TUITION fees at Leeds Metropolitan University are to rise by more than 60 per cent after governors voted to end an era which had seen it charge the lowest fees in the country.
Leeds Met in crisis: Full coverage »Fees will rise from £2,000 to £3,312 a year from 2010/11 in a move the university says will eventually generate an additional £10m in revenue. The move comes against a backdrop of job losses at Leeds Met which revealed it was facing a forecast deficit of between £6m and £7m for the next academic year.
The low fees policy was introduced and championed by controversial outgoing vice-chancellor Simon Lee and had resulted in a big increase in applications to the university.
Mr Lee resigned at the turn of the year amid allegations of bullying, which he denied. He said the real reason for his departure was an internal struggle over the fees policy.
Since then, Leeds Met has been the focus of a Yorkshire Post investigation into alleged financial excess, which studied a lack of adequate spending controls and hugely expensive ventures with professional sports clubs.
The university has denied its spending regime has adversely affected its finances and said a Government cut in spending was hitting universities across the country.
A spokesman said: "Governors at Leeds Metropolitan University have made a unanimous decision to increase fees to the level charged by almost all other universities, which will be £3,312 for full-time undergraduates for 2010/11. This does not affect current students and will apply to new students who start courses in 2010/11.
"Our fees have remained static for four years but now must increase to the same level as every other university in Yorkshire so we are on a level playing field. This will enable us to generate extra revenue, following caps in funding by the Government."
To offset the increase, the university is to introduce a bursary scheme which will apply to every new full-time student who is eligible for a maintenance grant. It would benefit an estimated 40 per cent of its intake.
Leeds Met students' union associate president Will Watson described the news as a "mixed bag", with much riding on how effective the bursary scheme would be.
Asked about job cuts, the Leeds Met spokesman said staff costs are 63 per cent of revenue, three per cent above higher education's average of 60 per cent, and the university was looking to save around £3m. "There has been good initial take-up of the offer of voluntary redund-ancy/early retirement."
