,550 Nigeria 720 Thailand 2,285 Republic of Ireland 1,235United States 3,120 Italy 595 Cyprus 2,130 Thailand 1,155Pakistan 2,720 Greece 565 Canada 1,845 Saudi Arabia 1,000Spain 2,385 Hong Kong 450 Japan 1,715 Pakistan 960Sweden 2,175 Philippines 445 Malaysia 1,575 Mexico 875Japan 2,050 Pakistan 395 Italy 1,490 South Korea 865Singapore 1,990 South Korea 370 Ghana 1,415 Portugal 855Norway 1,795 Saudi Arabia 365 Hong Kong 1,410 Spain 845South Korea 1,760 Taiwan 360 Poland 1,270 Japan 820Italy 1,755 Malaysia 335 South Korea 1,235 Nigeria 775Sri Lanka 1,580 Cyprus 315 Spain 1,170 Iran 760Kenya 1,540 Australia 295 Turkey 1,055 Hong Kong 720Belgium 1,510 South Africa 265 The Netherlands 920 Egypt 685Portugal 1,355 Canada 265 Saudi Arabia 900 Libya 650Canada 1,315 Sweden 245 Russia 870 Cyprus 5659 Note that Hong Kong, Taiwanand Macao are distinguishedfrom China in this analysis.52 China 9 continued to be clearly the most significant provider of students to UK highereducation across most levels of study, although its absolute numbers have declined atfirst-degree level since 2005/06. India features very strongly among postgraduatetaught degree students. Students from the United States are also prominent, especiallyat other undergraduate and postgraduate levels.53 Undergraduate enrolments of students from the Republic of Ireland have declinedsomewhat, presumably in response to the changed fee regime in the Republic.54 The decline among undergraduate students from Africa noted in last year’s Patternsreport appears to have been arrested and enrolments at taught postgraduate degreelevel are strong.55 Countries of the Middle East and South Asia feature prominently among postgraduateresearch students, including students from India, Malaysia, Pakistan, Saudi Arabia,Iran, Libya, and Egypt.24

Table 13Main sources of incomereceived by UK highereducation institutions,2000/01, 2005/06 and2006/07, £K (cashterms)Trends in income56 Finally, this section concludes with trends in the sources of income received by highereducation institutions. The data is presented for the latest year, 2006/07, the previousyear 2005/06, and for the financial year 2000/01 as a baseline: it cannot be analysedover a longer timescale because of changes in data definitions.57 Table 13 summarises the main sources and levels of income for these three years, forthe United Kingdom as a whole and for its four constituent countries, and also showsthe percentage changes. Appendix 3 contains more detailed data about the individualcomponents of each income stream.UK England Wales Scotland NorthernIreland2000/01Funding council grants 5,355,777 4,299,885 286,350 632,513 137,029Tuition fees, education grants and contracts 3,048,579 2,589,365 131,262 275,368 52,584Research grants and contracts 2,207,228 1,812,384 78,807 278,265 37,772Other income 2,589,948 2,121,062 132,108 296,152 40,626Endowment and investment income 292,387 245,949 12,533 30,948 2,957Total income 13,493,919 11,068,645 641,060 1,513,246 270,9682005/06Funding council grants 7,544,078 6,121,045 376,813 854,985 191,235Tuition fees and education grants and contracts 4,640,799 3,941,168 199,399 434,585 65,647Research grants and contracts 3,120,606 2,540,013 121,321 389,220 70,052Other income 3,854,546 3,223,825 204,996 350,320 75,405Endowment and investment income 343,083 288,917 15,013 35,226 3,927Total income 19,503,112 16,114,968 917,542 2,064,336 406,2662006/07Funding council grants 8,030,651 6,454,407 432,766 942,699 200,779Tuition fees and education grants and contracts 5,413,985 4,649,073 214,995 470,144 79,773Research grants and contracts 3,376,991 2,744,893 131,334 431,071 69,693Other income 4,077,385 3,416,751 209,967 371,536 79,131Endowment and investment income 390,841 326,494 15,984 43,124 5,239Total income 21,289,853 17,591,618 1,005,046 2,258,574 434,615Percentage change, 2005/06 to 2006/07Funding council grants 6% 5% 15% 10% 5%Tuition fees and education grants and contracts 17% 18% 8% 8% 22%Research grants and contracts 8% 8% 8% 11% -1%Other income 6% 6% 2% 6% 5%Endowment and investment income 14% 13% 6% 22% 33%Total income 9% 9% 10% 9% 7%Percentage change, 2000/01 to 2006/07Funding council grants 50% 50% 51% 49% 47%Tuition fees and education grants and contracts 78% 80% 64% 71% 52%Research grants and contracts 53% 51% 67% 55% 85%Other income 57% 61% 59% 25% 95%Endowment and investment income 34% 33% 28% 39% 77%Total income 58% 59% 57% 49% 60%Universities UKPatterns of higher education institutions in the UK: Eighth report25

Section BPatterns of institutional diversity61 Section B shows, in graphical form, the distribution of various features across highereducation institutions. It points out time series comparisons and trends, wherepossible.62 Not all institutions are included within all the charts. Some institutions recently joiningthe sector do not have available data. In those charts that are derived directly orindirectly from Universities and Colleges Admissions Service (UCAS), data frominstitutions that do not admit students through UCAS are excluded. The studentpopulation in these charts is limited to those who are admitted through the UCAS (andrelated) systems and any students directly admitted to the institution are thereforeomitted, although they are included in charts that are not directly derived from UCASdata.63 Four main themes are addressed:pbalance of provision;pstudent characteristics and outcomes;paspects of staffing in higher education institutions;pfinancial issues.64 Throughout this section, unless otherwise indicated, HESA publications are the sourceof the data.Number of institutions in the sector65 Before addressing the balance of provision in higher education, it should be noted that,since the publication of the last Patterns report, the structure of the sector has changedslightly.66 A number of mergers have taken place since 1994/95. The common pattern forinstitutional mergers in recent years has been the absorption of specialist colleges intothe pre-1992 universities, although this pattern is not universal.67 Since 2005/06, no new institutional mergers have taken place, although there has beena transfer of a campus from De Montfort University to the University of Bedfordshire.Two institutions, both specialist colleges in the performing arts, have joined the sector.68 In total, therefore, this report describes the features of 169 higher educationinstitutions. Since 1994/95, the number of institutions within the sector has reducedfrom 186, a decline of 10 per cent.69 Appendix 4 lists the mergers that have taken place since 1994/95.Institutional charts70 Several charts show the distribution of institutions in relation to various features.Within them, the median position and the upper and lower deciles are shown for eachchart, with last year’s figures in parentheses where these can be directly compared.The text also comments on changes since the first Patterns volume was published,using data from 1998/99.71 There is no suggestion that these charts are in any way “performance indicators”:rather, they are designed to illustrate the shape of the sector as it changes over time.Universities UKPatterns of higher education institutions in the UK: Eighth report27

Balance of provision72 The balance of provision within higher education institutions is considered in fouraspects:pdifferent levels of study;pfull-time and part-time provision;pUK, EU and international students;psubject.73 The following charts analyse the balance by level of study.Institutional chart 1Percentage of studentsfollowing postgraduateprogrammes, 2006/07 100%Lower decile 10%(10%)Median 23%(22%)Upper decile 40%(40%)80%60%40%20%0%74 Institutional chart 1 cannot be directly compared with those in early Patterns reports,which include data from 1998/99, due to a change in methodology. Since 2001/02 therehas been an increase of two percentage points in the median. However, in recent yearsthe lower decile has declined slightly following that some former further educationinstitutions have been absorbed into the higher education sector. The typical highereducation institution has almost a quarter of its higher education students followingcourses at postgraduate level.75 To put these figures into context, institutional charts 2 and 3 show the distribution ofabsolute numbers of enrolments at postgraduate and undergraduate levels within UKhigher education institutions with the figures for 2005/06 in parentheses.28

Institutional chart 2Absolute numbers ofpostgraduateenrolments, 2006/0718,000Lower decile 183(174)Median 3016(2843)Upper decile7221 (7123)16,00014,00012,00010,0008,0006,0004,0002,0000Institutional chart 3Absolute numbers ofundergraduateenrolments, 2006/07180,000Lower decile 572(644)Median 9111(9668)Upper decile19232 (20080)160,000140,000120,000100,00080,00060,00040,00020,000076 These two charts show a clear increase in postgraduate enrolments across the sectoras a whole, and a fall in undergraduate enrolments, again across the whole sector, soconfirming the aggregate figures reported in Section A of this report.77 Institutional chart 4 shows those undergraduate programmes which lead toqualifications other than first degrees.Universities UKPatterns of higher education institutions in the UK: Eighth report29

Institutional chart 4Percentage ofenrolments inundergraduateprogrammes notdirectly leading to firstdegrees, 2006/0790%80%70%Lower decile 0%(0%)Median 15%(16%)Upper decile 38%(38%)60%50%40%30%20%10%078 Since 1998/99 the median has declined by one percentage point, the upper decile isdown one percentage point and the lower decile is unchanged. Change in 2006/07 hasbeen slight, but shows a modest dip as compared with each of the last two years. Themodest reduction in sub-degree qualifications shown in this chart replicates the overalltrend in undergraduate qualifications generally.79 Turning now to the balance between full-time and part-time enrolments, institutionalchart 5 analyses the balance by mode of study.Institutional chart 5Percentage of parttimeenrolments,2006/07100%Lower decile 7%(7%)Median 29%(28%)Upper decile48% (49%)90%80%70%60%50%40%30%20%10%080 Since 1998/99 the median is up 11 percentage points, the upper decile is up 20percentage points and the lower decile is down 2 percentage points. Because ofchanges in definitions we should treat the figures with caution, although there hasundoubtedly been a marked increase in part-time numbers. There are differentcategories of part-time students. They include not only those on undergraduate andpostgraduate degree programmes, but also students following courses of personal andprofessional updating that may be at either level, and that encompass a broad range ofstructures and content.30

