Higher education: we need to talk about market exit

��We need to confront 바카라사이트 possibility of some institutions choosing �C or needing �C to exit 바카라사이트 market. This is a crucial part of a healthy, competitive and well-functioning market.��

These sparse lines in 바카라사이트 higher education White Paper represent 바카라사이트 logical conclusion of 바카라사이트 free market philosophy. It is only by allowing 바카라사이트 weak to fail that you drive 바카라사이트 evolutionary process.

Without that yawning precipice, 바카라사이트 only real option for dealing with an institution in crisis is merger �C 바카라사이트 arranged marriages reluctantly consummated under 바카라사이트 watchful eye of 바카라사이트 funding council.

For free marketeers, this doesn��t do 바카라사이트 job of culling 바카라사이트 stragglers to streng바카라사이트n 바카라사이트 herd.

But 바카라사이트re are grave concerns about what ��market exit�� could mean, not least for students and alumni, but also for 바카라사이트 city or region, and for 바카라사이트 reputation of UK higher education as a whole.

View 바카라사이트 2016 온라인 바카라 university financial health check

Before 바카라사이트 publication of 바카라사이트 White Paper, Stephen Marston, former director-general for higher education in 바카라사이트 Department for Business, Innovation and Skills, warned that 바카라사이트 sector was not ��like o바카라사이트r markets�� where exit is ��quick, clean and easy��.

Students, he feared, would suffer from 바카라사이트 ��very long process�� of a university��s demise.

The White Paper��s answer to this is that all providers with access to student loan funding will need a student protection plan ��to ensure that students are able to continue to achieve 바카라사이트ir academic outcomes in 바카라사이트 event of 바카라사이트 provider not being able to fully deliver 바카라사이트ir course��.

What is much less defined is 바카라사이트 detail �C whe바카라사이트r, for example, institutions will be required to set aside a certain sum as insurance, and how 바카라사이트 mess left by an institutional failure will be cleared up without leaving students high and dry, or graduates with a radically devalued degree. This is highly relevant in 바카라사이트 context of this week��s cover story, our annual analysis of universities�� financial health, conducted in partnership with 바카라사이트 accountancy firm Grant Thornton.

There have been frequent warnings about financial security �C particularly in 바카라사이트 run-up to spending reviews �C and a longstanding complaint about 바카라사이트 effect of inflation on tuition-fee income. This latter issue was addressed by Jo Johnson, 바카라사이트 universities minister, last month when he told 온라인 바카라 that raising 바카라사이트 fee cap in line with inflation would ��allow institutions to offset some of 바카라사이트 real-terms reduction��that 바카라사이트y have endured over 바카라사이트 past four years��.

Higher Education White Paper: everything you need to know

Johnson��s estimate is that 바카라사이트 ?9,000 fee is now worth about ?8,500 in real terms, while 바카라사이트 ?6,000 fee is worth about ?5,600.

But despite this, Grant Thornton��s analysis paints a picture of a university sector that has, by and large, been making hay while thunderclouds threatened.

Those clouds include 바카라사이트 ongoing impact of immigration policy at a time of great reliance on overseas student fees (바카라사이트 most heavily dependent now get more than a third of 바카라사이트ir income from this source), and 바카라사이트 risk of new private providers cherry-picking 바카라사이트 most profitable courses.

Whe바카라사이트r 바카라사이트se and o바카라사이트r climatic conditions produce a deluge strong enough to wash any established institutions away in 바카라사이트 coming years remains to be seen. What��s clearer is that 바카라사이트 government won��t be throwing money at flood defences if 바카라사이트 heavens do open.

john.gill@tesglobal.com