Well the problem is a total lack of people wanting to do the chemistry courses. For instance, even Oxford Chemistry dept. is in dire straights with just 1.4 applicants per place, less than 1/4 of the average number. People just don't want to go into Chemistry anymore and a lot of the depts are having trouble. Some universities however are the complete opposite, for example York. York is one of the strongest Chem depts in the country - I nearly applied to do Chemistry there before I decided on Chem Eng instead. They are having a huge new centre built for spin off companies (well probably built now!) just for chemistry - it's one way of supporting the dept which doesn't get enough money in.
Exeter sadly haven't managed to keep with the times and this isn't the first to say it will stop intake although I don't know which ones off hand. It's the future for the short term, a lack of science graduates. A lot of people blame the chemistry teaching in schools, I can't comment, my head of sixth/chem teacher was an Oxford grad, wrote some of our text book and was a brilliant teacher, without him I wouldn't have considered chem eng or chemistry.
Have to make a call so can't continue lol.