81 Institutional chart 5 and its predecessors have tentatively suggested a trend for greaterdifferentiation in the provision of part-time higher education courses, with institutionsthat already have significant part-time provision expanding it; although the most recentfigures show an increase in the median, implying a further movement towards parttimeprovision within the sector as a whole.82 As the previous Patterns report identified and as noted in Section A, the growth of studentnumbers coming from countries outside the EU has significantly outstripped the growthin enrolments of home and EU-domiciled students during recent years. We now addressthe institutional distribution of EU and international students. Institutional charts 6, 7 and8 show the numbers of EU and non-EU students enrolled on programmes of study athigher education institutions in the UK, both in total, and disaggregated between studentsfrom other EU countries and from outside the EU (international).Institutional chart 6Enrolments of allnon-UK-domiciledstudents, 2006/079,000Lower decile 106(101)Median 1758(1509)Upper decile4711 (4330)8,0007,0006,0005,0004,0003,0002,0001,000083 Since 1998/99 the median is up by 55 per cent, the upper decile is up by 65 per cent andthe lower decile is up by 280 per cent, although of course from a low base.84 Clearly, institutions across the spectrum have seen significant increases in thenumbers of students from outside the UK. Since 2001/02, the number of institutionswith more than 5,000 students enrolled from outside the UK has risen from three to 14.Institutional chart 7Enrolments ofinternational (non-EU)-domiciled students,2006/078,000Lower decile 59(47)Median 1034(1007)Upper decile 3435(3185)7,0006,0005,0004,0003,0002,0001,0000Universities UKPatterns of higher education institutions in the UK: Eighth report31

85 Since 1998/99 the median is up by 112 per cent, the upper decile is up by 110 per centand the lower decile is up by 145 per cent. The growth in international student numbersis clear across the sector as a whole. What is new compared to the situation reported inprevious Patterns reports is that it is now clear that there is no differential increaseamong the institutions in the middle of the chart.Institutional chart 8Enrolments of EU(excluding UK)-domiciled students,2006/07 3,000Lower decile 44(45)Median 577(555)Upper decile 1512(1439)2,5002,0001,5001,000500086 Since 1998/99 the median is up by 3 per cent, the upper decile is up by 18 per cent andthe lower decile is down by 4 per cent. In previous Patterns reports we observed areduction in the enrolment of students from other EU countries. This has now beenreversed and numbers have increased across the spectrum of institutions. Theenlargement of the EU is obviously relevant here, and the institutional figures accordwith the totals reported in Section A.Student characteristics and outcomes87 The following paragraphs address some aspects of student characteristics andoutcomes within higher education institutions.88 Previous Patterns reports we have drawn attention to the growing significance ofmature student enrolments in UK higher education. The percentage of full-time matureundergraduates is shown in institutional chart 9.32

Institutional chart 9Percentage of maturefull-timeundergraduates,2006/07100%Lower decile 10%(11%)Median 26%(25%)Upper decile 47%(44%)80%60%40%20%0%89 Since 1998/99 the median is up three percentage points, the upper decile is up eightpercentage points and the lower decile has reduced by one percentage point. Thefigures show a continuing increase in the proportion of full-time matureundergraduates, and a concentration in institutions which already had a significantproportion.90 As noted in Section A female students are in a majority among all modes and levels.There are, however, considerable variations between institutions, which are shown ininstitutional chart 10.Institutional chart 10Percentage of malestudents, 2006/07Lower decile 29%(28%)Median 43%(42%)Upper decile 52%(52%)100%80%60%40%20%0%91 In the large majority of institutions male students make up from 30 per cent to 50 percent of the total, although there are some obvious exceptions: these are chieflyspecialist institutions. The subject specialisms of these institutions include nursing andeducation at the lower end of the chart, and engineering and technology at the otherend.92 Since this is only the third time that this chart has been presented within the Patternsseries, comparisons over the longer term cannot yet be made.Universities UKPatterns of higher education institutions in the UK: Eighth report33

93 Institutional chart 11 shows the percentage of UK first-year students who are reportedas belonging to ethnic minority groups.Institutional chart 11Percentage of UKdomiciledfirst-yearstudents from ethnicminority groups,2006/07100%Lower decile 3%(3%)Median 11%(10%)Upper decile 39%(39%)80%60%40%20%0%11 The Office for NationalStatistics has furtherinformation about the NSSEC classificationavailable at:http://www.statistics.gov.uk/methods_quality/ns_sec/default.asp94 Since 1998/99 the median is up four percentage points, the upper decile is up 16percentage points and the lower decile remains unchanged. Previous Patterns reportssuggested there was evidence of an increasing concentration of students from ethnicminority groups in a limited number of institutions. These are, above all, institutionslocated in London. There is now a modest indication of an increase in the median,implying a more general increase in the proportion of students from minority ethnicgroups across the sector as a whole. There continue to be outliers at both ends of thespectrum, being generally specialist institutions; for example, pharmacy features atthe higher end and agriculture at the lower end. (The overall percentage of entrants tohigher education institutions from ethnic minority groups is 17 per cent.)95 The first few Patterns reports analysed the participation of students from ‘underrepresentedgroups’, as identified within the funding councils’ performance indicators.Two indicators were used: first, the percentage of young full-time first-degree entrantsfrom social classes IIIM, IV and V; and secondly, the percentage coming from ‘lowparticipation neighbourhoods’, as identified by the Higher Education Funding Councilfor England (HEFCE). There was a close correlation between the institutional rankingon each of these measures (while not assuming that the measures themselves closelycorrelated) and non-traditional entrants to full-time undergraduate courses (again, atinstitutional level).96 In the most recent years, following the 2001 Census, a new categorisation of socioeconomicgroupings has been adopted, the national statistics socio-economicclassification. 1197 In place of the six categories used in the earlier definition of social class, the newclassification has seven categories as follows:34

Table 14Classification ofnational statisticssocio-economic groupsNS SEC groupDescription1 Higher managerial and professional occupations2 Lower managerial and professional occupations3 Intermediate occupations4 Small employers and own account workers5 Lower supervisory and technical occupations6 Semi-routine occupations7 Routine occupations98 The last four of these categories have been identified as being the lower socioeconomicgroupings for the purpose of constructing performance indicators for thehigher education sector. While this definition will be followed in this report, it should benoted that it includes small employers and own account workers, which may include awide variety of occupations. For example, it includes many people engaged in farming(and so agricultural college figures are very high) and also many contractors in thecomputing industry.99 The analyses of socio-economic groupings are available only for students enteringthrough the UCAS system. While this covers the large majority of all entrants to fulltimeundergraduate courses (85 per cent), it is possible that it understates thepercentage of entrants from lower socio-economic groups. The data for the year2006/07 is presented in institutional chart 12.Institutional chart 12Percentage of youngfull-time firstdegreeentrantsfrom nationalstatistics socioeconomicclassificationclasses 4, 5, 6 and 7,2006/07100%80%60%Lower decile 18%(19%)Median 33%(32%)Upper decile 45%(43%)40%20%0%12 In essence, the newdefinition of lowparticipationneighbourhoods, usingthe “POLAR2”categorisation (based onanalysis of previousexperience of data withinthe higher educationsector) is very different tothe earlier categorisation,which was based on superprofiles categories.100 The lower decile has increased by one percentage point since 2005/06 but the medianand upper deciles show increases of three and four percentage points. The overallimpression therefore is that there is an increase in the proportions of students enteringhigher education from social classes 4, 5, 6 and 7, and that this increase is concentratedin institutions which are already showing a high proportion of students from the lowersocial classes.101 There is a major issue arising from the new definition of low participationneighbourhoods adopted by the performance indicators steering group in the mostrecent year 12 . Due to the change in definition, it is not possible to produce a chartcomparable with earlier charts.Universities UKPatterns of higher education institutions in the UK: Eighth report35

102 Institutional chart 13 shows the distribution of students from low participationneighbourhoods, using the new definitions: this will form the basis of comparativeanalysis in future years.Institutional chart 13Percentage of youngfull-time first-degreeentrants from lowparticipationneighbourhoods,2006/073025Lower decile 3.4%(3%)Median 7.6%(10%)Upper decile 16.1%(39%)2015105013 A full description of thetariff is given at:http://www.ucas.ac.uk/candq/tariff/.14 The full definition is,‘average tariff points forfull-time, first year,undergraduate studentswhose highest qualificationon entry was 'A' levelequivalent qualification notelsewhere specified, or anycombinations of GCE'A'/SCE 'Higher' andGNVQ/GSVQ or NVQ/SVQ atlevel 3’.Institutional chart 14Average tariff points ofentrants to full-timeundergraduatecourses, 2006/07103 Earlier Patterns reports included information about new students’ entry qualifications,based on their A-level points, but this time series was discontinued because thestructure of reporting changed significantly. Applicants and acceptances to full-timeundergraduate courses are now recorded in relation to UCAS’ tariff points, whichinclude not only conventional academic qualifications but also many vocationalqualifications. 13104 This is the third year in which we show entry qualifications to higher education institutionsrecorded according to the new UCAS tariff as shown in institutional chart 14. 14600500400Lower decile 199(209)Median 273(275)Upper decile 406(416)3002001000105 It is too early to provide longer-term time series comparisons, although there is amarginal decrease in the average points scores, as compared with last year.36

15 The denominator in this andthe following chart is allclassified degrees. Ittherefore excludes mostclinical degrees, which areawarded withoutclassification. ManyScottish universities awarda significant proportion oftheir degrees withoutclassification.Institutional chart 15Percentage of firstclassdegreesawarded, 2006/07106 We now turn to the outcomes from higher education study as represented by the degreeclassifications awarded to qualifiers from first-degree programmes and thesubsequent graduate employment rates. Institutional chart 15 shows the percentage offirst-class honours degrees awarded. 1540%35%30%Lower decile 7%(7%)Median 12%(11%)Upper decile 20%(19%)25%20%15%10%5%0%107 Since 1998/99 the median is up four percentage points, the upper decile is up sixpercentage points and the lower decile is up three percentage points. There has been anoticeable increase in the proportion of students awarded a first-class degree from1998/99 to 2006/07. Institutions at the upper end of the scale show the greatest level ofincrease, i.e. some institutions that have historically awarded a high percentage of firstclassdegrees have increased their proportion.108 It is also relevant to look at the combined total of firsts and upper seconds, which arepresented in institutional chart 16.Institutional chart 16Percentage of firstand upper secondclass degreesawarded, 2006/07100%Lower decile 46%(47%)Median 59%(58%)Upper decile 76%(77%)90%80%70%60%50%40%30%20%10%0%Universities UKPatterns of higher education institutions in the UK: Eighth report37

