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The RAE thing is being ignored by most universities as they increasingly focus on student numbers rather than the actual quality of teaching/research. At my uni, any department that can't guarantee 100 plus students per module is now vulnerable. I taught a course on Modernism last year which had fifteen students on it. It received excellent feedback from the students and produced some excellent coursework. However it's now been scrapped in favour of a new 'mega-module', focusing on employability - which none of the students I've spoken to say they want.
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