He added: “So I resigned. 80% of funding, I think they call it Specialist Institutions for Music, goes to London, 80%.
“And guess where the other 20% is going? Manchester.”
The revelation comes from his new autobiography, titled Bows and Arrows.
The Office for Students reformed the way specialist education institutions were funded, external and the Conservatoire missed out, partly as it was part of Birmingham City University.
The school has since loosened its ties with the university, external, one reason for which was to “unlock additional funding streams”.
Explaining why now had been a good time to release his book, he said: “I was at the point where I had finished my career, really.
“I had an injury and after resigning from the Conservatoire. I was doing lots of things but I thought why not actually put this down.”
Despite his frustrations, Lloyd Webber said he had loved his time in Birmingham and said he believed the Conservatoire would “reap the reward” of investing in music education.