109 Since 1998/99 the median is up six percentage points, the upper decile is up eightpercentage points and the lower decile is up five percentage points. Again, there hasbeen a significant increase in the proportion of students gaining good honours degrees,although there is a modest decline at the upper and lower ends of the spectrum.Throughout the sector, however, it continues to be the case that the award of a first- orupper second-class degree is the norm rather than the exception.110 Finally, we turn to graduate employment. Institutional chart 17 shows the percentage‘employment rate’ (i.e. all activities except unemployment) for full-time UK-domiciledfirst degree students who graduated in the academic year 2005/06, as reportedapproximately six months after graduation.Institutional chart 17 Lower decile 90%Percentage of firstdegree full-time(89%)graduates notunemployed, 2005/06 100%90%80%70%60%50%40%30%20%10%0%Median 94%(94%)Upper decile 96%(97%)111 There has been no significant change since the last year: the chart continues to show avery low level of unemployment among first-degree graduates.112 It is too early to show longer-term changes and indeed these would need to be set in thecontext of the overall labour market. However, there are no significant changes in thereported figures as compared with 2004/05.Aspects of staffing in higher education institutions113 Institutional chart 18 updates the analysis of the number of academic cost centreswithin which staff of higher education institutions were undertaking teaching andresearch (see Appendix 5 for a list of HESA academic cost centres).38

Institutional chart 18Number of costcentres within whichstaff are employed,2006/0730%Lower decile 1(1)Median 16(16)Upper decile 23(23)25%20%15%10%5%0%114 As reported in the previous Patterns reports both the median and the upper decile havereduced by one cost centre since 1998/99, perhaps reflecting a reduction in spread ofsubject provision. However, there is no change in the most recent year.115 Three years ago, for the first time, it was possible to include an analysis of the genderbalance of all academic staff. Institutional chart 19 updates this, showing thepercentage of female academic staff in higher education institutions in 2006/07.Institutional chart 19Percentage of femaleacademic staff,2006/07100%Lower decile 34%(33%)Median 44%(43%)Upper decile 57%(55%)90%80%70%60%50%40%30%20%10%0%116 The gender balance of academic staff within higher education institutions variesmarkedly between institutions, and the issue of subject distribution is relevant here.117 The median and the upper decile show a slight increase as compared with 2005/06, andacross the spectrum of institutions there has been a modest increase in the proportionof female academic staff recorded in the last year.118 Institutional chart 20 continues the analysis of the ethnicity of members of the academicstaff for the third year. There is a slight discontinuity, however, for technical reasons,which leads to a greater number of institutions apparently showing a zero return.Universities UKPatterns of higher education institutions in the UK: Eighth report39

Institutional chart 20 Lower decile 0%Percentage of ethnicminorities among(2%)academic staff,2006/07 40%35%Median 8%(7%)Upper decile 17%(17%)30%25%20%15%10%5%0%119 While the median has increased slightly, the lower decile has reduced by twopercentage points while the upper decile is unchanged. It is relevant to note that, acrossall higher education institutions, the percentage of academic staff from ethnic minoritygroups is 10 per cent, as compared with the median institution’s figure of seven percent. This draws attention to the concentration of staff from ethnic minority groups:unsurprisingly, as in the last two years, only one of the 10 institutions at the upper endof the graph is located outside London.Financial issues120 The previous Patterns reports included some analysis of financial security, and of costsand “efficiency”, together with an analysis of sources of income.121 This year’s report adopts the same approach. Several of these issues in this section areelaborated upon in Section C, which discusses some financial aspects of diversity.Financial security122 The following paragraphs address some of the measures of financial security of highereducation institutions, reported in previous Patterns reports.123 Institutional chart 21 shows the historical surplus/deficit for each institution in 2006/07as a percentage of income.40

Institutional chart 21Surplus/deficit as apercentage of income,2006/0725%Lower decile 7.3%(8.7%)Median 2.3%(2.1%)Upper decile -1.1%(-1.3%)20%15%10%5%0%-5%-10%-15%124 Since 1998/99 the median is down 1.2 percentage points, the upper decile is up 1.3percentage points and the lower decile is down 0.1 percentage points. There is a slightimprovement as compared with the figures given last year, although there are feweroutliers at the upper end. Across the sector as a whole, the median figure of a 2.3 percent surplus continues to be quite low.125 However, the current year out-turn is only one relevant measure, and one that shouldbe seen in a wider context. Institutional charts 22 and 23 show two other securitymeasures, relating to liquidity and the retention of reserves respectively.Institutional chart 22Days ratio of netliquid assets to totalexpenditure,2006/07Lower decile 139 days(131 days)350Median 62 days(56 days)Upper decile 15 days(12 days)300250200150100500-50126 Since 1998/99 the median has increased by four days, while the upper decile is up bynine days and the lower decile is up by four days. The latest year’s figures show, for thefirst time, a modest improvement in this measure across the spectrum of institutions.127 The days’ ratio of general funds to total expenditure is a measure of the ability ofinstitutions to invest in the future as illustrated in institutional chart 23.Universities UKPatterns of higher education institutions in the UK: Eighth report41

Institutional chart 23Days ratio of totalgeneral funds to totalexpenditure, 2006/07600Lower decile 237days (224 days)Median 103days (85 days)Upper decile 13days (8 days)5004003002001000-10016 In 2005/06 institutionswere, for the first time,required to include netpensions assets orliabilities within theirgeneral funds as set out inthe FRS17 accountingconvention. Mostinstitutions have a netpensions liability, whichmeans that there was asignificant overall reductionin general funds. The largereduction in this indicator istherefore, primarily due tonew accountingconventions: the pensionsliabilities existed in thepast, but were notpreviously counted.128 Because of a change in definitions comparisons with years before 2005/06 cannot bemade 16 . However, there is a modest improvement compared with 2005/06.129 The previous Patterns reports set out an index of financial security based on threefactors (equally weighted):pthe average of the last two years’ percentage ratios of historical surplus/(deficit) aftertax to total income;pthe days ratio of general funds to total expenditure;pthe days ratio of net liquid assets to total expenditure.130 The security index for 2006/07 is set out in institutional chart 24.Institutional chart 24The security index,2006/07600500400300200100042

131 This index does not reflect the financial security of the sector as a whole, but simply onthe relativities within the sector. It provides a basis for analysing aspects of institutionalprovision against a single measure of financial security, but a quantification of changefrom year to year within the sector as a whole cannot be derived from it. It doesnevertheless provide a basis for disaggregation of the sector and an assessment ofcomparative financial security among individual institutions and groupings ofinstitutions.132 In 2005/06 four of the top 20 institutions in the index were comparatively small colleges,mostly of a specialist nature, that number having reduced from six in 2004/05. Thelatest figures show a return to the earlier position with six small specialist collegesbeing within the top 20 in the security index. In previous years, the post-1992universities appeared to be more prominent at the head of the index than the pre-1992universities, but that is no longer the case.133 At the lower end of the index, five of the bottom 20 institutions are specialist colleges ofperformance arts, with the other places being shared evenly across the sector.134 Last year, for the first time, in response to suggestions by some users of the Patternsseries, an additional analysis to show the ratio of borrowing by institutions as apercentage of total income. Institutional chart 25 presents this for the second time.Institutional chart 25Percentage ratio oftotal long-termborrowings to totalincome, 2006/07140%Lower decile 0%(0%)Median 14%(15%)Upper decile 40%(42%)120%100%80%60%40%20%0%135 The chart continues to show a very wide variation in long-term borrowing in relation toinstitutional income, ranging from many institutions that report zero borrowing toabove the level of 80 per cent of annual income. The chart shows that borrowings as apercentage of income have fallen slightly over from 2005/06 to 2006/07. The changesince last year suggests that there is now slightly less exposure to long-term borrowingas a percentage of income across the sector, even though the total borrowing may haverisen. The level of absolute borrowings should also be considered. This is described inparagraphs 205 to 207.136 As indicated in the last Patterns report, this ratio is being published separately for twoyears, and will be considered for inclusion as a component of the security index in theninth Patterns report.Universities UKPatterns of higher education institutions in the UK: Eighth report43

17 The background to thedevelopment ofperformance indicators isdescribed in a paper by theHigher Education FundingCouncil for Englandavailable at:http://www.hefce.ac.uk/pubs/hefce/1999/99_11.rtfPatterns of income137 The Joint Performance Indicators Working Group and the Higher EducationManagement Statistics Group, which defined the financial indicators published byHESA, proposed that dependence on funding council income is a further aspect offinancial security 17 . It is also, of course, an issue of inherent interest in the context of thediversity of the sector.138 The percentage of income from the funding councils is shown in institutional chart 26.Institutional chart 26Funding councilincome as apercentage of allincome, 2006/0780Lower decile 29%(30%)Median 45%(46%)Upper decile 59%(62%)706050403020100139 Since 1998/99 the median is unchanged, while the upper decile is down three percentagepoints and the lower decile is down one. At some points in the graph in previous reports, wepointed out that funding council income was increasing slightly compared to income fromother sources. This trend appeared to have been arrested last year, and has now beenreversed, no doubt partly due to the recent introduction of variable tuition fees in England.140 Institutional chart 27 shows the distribution of the public funding of research throughthe dual support system, that is to say the combination of funding council researchincome and research grant and contract income from the research councils.Institutional chart 27Funding of researchthrough the dualsupport system (£K),2006/07200,000Lower decile 0(21)Median 2,467(2,508)Upper decile51,660 (48,350)180,000160,000140,000120,000100,00080,00060,00040,00020,000044

141 Since 1998/99 the lower decile is unchanged (at zero), the median is up 48 per cent andthe upper decile is up 89 per cent. It is only in the upper decile that we see an increasein research funding in the last year. The short- and long-term trends demonstrate theconcentration of research funding in a small number of higher education institutions.142 Institutional chart 27 expresses public funding of research in absolute cash terms.Institutional chart 28 shows the relationship between public research income throughthe dual support system and all income.Institutional chart 28Funding of researchthrough the dualsupport system as apercentage of allincome, 2006/07Lower decile 0%(0%)30%Median 3%(4%)Upper decile 21%(21%)25%20%15%10%5%0%143 There is a steep gradient here above the upper decile. The extent of concentration ofresearch funding is demonstrated by the fact that the overall ratio of public researchincome to overall income is 13 per cent (16 per cent in Scotland): in this chart themedian institution is on three per cent (down from four per cent last year).144 As in the previous two Patterns reports, we also set out data about the relationshipbetween the income received by institutions from research grants and contracts, andthe research income from the funding councils, which is designed to underpin thedevelopment of research.145 In institutional chart 29, institutions are mapped showing the income from researchgrants and contracts as a percentage of the funding councils’ research grant. The chartonly includes institutions that have research grant income of at least £100,000.Universities UKPatterns of higher education institutions in the UK: Eighth report45

