Capital funding is additional funding provided by the government to support sustainable investment in higher education.
It supports capital expenditure – that is, money used to acquire or maintain fixed assets, such as land, buildings and equipment, which is normally capitalised in the provider’s audited annual accounts. It does not include expenditure on rent, or hiring or leasing of equipment and facilities.
The capital funding available for distribution is specified in the guidance letter from the Secretary of State. For financial year 2021-22, this sum is £150 million.
From this, we are providing £19 million to meet existing commitments and support for national facilities and regulatory initiatives and the remaining balance in capital funding to providers registered with the OfS in the Approved (fee cap) category.
For 2021-22, we have introduced a new method of distributing capital funding. It will be distributed primarily through a bidding competition, but we are also making a small formulaic allocation to eligible providers in the Approved (fee cap) category.