Funding institutions of higher education has changed dramatically in the past decade. Gareth Williams explores the extent of changes in the pattern of finance; describes the responses of a variety of institutions which have had different degrees of success in obtaining and generating income; examines the changing relationships between central institutional managers and academic departments and centres; and attempts to evaluate the new funding arrangements in terms of their academic and managerial effects. He makes a number of recommendations for future development in such matters as institutional resource allocation, management and career development of contract staff, the pros and cons of bidding for resources and costing and pricing policies.