University of Lincoln’s teaching budget has been reportedly cut with over £0.5 million following new plans to save money starting September.

The £501,768 teaching grants cut represents a 1.36 per cent drop from the university’s teaching budget and has been enforced by the Higher Education Funding Council for England (HEFCE).

University of Lincoln Pro Vice Chancellor Scott Davidson told the Lincolnshire Echo on Tuesday that plans have been put in place to deal with the reduced budget.

However the paper emphasises that the university made no reassurances that jobs would not be lost. The University of Lincoln also said that it anticipated the cuts enforced by HEFCE.

The news comes as plans to raise tuition fees up to £7,000 a year are being developed by both Labour and the Conservatives, according to a Times report.

In related news, the Telegraph reported last week that only a further 10,000 students would be admitted in September after an extra 52,000 people applied to university this year despite warnings of job shortages in the recession.