Welsh universities will see a real-terms cut to their annual baseline funding.

This week, the Higher Education Funding Council for Wales announced allocations of ?433.8 million for 2009-10. The figure includes more than ?80 million for research on the back of the 2008 research assessment exercise and more than ?0 million for teaching.

Compared with the previous year, total funding increased by 0.43 per cent in cash terms, but this equates to a 1 per cent drop when inflation, standing at 1.5 per cent according to the HEFCW, is factored in.

A separate ?34.6 million has been provided to support the Welsh Assembly Government's higher education strategies.

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Philip Gummett, chief executive of the HEFCW, said: "Within this (financial) context, we are pleased to see continued substantial public investment in higher education."

The overall results mask dramatic changes to the funding landscape caused by the 2008 RAE - the first appraisal of Welsh universities' research strengths in seven years. Overall, research funding has risen 4 per cent, an increase half as big as the 8 per cent rise awarded to English universities.

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As in England, there are big percentage gains for modern institutions at the expense of traditional big hitters such as Cardiff 51¹ú²úÊÓƵ.

Swansea Metropolitan 51¹ú²úÊÓƵ, until recently known as the Swansea Institute of Higher Education, saw the biggest percentage increase in research funding, rising 231 per cent to over ?289,000.

Glyndwr 51¹ú²úÊÓƵ has seen its research funding increase by 166 per cent. The 51¹ú²úÊÓƵ of Wales, Newport, the Centre for Advanced Welsh and Celtic Studies and the 51¹ú²úÊÓƵ of Wales Institute, Cardiff also saw increases.

In absolute terms, Swansea 51¹ú²úÊÓƵ enjoyed the biggest rise, ?3.6 million. Aberystwyth 51¹ú²úÊÓƵ and the 51¹ú²úÊÓƵ of Glamorgan both gained more than ?1 million.

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The biggest loser was Cardiff 51¹ú²úÊÓƵ, the only Welsh member of the Russell Group. It lost ?2.17 million in recurrent research funding. Bangor 51¹ú²úÊÓƵ lost ?1.1 million and the 51¹ú²úÊÓƵ of Wales, Lampeter's research funding was cut by ?474,000 or 32 per cent.

The allocations include a boost of ?6.1 million for science subjects obtained by transferring money from "other funds". Capital allocations totalling ?23.75 million have been announced separately.

zoe.corbyn@tsleducation.com.