Some of England’s top universities look set to be forced into research cutbacks next year while newer institutions will see a marked rise in available funds, after individual budgets for all universities and colleges in England were published last week.

A number of “elite” institutions south of the border, including Cambridge, are set to receive funding increases below the current level of inflation, whilst leading research institutions such as Imperial College London and the University of Southampton have seen significant cuts in their research allocations for 2009-10.

Funding for research in 2009-10 is based on the results of the recent research assessment exercise (RAE), which for the first time used a graded system rather than a single mark, as was previously the case.

The report from the Higher Education Funding Council for England (HEFCE) confirmed that a number of universities established in the last 20 years will receive sizable increases in their funding as of next year.

Pam Tatlow, Chief Executive of the Million+ group, which represents 24 English universities established since 1992, said the allocation of funding was fair, and would help foster a broader academic community. She said: “Post-92 universities have paid back with abundance the very modest levels of research funding awarded in the past by establishing centres of internationally excellent and world-leading research.”

“By rewarding excellent research wherever it has been found, this settlement will boost innovation and deliver better access for business and the public sector to the research throughout the country.”

There has been some concern that leading research universities will be forced to make sizable cuts following the announcement, with the London School of Economics and Political Science facing a 13 per cent drop in funds available for research in 2009-10. A spokesperson for LSE said that they found the results “disappointing.”

A total of £1.6 billion will go towards research in English institutions, while £4.8 billion has been earmarked for teaching.

Professor David Eastwood, Chief Executive of HEFCE, said: "This represents a good settlement for universities and colleges. It also represents a crucial investment in developing people and ideas, and provides a major step in helping the country through and beyond the current recession.”

While Million+ member universities will see a cumulative 120 per cent increase in funding in 2009-10, members of the Russell Group, which represents 15 of England’s top research-intensive universities, together face a more modest increase of 3.3 per cent. Of those 15 Russell Group members in England, only six will receive overall funding increases that meet the current level of inflation.

However, Russell Group members still account for nearly a third of all funding in England, with Imperial College London, Oxford, Cambridge and UCL alone taking up more than a quarter of the overall budget for the country. Furthermore, the two universities which will see the greatest increase research funding, Oxford and Nottingham, also belong to the group.

Director General of the Russell Group, Dr Wendy Piatt said that she believes that the group’s members will continue to dominate research in England. She said: “Our institutions will continue to drive the UK’s reputation for high-quality research and continue to bring considerable economic and social benefits to the UK. Now, more than ever, our research-intensive universities have a crucial role to play in helping the UK survive the economic downturn and stimulate a recovery, and it is vital that they are given the right conditions to continue to flourish.”

However, she added: “In the current climate there is likely to be increased pressure on finances, with vital income from charities and business squeezed; revenue from international students volatile, and costs for people, energy and borrowing soaring. This settlement does not go far enough for many of our leading research-intensive universities to meet these tough challenges.

The funding breakdown will also mean a move towards research in a number of new areas. Media studies will see funds increased by over 155 per cent, whilst funding for performance arts will rise 66 per cent.

Language studies are amongst the worst hit, with research funding for French falling 37.9 per cent and Italian 28.8 per cent. Accounting and Finance funding will be reduced by over 60 per cent.Tradtional science subjects were ringfenced to ensure adequate funding

However, Prof Eastwood said that appropriate measures were taken to ensure that changes would be manageable: “The 2008 RAE provides the major reason for the significant variations in funding levels between 2008-09 and 2009-10. To enable institutions to manage changes in funding levels we are providing £24 million in moderation funding so no institution sees a reduction in cash terms compared with the equivalent unmoderated figure for 2008-09.”

He added: “Although this settlement provides universities and colleges with resources to help weather the economic downturn, they still face longer-term, difficult challenges and will need to plan prudently and invest selectively.”

“I am confident that through the exceptional contribution they are making to the country's wellbeing and future prosperity they will remain a priority for public investment, enabling them to emerge from the recession with a strong sense of purpose and direction.”

Last week's results have no bearing on Scottish universities. The Scottish Funding Council will announce its allocations for funding on 2 April.