Institutional chart 29Research grants andcontracts as apercentage offunding councilresearch grant,2006/071200%1000%Lower decile 443%(419%)Median 176%(166%)Upper decile 61%(58%)800%600%400%200%0%18 One extreme outlier hasbeen excluded from thisanalysis.146 The chart shows that the large majority of institutions receive more income fromresearch grants and contracts than from the research funding provided by the fundingcouncils. There is also an increase across the whole spectrum of institutions comparedwith the data presented in the last year’s Patterns report.147 Following changes in the HESA finance record in 2004/05, institutional chart 30 showsfor the third time the institutional distribution of income from ‘other services rendered’;which broadly amounts to commercial contracts of a non-research nature. 18Institutional chart 30Income for otherservices rendered(£K), 2006/0750,000Lower decile 0(0)Median 3100(2782)Upper decile15219 (13821)45,00040,00035,00030,00025,00020,00015,00010,0005,0000148 There is a similar, though less extreme, level of differentiation between institutions, asseen above in relation to research. In the last year higher education institutions havereceived significantly more income from ‘other services rendered’.149 In view of the importance of income from international student fees, institutional chart31 looks at income from this source. Fees derived from international (non-EU) studentsare once again by far the largest component of international income for UK highereducation institutions.46

Institutional chart 31Income frominternational (non-EU)student fees (£K),2006/0760,000Lower decile 262(273)Median 5,8525,018)Upper decile 24,615(21,056)50,00040,00030,00020,00010,0000150 Here again, as noted previously, there is a highly differentiated position, with manyinstitutions earning less than £5 million from the fees of international (non-EU)students, while a few earn over £30 million per year.151 The median and upper decile have increased significantly since last year. Only the lowerdecile shows no increase: this last point may be due to the change in the constituency ofhigher education institutions, as new institutions have joined the sector. As noted in theprevious Patterns report, there appears to be an increasingly broader distribution of theincome from international student fees, and there is clearly an increase in the incomefrom international student fees among most of the higher education institutions.19 For technical reasons, thelatest year for which thesefigures are available is2005/06.20 The University of WalesRegistry and the Universityof London’s centralinstitutes and activitieshave been excluded fromthis and the followingcharts, together with asmall number of outliers.Costs and efficiency152 Finally, in this section of the report, we update information about expenditure per fulltimeequivalent student, which was published in the previous Patterns reports. 19153 For comparison with the rates of change shown in parentheses in the followingparagraphs, it should be noted that the increase in the GDP deflator over the period1998/99 to 2005/06 was 21 per cent.154 It should also be noted that the calculation of full-time equivalent students haschanged, with the exclusion of students following non-credit-bearing courses: therewill therefore, inevitably, be an increase in the costs per full-time equivalent student, ascompared with the earlier Patterns reports.155 Institutional chart 32 shows the cost per full-time equivalent student of centraladministrative services, including staff and student facilities. 20Universities UKPatterns of higher education institutions in the UK: Eighth report47

Institutional chart 32Administrative costsper full-timeequivalent student(£), 2005/06Lower decile £1,009(£920)£18,000Median £1,520(£1,419)Upper decile £2,898(£2,936)£16,000£14,000£12,000£10,000£8,000£6,000£4,000£2,000£021 For technical reasons, thelatest year for which thesefigures are available is2005/06.156 Since 1998/99 the median has increased by £576 (61 per cent), the upper decile is up£867 (42 per cent) and the lower decile up £361 (54 per cent). As in the last threePatterns reports, it appears to be the case that institutions generally have increasedtheir administrative expenditure per full-time equivalent student by more than the rateof inflation. It is important to recognise that institutional structures vary, which willsignificantly affect where costs are recorded across an institution. Centraladministrative costs should be considered alongside the non-academic costs withinacademic departments, since in several institutions the administrative costs will fallalso within academic departments. This is shown in institutional chart 33. 21Institutional chart 33Academicdepartmental costsper full-timeequivalent student,excluding academicstaff (£), 2005/06£20,000£18,000£16,000Lower decile £658(£638)Median £1,331(£1,299)Upper decile £3,637(£3,526)£14,000£12,000£10,000£8,000£6,000£4,000£2,000£0157 Since 1998/99 the median is up by £306 (30 per cent), the upper decile is up £1,436 (65per cent) and the lower decile is up £148 (30 per cent). There is a marked increase in theunit costs of administrative activities within academic units, especially at the higher endof the distribution. This may reflect a shift from central administrative cost centres toacademic cost centres as a result of reorganisation. It may also reflect a reallocation ofbudget codes to areas closer to the students.48

22 For technical reasons, thelatest year for which thesefigures are available is2005/06.158 For the third year, in institutional chart 34, we present a further ratio, about the cost perfull-time equivalent student of academic services, including expenditure on libraries,computing facilities, museums, galleries and observatories (except those run byacademic departments) 22 . The ratio also covers expenditure on any other generalacademic services not covered above including, for example, radiation protection,international liaison office and industrial liaison.Institutional chart 34Total academicservices expenditureper full-timeequivalent student (£),2005/06Lower decile £435(£426)£7,000£6,000Median £751(£710)Upper decile £1,490(£1,386)£5,000£4,000£3,000£2,000£1,000£0159 The figures show modest increases as compared with the previous year; in futurereports we will show a time series comparison.160 Finally, as in previous years, institutional chart 35 shows the spread of premisesexpenditure per full-time equivalent student.Institutional chart 35Premisesexpenditure per fulltimeequivalentstudent (£), 2005/06Lower decile £520(£469)5,000Median £890(£819)Upper decile £2,000(£2,008)4,5004,0003,5003,0002,5002,0001,5001,0005000161 Since 1998/99 the median has increased by £243 (37 per cent), the upper decile by £682(52 per cent) and the lower decile by £136 (35 per cent).Universities UKPatterns of higher education institutions in the UK: Eighth report49

50162 As noted in previous Patterns reports, there has been a continuing increase in premisescosts. This has been concentrated at the upper end of the graph, reflecting the fact thatinstitutions with already high costs have seen these rise disproportionately. Howeverthis trend is reversed in the latest figures, which show a marginal reduction in premisescosts at the upper end of the scale.

Section CFinancial aspects of diversity163 This year’s themed section of Patterns goes into more detail about some of the sector’sfinancial indicators. It elaborates on some of the financial indicators and trendsdescribed in section A and B with the aim of providing a more comprehensiveassessment of the financial diversity of the UK higher education sector. The newsection compares a number of financial indicators for the period between 2002/03 and2006/07 and identifies the main trends. It looks at the following aspects of the financesof higher education institutions:prevenuepexpenditurepcapital investment in the estatependowmentspliquiditypsurpluses and deficits23 In this chart, the ‘Other’category includesotherwise unattributeditems in the fundingcouncils’ grants, and alsoincludes catering, etc.Revenue164 The following pie chart shows the major sources of income across all higher educationinstitutions in the UK in the most recent year, 2006/07. 23Chart 4Major incomesources of UK highereducation institutions,2006/07Endowments &investments2%Other operating income5%Other13%Funding council T grant25%Other services6%Other RGC4%Research grantsfrom government3%Funding council R grant8%Research grantsfrom UK charities4%Research grants fromResearch councils5% Non-EU student fees8%UK/EU student fees17%165 This chart shows that almost exactly 50 per cent of the income of higher educationinstitutions in the United Kingdom currently comes from the teaching and researchgrants of the funding councils, together with fees from UK and EU students. The totalincome from research grants from the research councils, UK charities and thegovernment (excluding the funding council research grant) and from contractsconstitute 16 per cent of all income. However, there is a great deal of variation in thesignificance of different income sources from one institution to another.Funding council teaching grant as a percentage of total income166 As chart 4 above indicates, the teaching grant from the funding councils represents thelargest single source of income to higher education institutions, making up almostUniversities UKPatterns of higher education institutions in the UK: Eighth report51

exactly a quarter of their income in 2006/07.167 In 2002/03, teaching grant from the funding councils constituted 26.8 per cent of thetotal income to UK higher education institutions. In 2006/07, the equivalent figure was25.2 per cent. Over the period 2002/03–2006/07, the teaching grant itself increased by28 per cent, compared with the overall increase in institutional income of 37 per cent(both expressed in cash terms).168 The teaching grant makes up a larger percentage of some individual institutions’ totalincome than others. The institutional distribution of these funds in 2006/07 is shown inthe following chart.Chart 5Teaching grant as apercentage of allincome: institutionaldistribution, 2006/07T grant as % of income....80%70%60%50%40%30%20%Median = 35%10%0%169 Chart 5 shows a broadly even spread across institutions of income from the teaching grant,ranging from less than 10 per cent to over 60 per cent, with the median at 35 per cent.170 There has however been significant change in teaching grant as a percentage of totalincome at the level of individual institutions. The following chart shows the change overthe last five years across all institutions expressed in percentage points of the teachinggrant within overall income.Chart 6Change in teachinggrant as percentageof total income,2002/03–2006/0715105Median = -1.2 percentage points0-5-10-1552

Chart 7Histograms showingdistribution ofteaching grant aspercentage of allincome, 2002/03 and2006/07171 A more detailed analysis of institutional changes over time is shown in the followinghistograms, which show that the number of institutions relying on the grant forteaching as 50 per cent or more of total income have dropped slightly.504030Teaching grant, 2002/03504030Teaching grant, 2006/0720201010010 20 30 40 50 60 More%age income from funding councils teaching grant010 20 30 40 50 60 More%age income from funding councils teaching grantFunding council research grant as a percentage of total income172 In 2002/03, the research grant from the funding councils constituted 7.6 per cent of thetotal income to UK higher education institutions. In 2006/07, the equivalent figure was7.9 per cent. Over the period, the research grant increased by 42 per cent, comparedwith the overall increase in institutional income of 37 per cent (both expressed in cashterms.)173 There is, of course a very wide variation in the significance of the research grant in theincome of individual institutions. The institutional distribution of the research grant in2006/07 is shown in chart 8.Chart 8Research grant as apercentage of allincome: institutionaldistribution, 2006/07Research grant as % of income....20181614121086420Institutions174 The chart shows a sector within which almost a half of institutions receive either noresearch grant or less than 2 per cent of the total institutional income. A second groupreceives between 2 per cent and 14 per cent of its income from the funding councils’research grants, while a small group receive a greater proportion.175 A summary of the situation in both 2002/03 and 2006/07 is given in the followinghistograms, which show the number of institutions receiving particular percentages oftheir total income from the funding councils research grant.Universities UKPatterns of higher education institutions in the UK: Eighth report53

