Unnoticed savings at universities will affect the economic growth and development of companies
The Danish business community is calling for qualified and highly educated labour to generate economic growth. However, there is currently great uncertainty surrounding the future of business and social science degree programmes, which are major labour suppliers to the private sector.
Facts about the rate-1 increase
The rate-1 increase was introduced in 2010 when a review by the consultancy firm McKinsey in the preceding year had shown that degree programmes in business, social sciences and humanities were underfunded in relation to other university programmes. This meant that the programmes had relatively few classroom hours, large class sizes, limited feedback and a larger proportion of none-research-active teaching staff (part-time academic staff). The rate-1 increase totalled DKK 5,000 (2010 prices) per student full-time equivalent and has since been used to increase classroom hours and improve research coverage on the affected programmes. The most recent extension of the rate-1 increase was set by the 2020 Finance Act and expired at the end of the 2022. The 2023 Finance Act has not yet been adopted. Thus, there is now uncertainty regarding the university budgets for 2023 and onwards.
This was the topic of an editorial published in the Danish newspaper Børsen on Thursday 26 January 2023, written by Rector Nikolaj Malchow-Møller from CBS and Dean Thomas Pallesen from Aarhus BSS.
In the midst of the current political debate on improving the healthcare sector and ensuring funding for defence, there is a risk that politicians will unwittingly damage the private sector, which brings in the money.
At the moment, business and social science programmes are in limbo as to whether the 2023 Finance Act will give them the funds they need to educate qualified employees for the business sector of the future.
Risk of a DKK 100 million shortfall in 2023
Copenhagen Business School (CBS) and Aarhus BSS are looking at a shortfall of DKK 100 million this year if politicians decide to not extend the so-called rate-1 increase introduced in 2010.
Together, CBS and Aarhus BSS educate 35,000 students. Our graduates are among the most sought-after in the labour market. They have low unemployment rates, they receive high salaries and they are in demand to deal with the major challenges facing society with the green transition and the need for increased innovation and productivity. It would therefore be extremely unwise to reduce the quality of their study programmes, and this will happen if the rate-1 increase isn’t extended. If the cutback is implemented, it will reduce classroom hours and limit the research that the teaching is based on.
Don’t forget business programmes in the 2023 Finance Act
Our demands aren’t exorbitant. Even with an unchanged grant, the cost of our study programmes per student will be significantly lower than technical and natural science degree programmes.
Which is why we are making this appeal to the government and our new minister: Remember the business sector, economic growth and business and social science degree programmes in the upcoming Finance Act.
Read the article in Børsen (Danish)
Contacts
Press relations – Aarhus BSS, Aarhus University
Tlf:+45 9352 2444
presse.bss@au.dk
Press contact – Copenhagen Business School, Executive Support and Communications
Tlf:+45 41852616
press@cbs.dk
https://www.cbs.dk/pressen/pressekontakt