BBC News: University's 'future in doubt'

BBC coverage of our story:

MPs have warned that the future of a university is in doubt as it faces the repayment of over £50m, after an audit found "incorrect data" on students.

London Metropolitan University has admitted that this puts more than 300 jobs at risk - and unions are planning a campus protest on Wednesday.

The funding council says the deduction of income follows an audit showing inaccurate reporting of drop-out rates.

A university leader says there could be further cases of such "gotcha audits".

The audits have been carried out by the Higher Education Funding Council for England (Hefce) - which found discrepancies in the figures showing the number of students who had not completed courses.

'Substantial overfunding'

The "incorrect data" meant that there had been "substantial overfunding" of London Metropolitan since 2005.

The University and College Union says that for London Metropolitan University, attended by 34,000 students, this will mean "unprecedented cuts" which would threaten course closures.

In an early day motion, MPs say that the university faces the loss of £56m - an £18m reduction in teaching budgets and £38m in claw-backs for previous years.

"This scale of cuts throws the future viability of the university into doubt at a time when education and training are vital to the capital's economic health," says the motion before the House of Commons.

The university says that the teaching budget loss will be £15m - and that the retrospective reductions will be "substantial".

Hefce says that there are negotiations over a repayment schedule, with a meeting set for next month.

'Perverse'

The University and College Union and the National Union of Students are to stage a protest outside a meeting of the university's governors on Wednesday. ...

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http://news.bbc.co.uk/1/hi/education/7853203.stm