Chart 9Histograms showingdistribution ofresearch grant aspercentage of allincome, 2002/03 and2006/07605040302010Research grant, 2002/03 Research grant, 2006/0760504030201000 2 5 10 15 20%age income from funding councils research grant00 2 5 10 15 20%age income from funding councils research grant176 Over the last five years there has been a small but perceptible increase in the numberof institutions receiving more than 15 per cent of their total income from the fundingcouncils’ research grant, offset by a reduction in all other groups, except the lowest two– a graphical representation of the increasing concentration of research funding.Non-EU student fee income as a percentage of total income177 In 2002/03, income from non-EU overseas students’ fees was 7 per cent of the totalincome of UK HEIs. In 2006/07, the equivalent figure was 8 per cent. During that time,international students’ fees increased by 58 per cent, compared with the overallincrease in institutional income of 37 per cent (both expressed in cash terms.) Duringthe last five years, fees from non-EU students have come to represent a bigger share ofhigher education institutions’ income than the funding councils’ research grants.178 Chart 10 shows the different dependency of individual higher education institutionsdepended on non-EU students’ fees in 2006/07.Chart 10Percentage incomefrom non-EUstudents’ fees,2006/0735302520151050179 The chart shows a generally even distribution except at the higher end, where we see avery small number of institutions generating more than 20 per cent of their totalincome from non-EU students’ fees.180 The following two histograms, chart 11, show the change over the last five years.54

Chart 11Histograms showingdistribution of non-EU student fees aspercentage of allincome, 2002/03 and2006/078070605040302010Non-EU student fees, 2002/03 Non-EU student fees , 2006/07807060504030201002 5 10 15 20 MorePercentage income from non-EU student fees02 5 10 15 20 MorePercentage income from non-EU student fees181 Chart 11 shows that the numbers of institutions recording less than 5 per cent of theirincome coming from non-EU student fees has been reduced, and there has been amarked increase in the number recording more than 15 per cent from this source. Thesignificance of this source of funding is plainly increasing for many institutions.Health service income182 Another major provider of income to the higher education institutions is the NHS. Whatfollows is only partial, because it cannot include research grants received from the NHS(they cannot be disaggregated from other central and local government funding). Itdoes however include fee income from the Department of Health (and its territorialequivalents) and also income received from UK strategic health authorities and NHStrusts for the funding of any employees of the institution, including posts in academicteaching (except for those relating to the provision of a service, and except forresearch).183 In 2002/03 the total identifiable funding from the health service, therefore, was £797million. In 2006/07, it was £1,062 million, an increase of 33 per cent, slightly less thanthe increase in total income over the period.184 Higher education institutions vary widely in the extent to which they receive NHSincome, as the following charts and histograms demonstrate.Universities UKPatterns of higher education institutions in the UK: Eighth report55

Chart 12Health serviceincome (fees andgrants) as apercentage of totalincome 2002/03 and2006/072002/0330%25%20%15%10%5%0%2006/0730%25%20%15%10%5%0%185 A comparison of the two charts shows that the number of institutions receiving someincome from the health service has increased significantly during the period1997/98–2006/07.186 The same tendency is also illustrated in the histograms in Chart 13. In 2006/07 only halfas many institutions were receiving less than £100,000 compared to 2002/03.56

Chart 13Histograms showinghealth serviceincome (fees andgrants) (£K) receivedby higher educationinstitutions, 2002/03and 2006/07100806040Health service income, 2002/03 Health service income , 2006/0710080604020200100 500 1000 5000 10000 20000 MoreIncome from NHS (£K)0100 500 1000 5000 10000 20000 MoreIncome from NHS (£K)Expenditure187 We now turn our attention to two aspects of expenditure, concerned with staffing andthe estate. These are:pthe percentage ratio of total payroll costs to total income;prepairs and maintenance as a percentage of total expenditure.Payroll costs as a percentage of total income188 In 2002/03, the ratio of expenditure on staff to total income across all higher educationinstitutions in the UK was 57.7 per cent. In 2006/07, the equivalent figure was 57.1 percent, representing a small reduction overall.189 However, there is a wide distribution across the higher education sector, as the chart 14illustrates.Chart 14Ratio of payroll coststo total income,2006/0780706050403020100190 The chart shows, in 2006/07, a distribution in this ratio of between 40 per cent and 70per cent, but with most institutions clustering between 55 per cent and 65 per cent ofincome spent on staff costs. The following histograms show the change in thisdistribution over the last five years.Universities UKPatterns of higher education institutions in the UK: Eighth report57

Chart 15Histograms showingthe ratio of payrollcosts to all income,2002/03 and 2006/078070605040302010Ratio of payroll costs to income, 2002/03 Ratio of payroll costs to income, 2006/078070605040302010040 45 50 55 60 65 70 MorePercentage expenditure on staff040 45 50 55 60 65 70 MorePercentage expenditure on staff191 When comparing the figures for institutions which have provided data consistently forthe last five years, we see that there has been a reduction in the number of institutionsdevoting more than 60 per cent of their income to staff costs, as other costs have beenincurred.Repairs and maintenance as a percentage of total expenditureChart 16Histograms showingthe percentageexpenditure onrepairs andmaintenance,2002/03 and 2006/07192 In 2002/03, the expenditure of UK higher education institutions on repairs andmaintenance was 3.37 per cent of the total expenditure. By 2006/07, that figure hadincreased marginally to 3.4 per cent, but the distribution had changed significantly, asmore institutions appeared to be spending an above average amount on repairs andmaintenance.504030Percentage expenditure on repairsand maintenance, 2002/03_____504030Percentage expenditure on repairsand maintenance, 2006/07_____2020101001 2 3 4 5 6 More% expenditure on repairs and maintenance01 2 3 4 5 6 More% expenditure on repairs and maintenanceCapital investment in the estate24 Estates managementstatistics provides highereducation institutions withinformation to help themimprove their propertymanagement. Seehttp://www.opdems.ac.uk/193 The proportion of the (non-residential) estate which is classified as newly built orrefurbished – groups A and B in the annual estates management statistics – gives ameasure of investment in the estate in the higher education sector. 24Proportion of non-residential estate classified as newly built or refurbished194 Data about the estate is collected on a voluntary basis from institutions, and some havenot made a return consistently over the last five years. Time series comparisons aretherefore difficult.195 There are 132 institutions which have made apparently robust returns over the fiveyears 2001/02 to 2005/06. Subject to the limitations, the following charts show thedistribution of these institutions according to the percentage of gross internal area(GIA), which is classified as either new or refurbished (groups A and B).58

Chart 17Percentage of nonresidentialaccommodationclassified as new orrefurbished, 2001/02100%90%80%70%60%50%40%30%20%10%0%Median = 67%Chart 18Percentage of nonresidentialaccommodationclassified as new orrefurbished, 2005/06100%90%80%70%60%50%40%30%20%10%0%Median = 70%196 Charts 17 and 18 show a clear increase over the five years in 2001/02-2005/06 in thenumbers of institutions reporting the estate to be in good condition.Endowments197 Institutional finance returns report on the level of financial assets in the form ofendowments. While these are, overall, comparatively small in terms of the overallbalance sheet of universities, they are potentially important as institutions seek todiversify their income streams in the future.198 Charts 19 and 20 show the change in the number of institutions holding endowmentassets at particular levels in 2002/03 and again in 2006/07.Universities UKPatterns of higher education institutions in the UK: Eighth report59

Chart 19Histogram showinginstitutions’endowments assets,£K, 2002/03504030201000 1000 10000 50000 100000 500000 MoreChart 20Histogram showinginstitutions’endowments assets,£K, 2006/07504030201000 1000 10000 50000 100000 500000 More199 We see here a movement towards the upper end of the chart. There are moreinstitutions with endowment assets in excess of £100 million and between £50 millionand £100 million than was the case five years ago, providing some evidence to suggestthat institutions are being increasingly successful in raising endowment income.Liquidity and borrowing200 We now turn to the relationship between assets and liabilities in institutions’ finances.201 The days of net liquid assets to total expenditure, is an indicator of liquidity; charts 21and 22 shows the institutional distribution in 2002/03 and in 2006/07.60

Liquidity ratioChart 21Days of net liquidassets to totalexpenditure lessdepreciation,2002/03400350300250200150100500-50Median = 45 daysChart 22Days of net liquidassets to totalexpenditure lessdepreciation,2006/07400350300250200150100500-50Median = 55 days202 Although the two charts are of broadly similar shape, it is clear that the overall positionis more positive in the most recent year, as the median has increased from 45 days in2002/03 to 55 days in 2006/07.Borrowing203 Chart 23 shows the institutional distribution of long-term borrowing as a percentage oftotal income in 2006/07.Universities UKPatterns of higher education institutions in the UK: Eighth report61

Chart 23Long-termborrowing as apercentage of totalincome, 2006/07806040Median = 14%200204 There is a very wide range here, with several institutions reporting no borrowing, whileothers show a considerable level of debt. More details are given, together with a fiveyearcomparison, in the following two histograms.Chart 24Histograms showingborrowing as apercentage ofincome, 2002/03 and2006/07504030Borrowing as percentage of income, 2002/03 Borrowing as percentage of income , 2006/0750403020201010000 10 20 30 40 More 0 10 20 30 40 More205 Chart 24 shows that while a minority of institutions record no long-term borrowing, thenumber recording borrowings of up to 10 per cent of income has increased. However,fewer institutions are now borrowing over 20 per cent of income.206 In absolute terms, long-term borrowing across the sector increased from £3.1 billion in2002/03 to £4.2 billion in 2006/07. When adjusted for inflation, the real-terms increasewas 24 per cent.207 The two histograms in chart 25 show the distribution of long-term borrowing acrossinstitutions in the years 2002/03 and 2006/07, adjusted to 2006/07 price levels using theGDP deflator.62

Chart 25Histograms showinginstitutionaldistribution ofabsolute borrowing(£K), 2002/03 and2006/07806040Absolute borrowing, 2002/03 Absolute borrowing , 2006/078060402020000 1,000 10,000 40,000 100,000 More 0 1,000 10,000 40,000 100,000 More208 While the figures at the lower end of the charts are broadly similar, it is clear that therehas been a shift towards the higher level of borrowings, especially in the range over£100 million.209 Chart 26 shows the change in annual servicing costs, expressed as a percentage ofincome, between 2002/03 and 2006/07.Chart 26Increase/decrease ininterest payments aspercentage ofincome, 2002/03 to2006/07210-1-2-3-4210 A complex picture is presented here. As we have noted, an increase in the number ofinstitutions borrowing up to ten per cent of income has been accompanied by areduction in those borrowing over twenty per cent. The costs of servicing the borrowinghave similarly changed over time, and are no doubt related to the timescales associatedwith the borrowing. Broadly, there is an even balance between those institutions whichhave experienced an increase in their interest charges and those which have seen adecrease.Surpluses and deficits211 This section addresses the question of institutions’ surpluses and deficits. Institutionsneed adequate surpluses for investment to ensure their long term sustainability.Ratio of surplus/(deficit) to total income212 Consideration of the surplus or deficit of individual institutions in a single year is not auseful approach here, and therefore, the following table shows both the average surplusafter tax and the number of institutions across the whole sector which recorded a deficit.Universities UKPatterns of higher education institutions in the UK: Eighth report63

