Manchester University has been awarded the biggest increase in funding of any university in the country, according to figures released by the Higher Education Funding Council for England.

However, academics from Manchester Metropolitan University have found their research funding has been cut, so it's actually lower than it was five years ago.

Nationally, funding for universities and colleges for the 2002/2003 academic year has risen by 6.8 per cent. And the amount of funding allocated per student has risen from £4,500 to £4,700.

The money is allocated to institutions depending on the number of students and standards of academic research.

Manchester University's funding from HEFCE has risen by 8.6 per cent compared to last year, with a grant in excess of £100million, making it the biggest increase in funding awarded to any university across the country. Around £6.7million of the university's additional cash has been earmarked for research, and has been allocated in response to a research assessment exercise, which awarded 37 of the university's 46 subject areas top five or five star ratings.

Delighted

Sir Martin Harris, Manchester University's Vice Chancellor, said: ‘‘I am absolutely delighted with these figures which further confirm the university's position as a world-class research-led institution.

‘‘The increases are a fitting reward for the hard work that produced such impressive results in the research assessment exercise.

‘‘The real importance of this extra money is that it will enable the University Of Manchester to carry out even more leading-edge research and continue to provide excellent teaching to our students."

In contrast, funding for neighbouring UMIST - which could merge with Manchester University if proposals released this week are accepted by the two institutions' governing bodies - has risen by just 1.3 per cent, giving it a grant of £32,759,000. Manchester Metropolitan University - which has more students than any other university in Greater Manchester - has seen its overall grant rise by just 2.6 per cent to £67,159,000.

And academics at the institution are deeply disappointed that the element of income for research has actually gone down to £3,164,000.

That's the equivalent, they say, of just £3,000 for each academic actively involved in research and less than the funding they received five years ago.

Dissappointed

A spokesman for the university said: ‘‘We are very disappointed. Five years ago we were allocated £3.7million but now that's gone down to £3.1million.

‘‘We have only been a research institution for 10 years. We have made big strides and done more than was expected from us.

‘‘We have had an outstanding result in the research assessment exercise, but HEFCE has reneged on their promise.’’

In addition to funding from HEFCE, universities also receive grants from charities and businesses. Bosses at MMU say they are determined to ensure all their research continues by sourcing funding from elsewhere.

HEFCE increased its financial support for Salford University by four per cent to give a total grant of £53,945,000.

Sir Howard Newby, HEFCE chief executive, admitted more cash was needed to improve research. ‘‘We are committed to build on these excellent results which demonstrate higher levels of world class research - and will continue to argue strongly for additional funding,’’ he said.

Baroness Warwick, chief executive of Universities UK, believes the shortfall in research funding will be enormously damaging to morale in universities across the country.

She said: ‘‘Despite the overall investment in teaching and widening access there are real threats to jobs and research. This year's settlement will not be able to fund the pay of staff in universities.

‘‘The axe will cut deep across the university sector unless the government takes immediate action to fully fund the results of the latest research assessment exercise.’’