The ways that British universities allocate their resources are discussed, with attention to different styles, techniques, and decison-making structures. Since the purpose is to describe institutional models of resource allocation, specific universities are not identified by name. After identifying the sources of income and the breakdown of expenditures for United Kingdom universities, attention is directed to procedures for allocating funds for academic purposes, research, central services, premises, furniture and equipment, and central administration. The resource allocation mechanisms used by the government and the University Grants Committee (UGC) are also reviewed, along with the effect of these mechanisms on the universities. In describing the funding of universities since the early 1970s, consideration is given to the universities' adaptation to financial stringency and adjustments to cuts in UCG income that resulted from the July 1981 allocation letters. The market-oriented approach adopted by the Cranfield Institute of Technology is also addressed. Finally, resource allocation procedures in U.S. universities are described and compared to those in Britain, and implications for British practice are considered. (SW)