Table 15Surpluses anddeficits recordedannually between2002/03 and 2006/072002/03 2003/04 2004/05 2005/06 2006/07Average surplus/deficit (percentage) 2.42 3.13 2.88 3.28 2.93Number of institutions recording deficit 29 27 29 29 23213 While the average surplus/deficit has increased slightly over the period, the number ofinstitutions recording a deficit in each year has been broadly the same, except in themost recent year. The institutional distribution of the average surplus/deficit as apercentage of total income over the five years is shown in the following distributionchart.Chart 27Average percentageratio of historicalsurplus/(deficit)after tax to totalincome, 2002/03 to2006/07151296Median =2.46%30-3-6214 It is clear that the average surplus of higher education institutions over the last fiveyears from 2002/30 to 2006/07 has been less than the 3 to 5 per cent that would beneeded to maintain sustainable investment.Return on net assets215 To show the relationship between the outturn and the asset base, table 16 gives thepercentage return on net assets for the sector as a whole.Table 16Percentage return onnet assets, 2002/03to 2006/072002/03 2003/04 2004/05 2005/06 2006/07Average return on net assets 1.5% 2.6% 1.6% 2.5% 2.2%216 The institutional spread of the return on net assets in the most recent year is given inthe final chart.64

Chart 28Percentage return onnet assets, 2006/0735%30%25%20%15%10%5%0%-5%-10%-15%Median = 1.4%Conclusion217 This report has been prepared as the latest in a series of yearbooks about highereducation in the UK in order to meet the expressed wishes of the higher educationsector, through Universities UK and GuildHE. It has expanded the data contained in itsprevious Patterns reports, as a basis for subsequent comparisons.218 It is hoped that it will also be of interest to a wider audience, as setting out a range offacts, trends and ratios for the universities and colleges in the United Kingdom.Universities UKPatterns of higher education institutions in the UK: Eighth report65

AppendicesAppendix 1: Total enrolments by subject of study, 1997/98 and 2006/07Appendix 2: Enrolments of students from outside the UK, by country and level of study,2006/07Appendix 3: Trends in sources of income to higher education institutions, 2000/01,2005/06 and 2006/07Appendix 4: Mergers within the higher education sector, 1994/95-2006/07Appendix 5: HESA cost centres66

Appendix 1Total enrolments by subject of study, 1997/98 and 2006/07PercentageSubject group and subject 1997/98 Subject 2006/07 changeMedicine and dentistry 41,959 63,245 51%Pre-clinical medicine 12,037 Pre-clinical medicine 15,495 29%Pre-clinical dentistry 2,036 Pre-clinical dentistry 1,245 -39%Clinical medicine 24,574 Clinical medicine 39,980 63%Clinical dentistry 3,312 Clinical dentistry 5,830 76%Subjects allied to medicine 164,899 300,900 82%Anatomy and physiology 5,431 Anatomy, physiology and pathology 16,930 212%Pharmacology 3,464 Pharmacology, toxicology and pharmacy 21,675 81%Pharmacy 8,495Nutrition 1,915 Nutrition 5,845 205%Ophthalmics 2,293 Ophthalmics 3,290 43%Audiology 723 Aural and oral sciences 4,080 464%Nursing 100,640 Nursing 183,580 82%Medical technology 3,353 Medical technology 8,325 148%Complementary medicine 6,765Other medical subjects 37,918 Others in subjects allied to medicine 49,450 30%Biological sciences 96,337 164,215 70%Biology 23,100 Biology 27,580 19%Botany 950 Botany 775 -18%Zoology 3,581 Zoology 4,040 13%Genetics 2,134 Genetics 2,240 5%Microbiology 2,608 Microbiology 4,880 87%Sports science 30,835Molecular biology and biophysics 1,462 Molecular biology, biophysics and biochemistry 10,460 7%Biochemistry 8,338Psychology (not solely as social science) 28,133 Psychology 72,475 99%Psychology (without significant element of biological science) 8,350Other biological sciences 15,665 Others in biological sciences 9,495 -39%Veterinary sciences 3,348 4,875 46%Agriculture and related subjects 15,184 16,085 6%Agriculture 9,080 Agriculture 7,295 -20%Forestry 731 Forestry 790 8%Food science 2,888 Food and beverage studies 2,650 -8%Agricultural sciences 524 Agricultural sciences 360 -31%Animal science 3,220Other agricultural subjects 1,926 Others in veterinary sciences, agricultureand related subjects 1,770 -8%Physical sciences 72,285 83,905 16%Chemistry 22,010 Chemistry 19,585 -11%Materials science 471 Materials science 650 38%Physics 13,982 Physics 14,935 7%Archaeology as a physical science 2,134 Forensic and archaeological science 9,115 327%Astronomy 1,069 Astronomy 2,950 176%Geology 6,226 Geology 9,145 47%Universities UKPatterns of higher education institutions in the UK: Eighth report67

PercentageSubject group and subject 1997/98 Subject 2006/07 changeOceanography 724 Ocean sciences 1,265 75%Geography studies as a science 9,844 Physical and terrestrial geographicaland environmental sciences 20,530 6%Environmental science and other physical sciences 13,995Others in physical sciences 4,695Mathematical sciences 21,184 33,790 60%Mathematics 16,801 Mathematics 28,590 70%Operational research 703 Operational research 795 13%Statistics 2,419 Statistics 3,550 47%Computer science 77,987 106,910 37%Computing science 77,987 Computer science 72,810Information systems 26,615Software engineering 6,200Engineering and technology 130,926 140,580 7%General engineering 17,027 General engineering 21,665 27%Civil engineering 17,319 Civil engineering 22,115 28%Mechanical engineering 21,983 Mechanical engineering 22,600 3%Aeronautical engineering 4,311 Aerospace engineering 8,220 91%Electrical engineering 6,990 Electronic and electrical engineering 32,345 11%Electronic engineering 22,229Production engineering 11,908 Production and manufacturing engineering 6,850 -42%Chemical engineering 6,237 Chemical, process and energy engineering 6,845 10%Minerals technology 799 Minerals technology 205 -74%Metallurgy 844 Metallurgy 670 -21%Ceramics and glasses 228 Ceramics and glasses 120 -47%Polymers and textiles 4,197 Polymers and textiles 2,710 -35%Other materials technology 2,815 Materials technology not otherwise specified 2,935 4%Maritime technology 2,412 Maritime technology 1,455 -40%Biotechnology 727 Industrial biotechnology 205 -72%Other technologies 2,474 Others in technology 9,570 287%Architecture, building and planning 45,002 60,525 34%Architecture 13,406 Architecture 20,295 51%Building 18,696 Building 23,990 28%Environmental technologies 2,405Landscape design 1,880Town and country planning 9,900 Planning (urban, rural and regional) 12,080 22%Other architectural studies 595 Others in architecture, building and planning 2,265Social studies 122,390 201,720 65%Economics 21,789 Economics 30,225 39%Politics 17,703 Politics 32,760 85%Sociology 22,816 Sociology 32,845 44%Social policy and administration 8,600 Social policy 12,870 50%Social work 27,263 Social work 59,190 117%Anthropology 3,657 Anthropology 4,930 35%68

PercentageSubject group and subject 1997/98 Subject 2006/07 changeGeography (unless solely as a physical science) 7,894 Human and social geography 13,325 69%Other social studies 12,668 Others in social studies 14,270 13%Law 57,441 90,845 58%Law by area 33,065Law by topic 52,945Others in law 2,955Business and administrative studies 222,137 310,255 40%Business and management studies 133,925 Business studies 125,520 50%Management studies 74,810Financial management 9,199 Finance 20,690 125%Accountancy 23,508 Accounting 31,310 33%Marketing and market research 13,119 Marketing 23,895 82%Industrial relations 10,869Human resource management 16,325Catering and institutional management 18,928Land and property management 2,922Transport, other business and admin studies 3,081Office skills 1,240Tourism, transport and travel 13,590Others in business and administrative studies 2,450Mass communications and documentation 20,718 47,935 131%Librarianship 1,161 Information services 5,360 1%Information science 4,172Communication studies 5,094 Publicity studies 4,075 -20%Media studies 6,873 Media studies 27,225 296%Publishing 343 Publishing 1,145 234%Journalism 2,575 Journalism 8,955 248%Languages 91,989 139,715 52%Linguistics 4,128 Linguistics 5,820 41%Comparative literature 2,902 Comparative literary studies 1,900 -35%English 30,747 English studies 60,310 96%Celtic languages, literature and culture 1,095 Celtic studies 3,640 232%Latin language and literature 145 Latin studies 265 83%Ancient Greek language and literature 140 Classical Greek studies 165 18%Classics 2,596 Classical studies 4,730 82%Other ancient languages and related studies 491 Others in linguistics, classics and related subjects 2,215 351%French language, literature and culture 6,994 French studies 12,975 86%German language, literature and culture 2,923 German studies 5,590 91%Italian language, literature and culture 1,432 Italian studies 3,585 150%Spanish language, literature and culture 2,657 Spanish studies 10,530 296%Portuguese language, literature and culture 197 Portuguese studies 675 243%Latin American languages, literature and culture 406Scandinavian languages, literature and culture 496 Scandinavian studies 455 -8%Russian languages, literature and culture 991 Russian and East European studies 2,160 118%Universities UK Patterns of higher education institutions in the UK: Eighth report 69

