The fall in the value of the pound is reportedly having a "crippling effect" on the budgets of UK university libraries. Costs of subscriptions to overseas research journals from Europe and the US have risen due to changes in the exchange rate. Since July 2008, the value of the pound has fallen by about 25 percent against the dollar and the euro.
According to Research Libraries UK (RLUK) and the Research Information Network (RIN), the increased cost is a "significant problem" because libraries at large research-intensive institutions typically spend 75 percent of their acquisition budgets on journals. The RLUK represents the major research libraries in the UK, while the RIN promotes the information needs of researchers.
Experts note that the current situation may lead to libraries being forced to cancel journals. Tony Kidd, assistant director of Glasgow University Library, a RLUK member, explained that journals priced in US dollars, which used to account for about 25 percent of the library's journals budget, were now costing it 37 percent more than a year ago. Journals priced in euros, which accounted for about 40 percent, now cost an additional 19 percent. He estimated that every time the pound went down either a euro cent or a US cent over a year, it would cost his library £12,000 and £7,000, respectively.
According to Kidd, while recent VAT reductions had been helpful, there was still a "longstanding anomaly" in the system that saw libraries pay VAT on electronic information resources, such as e-journal subscriptions, but not on print books or journals.
The RIN is currently conducting an emergency study to build up a better picture of the exchange-rate problem.
