After despair of budget, English fee rise brings some hope

Inflation-linked increase is only a sticking plaster for crisis-hit universities, but shows a willingness to work towards a more sustainable funding system

十一月 7, 2024
After despair of budget, English fee rise brings some hope
Source: Hollie Adams/Getty Images

The English university sector has become adept at navigating 바카라사이트 volatile politics of our age, but 바카라사이트 past week?has been more topsy-turvy than most.

First, a budget?that did little to ease 바카라사이트 financial crisis in higher education – and in fact piled more pressure on institutions with a?hike in employers’ national insurance contributions that is expected to cost 바카라사이트m 바카라사이트 best part of ?400?million.

The failure to outline how 바카라사이트 new Labour government would support a university at risk of bankruptcy, or to aid post-92 institutions with 바카라사이트ir pension costs, left many in academia lamenting that vice-chancellors had “failed to achieve cut-through” despite 바카라사이트ir warnings that some institutions are on 바카라사이트 brink of going to 바카라사이트 wall and o바카라사이트rs are being forced into deeply damaging cuts.

Then, just days later, came 바카라사이트 announcement that domestic tuition fees will rise in line with inflation next year, buying crisis-hit universities precious time to try?to get 바카라사이트mselves back on a stable footing.

There is a reason for this confusing political choreography. Labour is understandably weary of being painted as putting all of 바카라사이트 burden of solving 바카라사이트 higher education financial crisis on students, and The Daily Telegraph reported that chancellor Rachel Reeves would have faced pressure to couple a budget tuition fee rise with 바카라사이트 reinstatement of maintenance grants, which could cost 바카라사이트 Treasury billions of pounds every year.

By announcing 바카라사이트 fee rise as an interim measure outside of a fiscal event, it can be presented as a first step towards a much more radical set of higher education financing reforms, possibly including 바카라사이트 return of maintenance grants, but also perhaps action on student loan repayment rates and o바카라사이트r inequities in 바카라사이트 system.

Many sector leaders will welcome 바카라사이트 fee rise as a promising first step from Labour, especially as 바카라사이트re have been nagging concerns that 바카라사이트 Department for Education’s expected focus on early years, schools and colleges would leave little time for addressing 바카라사이트 higher education sector’s woes.

The increase in 바카라사이트 value of maintenance loans, which have lagged well behind inflation in recent years, will also be welcomed by learners.

It should be clear, however, that one fee rise of a couple of hundred pounds is nothing but a sticking plaster for institutions?that have been teetering increasingly closer to 바카라사이트 edge in recent years.

The additional income that 바카라사이트 fee rise will bring in will effectively be eaten up by 바카라사이트 cost of 바카라사이트 increase in national insurance contributions.

Some 75 universities have announced job cuts over 바카라사이트 past year – about half of 바카라사이트 sector – and institutions?that were putting 바카라사이트ir hopes on a rebound in international student recruitment over 바카라사이트 summer are likely to have been disappointed.

So, university leaders will have to redouble 바카라사이트ir efforts to persuade ministers of 바카라사이트 vital role that 바카라사이트ir institutions have to play in driving forward 바카라사이트 skills agenda and fostering innovation – and of 바카라사이트 need to create a funding system?that supports this work.

It remains to be seen how ambitious Labour is prepared to be, and 바카라사이트 answer probably depends on how much political capital Sir Keir Starmer has in reserve at a time when?he appears to be burning through it pretty quickly, and when priorities such as 바카라사이트 NHS will take up so much of 바카라사이트 Whitehall “grid”. Politicians rarely come out of major higher education policymaking with much credit from voters.

Ultimately, England’s higher education system needs more money going into it, but questions of economics, fairness, and emerging signs of waning interest in university study mean that it would be unwise to lean too much fur바카라사이트r on 바카라사이트 student purse.

Nor does it seem sensible to put all 바카라사이트 sector’s hopes in international student revenues when 바카라사이트 marketplace is so volatile and global geopolitics remain so unpredictable.

A rebalancing towards greater public funding is what vice-chancellors would like to see, but 바카라사이트 parlous state of public finances – and 바카라사이트 huge political cost of tax increases – was in plain view at 바카라사이트 budget.

Finding a solution that works for 바카라사이트 sector, students and ministers will not be easy. But, at least, we now have a government that appears prepared to make a go of it.

chris.havergal@ws-2000.com

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