PercentageSubject group and subject 1997/98 Subject 2006/07 changeSlavonic and East European languages, literature and culture 493 -100%Other European languages, literature and culture 4,885 Others in European languages, literatureand related subjects 12,200 150%Chinese languages, literature and culture 641 Chinese studies 1,665 160%Japanese languages, literature and culture 784 Japanese studies 1,720 119%Other Asian languages, literature and culture 304 South Asian studies 360 18%Other Asian studies 260African languages, literature and culture 165 African studies 250 52%Modern Middle Eastern languages, literature and culture 1,110 Modern Middle Eastern studies 2,020 82%American studies 2,679 American studies 3,580 34%African languages, literature and culture 165 Australasian studies 35 -79%Historical and philosophical studies 61,288 103,215 68%History 27,468 History by period 41,015 57%History by area 2,140Economic and social history 1,540 History by topic 12,500 28%History of art 7,849History and philosophy of science 348Archaeology 4,126 Archaeology 7,250 76%Philosophy 6,031 Philosophy 11,885 97%Theology and religious studies 10,009 Theology and religious studies 17,255 72%Other humanities 1,823 Others in historical and philosophical studies 10,570 480%Creative arts and design 93,650 160,525 71%Fine art 15,161 Fine art 20,185 33%Design studies 42,819 Design studies 59,345 39%Music 13,377 Music 25,560 91%Drama 11,172 Drama 20,915 120%Dance 3,645Cinematics 4,057 Cinematics and photography 16,055 296%Crafts 343 Crafts 1,555 353%Imaginative writing 6,465Art and design other 5,500 Others in creative arts and design 6,760 23%Education 135,416 216,330 60%Teacher training 66,369 Training teachers 94,340 42%Research and study skills in education 3,670Academic studies in education 27,339 Academic studies in education 87,210Techniques in teaching children 1,272Techniques in teaching adults 10,596Education for those with special needs 4,430Technology in education 673Management and organisation of education 3,870Other topics in education 14,460 Others in education 31,035 115%70

Appendix 2Enrolments of students from outside the UK, by country and level of study, 2006/07DomicileFirst degree TotalPostgrauduatedegree Otherundergraduate (research)Postgraduatedegree(taught)Postgrauduatedegree Otherpostgraduate (research)OtherpostgraduateFirst degreeOtherundergraduate TotalTotal non-UK domiciled 351,470 135,195 50,460 32,030120,25550,460 13,530 135,195 13,530 351,470 32,030European Union countries excluding UK 112,260 51,840 15,450 12,39527,70515,450 4,870 51,840 4,870 112,260 12,395Austria 1,430 675 255 130310255 60 675 601,430 130Belgium 2,560 1,510 310 165490310 85 1,510 852,560 165Cyprus 8,710 5,580 565 3152,130565 125 5,580 1258,710 315Czech Republic 1,150 670 100 140215100 25 670 251,150 140Denmark 1,565 645 245 140435245 105 105 645 1,565 140Estonia 535 350 35 8065355 350 5535 80Finland 1,700 1,095 195 110245195 55 1,095 551,700 110France 13,070 5,930 1,330 2,3952,9401,330 475 5,930 475 13,0702,395Germany 14,010 6,050 2,525 1,8703,1202,525 450 6,050 450 14,0101,870Gibraltar 635 475 15 405515 45 475 45635 40Greece 16,050 4,890 3,085 5657,0953,085 415 4,890 415 16,050 565Hungary 1,040 540 145 135185145 35 540 351,040 135Republic of Ireland 16,255 7,600 1,235 2,1253,5251,235 1,765 1,765 7,600 16,2552,125Italy 5,990 1,755 1,845 5951,4901,845 305 1,755 3055,990 595Latvia 880 610 30 8514530 10 610 880 85Lithuania 1,485 1,150 105 40 17040 15 1,150 151,485 105Luxembourg 880 585 95 3514595 15 585 15880 35Malta 815 190 195 30360195 40 190 40815 30The Netherlands 2,810 1,020 490 220920490 160 1,020 1602,810 220Poland 6,770 3,900 550 9201,270550 130 3,900 1306,770 920Portugal 3,010 1,355 855 215515855 75 1,355 753,010 215Slovak Republic 890 615 105 60 10060 20 615 20890 105Slovenia 285 90 65 309065 10 10 90 285 30Spain 6,350 2,385 1,605 845 1,170845 345 2,385 3456,3501,605Sweden 3,380 2,175 340 245515340 105 2,175 1053,380 245European Union 2007 accession countries 1,450 510 325 190355325 65 510 651,450 190Bulgaria 710 325 125 65170125325 710 65Romania 740 185 205 125185205 40 185 40740 125Other European Economic Area countries 3,420 1,895 260 230955260 85 1,895 853,420 230Iceland 390 75 1019575 20 20 90 390 10Liechtenstein 155 5005515 0Norway 3,015 1,795 185 220760185 60 1,795 603,015 220Other Europe 8,620 3,150 1,370 6253,1051,3703,150 3708,620 625Albania 240 105 30 257030 15 105 15240 25Croatia 250 55 65 1010065 15 15 55 250 10Russia 2,580 1,125 305 190870305 90 1,125 902,580 190Serbia and Montenegro 340 90 105 20115105 10 10 90 340 20Switzerland 1,895 800 300 125540300 135 135 800 1,895 125Turkey 2,235 545 390 1901,055390 55 545 552,235 190Ukraine 495 180 80 3018580 20 180 20495 30Other countries not listed 585 245 100 40170100 30 245 30585 40Universities UKPatterns of higher education institutions in the UK: Eighth report71

DomicileFirst degree TotalPostgrauduatedegree Otherundergraduate (research)Postgraduatedegree(taught)Postgrauduatedegree Otherpostgraduate (research)OtherpostgraduateFirst degreeOtherundergraduate TotalAfrica 11,595 33,355 3,185 4,185 12,6951,700 4,18511,595 1,70033,355 3,185Algeria 475 100 175 15125175 60 100 60475 15Angola 255 170 455 35051700255 45Botswana 630 385 35 65 13015 65385 15630 35Cameroon 465 155 5018525 50155 25465 50Egypt 1,205 140 685 25265685140 851,205 25Ethiopia 230 45 10 40 12015 4015 45 230 10Gambia 355 180 35 15 11515180 15355Ghana 2,675 565 210 345 1,415140 345140 565 2,675 210Kenya 2,760 1,540 145 200 790200 80 1,540 802,760 145Libya 1,685 95 140 650 720650 80 80 95 1,685 140Malawi 580 190 45 80 24030 80190 30580 45Mauritius 1,885 1,160 180 90 38080 901,160 801,885 180Morocco 210 75 25 30 7530 5 755210 25Nigeria 11,135 3,550 720 775 5,440650 7753,550 65011,135 720Seychelles 160 100 5455100 51605Sierra Leone 265 85 45 30 9020 3020 85 265 45South Africa 1,700 440 265 330 515150 330150 440 1,700 265Sudan 345 75 20 85 14020 8520 75 345 20Tanzania 1,050 420 100 70425100 30 420 301,050 70Uganda 910 290 100 55430100 40 290 40910 55Zambia 605 235 7019530 70235 30605 70Zimbabwe 2,475 1,040 785 140 440140 70 1,040 702,475 785Other countries not listed 1,295 555 190 115 380115 50 555 501,295 190Asia 142,555 53,220 16,710 9,09059,25516,710 4,275 53,220 4,275142,555 9,090Bangladesh 2,675 1,185 145 265 870210 2651,185 2102,675 145Brunei 1,205 865 90 50 18515 50865 151,205 90Burma 255 145 15 20 6510 20145 10255 15China (People's Republic of) 49,595 18,410 3,245 5,170 21,6201,150 5,17018,410 1,15049,595 3,245Hong Kong 9,640 6,660 450 720 1,410400 7206,660 4009,640 450India 23,835 4,080 1,380 1,985 15,5001,985 890 4,080 89023,835 1,380Indonesia 1,090 370 190 40465190 30 370 301,090 40Japan 5,705 2,050 915 820 1,715200 8202,050 2005,705 915Kazakhstan 875 390 120 35 30530 35390 30875 120Macao 205 100 10 15 8015 0 1000205 10Malaysia 11,810 7,710 1,880 3351,5751,880 310 7,710 31011,810 335Maldives 195 15 20 6520 5 955195 15Nepal 635 210 120 80 21020 80210 20635 120Pakistan 9,305 2,720 395 960 4,870365 9602,720 3659,305 395Philippines 825 175 445 55 13015 55175 15825 445Singapore 3,200 1,990 495 85555495 75 1,990 753,200 85South Korea 4,310 1,760 370 865 1,235865 80 1,760 804,310 370Sri Lanka 3,005 1,580 145 340 870340 70 1,580 703,005 145Taiwan 6,795 755 1,270 3604,2601,270 150 150 755 6,795 360Thailand 4,545 740 1,155 2052,2851,155 160 160 740 4,545 205Vietnam 1,685 860 195 500195 35 860 351,685 95Other countries not listed 1,160 375 115 130 485130 55 375 551,160 11572

Postgrauduate PostgraduatePostgrauduatedegree Otherdegreedegree OtherOtherOtherDomicileFirst degree Total undergraduate (research)(taught)postgraduate (research) postgraduateFirst degree undergraduate TotalAustralasia 2,495 440 395 695 715695 255 255 440 2,495 395Australia 1,770 325 295 470 500470 180 180 325 1,770 295New Zealand 575 205 70170205 60 60 75 575 70Other countries not listed 145 40 254525 10 10 40 145 25Middle East 16,120 5,415 1,205 4,275 4,6904,275 530 5,415 53016,120 1,205Bahrain 955 530 155 65200155 10 530 10955 65Iran 2,455 750 170 760 695760 80 750 802,455 170Iraq 330 55 40 85 14085 15 15 55 330 40Israel 890 190 415 25230415 25 190 25890 25Jordan 1,505 360 500 40565500 35 360 351,505 40Kuwait 1,165 560 265 85215265 40 560 401,165 85Lebanon 670 125 180 25330180 15 125 15670 25Oman 1,325 445 115 210 520210 35 445 351,325 115Qatar 600 315 100 65 10065 20 315 20600 100Saudi Arabia 3,250 870 1,000 3659001,000 115 115 870 3,250 365Syria 570 50 295 25185295 10 10 50 570 25United Arab Emirates 2,220 1,085 130 320 555320 130 1,085 1302,220 130Yemen 195 80 20 35 5535 10 10 80 195 20Other countries not listed 0 00000North America 25,495 5,850 4,210 5,925 8,5355,925 985 5,850 98525,495 4,210Bahamas 240 140 105510 25 140 25240 10Barbados 415 180 20 35 16535 15 180 15415 20Bermuda 220 145 20 15 3015 10 145 1022020Canada 5,010 1,315 1,300 2651,8451,300 285 1,315 2855,010 265Jamaica 805 300 90 95 27095 50 300 50805 90Mexico 1,665 120 105 875 530875 30 120 301,665 105St Lucia 155 85 1050105 85 5155 10United States 15,955 3,120 3,620 3,480 5,2503,480 490 3,120 49015,955 3,620Other countries not listed 1,030 445 110 70335110 75 445 751,030 70South America 4,460 970 1,060 3501,7701,060 305 305 970 4,460 350Argentina 340 45 120 15105120 55 55 45 340 15Brazil 1,315 220 120 385 540385 50 220 501,315 120Chile 380 20 175 15160175 15 15 20 380 15Colombia 550 60 135 55290135 10 10 60 550Peru 225 50 10 45 11045 10 10 50 225 10Trinidad and Tobago 880 390 90 55 26055 90 390 880 90Venezuela 350 65 15 70 13570 60 60 65 350 15Other countries not listed 425 120 35 75 17075 20 120 425 35Universities UK Patterns of higher education institutions in the UK: Eighth report 73

Appendix 3Trends in sources of income to higher education institutions, 2000/01, 2005/06 and2006/07The following tables shows the sources of income to higher education institutions2000/01 UK England Wales ScotlandNorthernIrelandFunding council grantsa Grants for higher educationprovision (including furthereducation in Scotland) i Recurrent (teaching) 3,805,637 3,029,040 213,593 463,603 99,401ii Recurrent (research) 1,070,580 880,125 46,294 118,792 25,369Other higher education grants 408,526 322,265 23,884 50,118 12,259b Grants for further educationprovision 71,034 68,455 2,579Total funding council grants 5,355,777 4,299,885 286,350 632,513 137,029Tuition fees and education grants and contracts1 Higher education course fees a Home and EU domicile students 2013648 1686126 101806 180555 45161b Non-EU domicile students 746,366 648,976 23,851 68,502 5,037Total higher education course fees 2,760,014 2,335,102 125,657 249,057 50,1982 Non-credit-bearing course fees 236,782 209,252 4,715 20,697 2,1183 Further education course fees 26,416 25,975 90 3514 Research training support grants 25,367 19,036 800 5,263 268Total tuition fees and educationgrants and contracts 3,048,579 2,589,365 131,262 275,368 52,584Total research grants and contracts 2,207,228 1,812,384 78,807 278,265 37,772Other incomea Other services rendered 652,262 506,803 50,233 83,378 11,848b Residences and catering operations (including conferences) 925,602 771,461 50,966 93,965 9,210c Grants from local authorities 10,606 10,521 85d Income from health andhospital authorities (excluding teaching contracts) 200,225 175,523 5,043 14,678 4,981e Released of deferred capital grants 45,655 37,261 649 7,745f Income from intellectualproperty rights 17,828 7,413 3,478 6,906 31g Other operating income 737,770 612,080 21,654 89,480 14,556Total other income 2,589,948 2,121,062 132,108 296,152 40,626Total endowment and investment income 292,387 245,949 12,533 30,948 2,957Total income 13,493,919 11,068,645 641,060 1,513,246 270,968In 2000/01, 2005/06 and 2006/07 (expressed as £thousand in cash terms).74

2005/06 UK England Wales ScotlandNorthernIrelandFunding council grantsa Grants for higher educationprovision (including furthereducation in Scotland) i Recurrent (teaching) 4,992,550 4,023,079 256,924 582,395 130,152ii Recurrent (research) 1,543,826 1,250,423 63,877 187,050 42,476Other higher education grants 897,744 740,887 52,710 85,540 18,607b Grants for further education provision 109,958 106,656 3,302Total funding council grants 7,544,078 6,121,045 376,813 854,985 191,235Tuition fees and education grants and contracts1 HE course feesa Home and EU domicile students 2718486 2279096 137307 246066 56017b Non-EU domicile students 1,499,348 1,297,178 50,194 143,896 8,080Total HE course fees 4,217,834 3,576,274 187,501 389,962 64,0972 Non-credit-bearing course fees 314,601 277,917 8,531 26,623 1,5303 FE course fees 23,035 22,589 218 2284 Research training support grants 85,329 64,388 3,149 17,772 20Total tuition fees and educationgrants and contracts 4,640,799 3,941,168 199,399 434,585 65,647Total research grants and contracts 3120606 2540013 121321 389220 70052Other incomea Other services rendered 1,212,366 1,009,779 92,678 92,974 16,935b Residences and catering operations (including conferences) 1,162,244 973,136 60,045 115,562 13,501c Grants from local authorities 2,446 2,357 82 7d Income from health andhospital authorities (excluding teaching contracts) 313,575 256,136 15,654 20,191 21,594e Released of deferred capital grants 87,375 72,344 2,799 11,196 1,036f Income from intellectualproperty rights 30,815 24,325 1,425 4,976 89g Other operating income 1,045,725 885,748 32,313 105,414 22,250Total other income 3,854,546 3,223,825 204,996 350,320 75,405Total endowment and investment income 343,083 288,917 15,013 35,226 3,927Total income 19,503,112 16,114,968 917,542 2,064,336 406,266Universities UKPatterns of higher education institutions in the UK: Eighth report75

2006/07 UK England Wales ScotlandNorthernIrelandFunding council grantsa Grants for higher educationprovision (including furthereducation in Scotland) i Recurrent (teaching) 5,358,952 4,318,990 273,476 629,779 136,707ii Recurrent (research) 1,671,653 1,343,770 65,315 215,917 46,651Other higher education grants 887,679 689,684 83,571 97,003 17,421b Grants for further education provision 112,367 101,963 10,404 0 0Total funding council grants 8,030,651 6,454,407 432,766 942,699 200,779Tuition fees and education grants and contracts1 Higher education course fees a Home and EU domicile students 3,270,707 2,808,414 140,387 252,043 69,863b Non-EU domicile students 1,712,730 1,472,893 60,110 171,002 8,725Total higher education course fees 4,983,437 4,281,307 200,497 423,045 78,5882 Non-credit-bearing course fees 307,005 268,910 9,054 27,886 1,1553 Further education course fees 28,001 26,933 740 328 04 Research training support grants 95,542 71,923 4,704 18,885 30Total tuition fees and educationgrants and contracts 5,413,985 4,649,073 214,995 470,144 79,773Total research grants and contractsOther incomea Other services rendered 1,313,930 1,108,518 94,378 94,196 16,838b Residences and catering operations (including conferences) 1,233,005 1,034,152 59,402 125,661 13,790c Grants from local authorities 1,464 1,371 77 16 0d Income from health andhospital authorities (excluding teaching contracts) 330,040 274,921 15,745 20,405 18,969e Released of deferred capital grants 88,651 71,948 3,121 12,402 1,180f Income from intellectualproperty rights 33,871 27,548 1,702 4,611 10g Other operating income 1,076,424 898,293 35,542 114,245 28,344Total other income 4,077,385 3,416,751 209,967 371,536 79,131Total endowment and investment income 390,841 326,494 15,984 43,124 5,239Total income 21,289,853 17,591,618 1,005,046 2,258,574 434,61576

Appendix 4Mergers within the higher education sector, 1994/95–2006/07Unless otherwise stated, the merged institution assumed the name of the second named institution. Only publiclyfunded higher education institutions are included in this list.1994/1995Institute of Psychiatry (transition) and King’s College LondonWest London Institute of Higher Education and Brunel UniversityLondon Hospital Medical College and Queen Mary and Westfield CollegeSt Bartholomew’s Hospital Medical School and Queen Mary and Westfield CollegeThe Welsh Agricultural College and University College of Wales, AberystwythDuncan of Jordanstone College of Art and University of Dundee1995/1996Salford College of Technology and University of SalfordWinchester School of Art and University of SouthamptonCharlotte Mason and St Martin’s CollegeThe British Postgraduate Medical Federationincorporated into:Imperial College of Science, Technologyand Medicine, King’s College London,University College London andLondon University - Senate institutes1996/1997Institute of Psychiatry and King’s College LondonRoyal Postgraduate Medical School and Imperial College of Science, Technologyand MedicineCharing Cross and Westminster Medical School and Imperial College of Science, Technologyand MedicineLa Sainte Union College and University of SouthamptonColeg Normal and University College of North Wales, Bangor1998/1999Loughborough College of Art and Design and Loughborough UniversityUnited Medical and Dental School (UMDS) and King’s College LondonRoyal Free Hospital School of Medicine and University College LondonWesthill College (‘strategic alliance’) and University of BirminghamMoray House Institute of Education and University of EdinburghThe Scottish College of Textiles and Heriot-Watt University1999/2000St Andrew’s College of Education and University of GlasgowUniversities UKPatterns of higher education institutions in the UK: Eighth report77

2000/2001Westminster College Oxford and Oxford Brookes UniversityWye College and Imperial College of Science, Technologyand MedicineNorth Riding and University of HullCollege of Guidance Studies and Canterbury Christ Church University CollegeBretton Hall and University of LeedsHomerton College, Cambridge and University of Cambridge(partial merger)2001/2002London Guildhall University and University of North London, forming LondonMetropolitan UniversityNorthern College of Education and University of Aberdeen and University of Dundee2002/2003Northern School of Contemporary Dance and Conservatoire for Dance and Drama(Transfer of higher education provision.)2004/2005University of Manchester Institute ofScience and Technology and the Victoria University of Manchester, formingthe University of ManchesterKent Institute of Art and Design and The Surrey Institute of Art and Design, formingthe University College for the Creative ArtsThe University of Wales College of Medicine and Cardiff University2005/2006Wimbledon School of Art and University of the Arts LondonHomerton College and Anglia Ruskin University78

Appendix 5HESA cost centres(Excluding non-academic cost centres)01 Clinical medicine02 Clinical dentistry03 Veterinary science04 Anatomy and physiology05 Nursing and paramedical studies06 Health and community studies07 Psychology and behavioural sciences08 Pharmacy and pharmacology10 Biosciences11 Chemistry12 Physics13 Agriculture and forestry14 Earth, marine and environmental sciences16 General engineering17 Chemical engineering18 Mineral, metallurgy and materials engineering19 Civil engineering20 Electrical, electronic and computer engineering21 Mechanical, aero and production engineering23 Architecture, built environment and planning24 Mathematics25 IT and systems sciences, computer software engineering26 Catering and hospitality management27 Business and management studies28 Geography29 Social studies30 Media studies31 Humanities and language based studies33 Design and creative arts34 Education35 Modern languages37 Archaeology38 Sports science and leisure studies41 Continuing educationUniversities UKPatterns of higher education institutions in the UK: Eighth report79

About Universities UKThis publication has beenproduced by Universities UK,which is the representative bodyfor the executive heads of UKuniversities and is recognised asthe umbrella group for theuniversity sector. It works toadvance the interests ofuniversities and to spread goodpractice throughout the highereducation sector.Universities UKWoburn House20 Tavistock SquareLondonWC1H 9HQtelephone+44 (0)20 7419 4111fax+44 (0)20 7388 8649emailinfo@UniversitiesUK.ac.ukwebwww.UniversitiesUK.ac.uk© Universities UKISBN 978 1 84036 182 7September 2008