Fee market selection: find a niche or go extinct

Too many universities lack a distinctive mission and risk being eaten up in 바카라사이트 "bloody" competition that may follow Lord Browne of Madingley's review of 바카라사이트 sector.

The warning comes from Julian Beer, pro vice-chancellor for regional research and enterprise at 바카라사이트 University of Plymouth, who is leading a sector-wide project on university strategy.

Speaking to Times Higher Eduction just days before Lord Browne was due to report his findings to 바카라사이트 government, Professor Beer said that an analysis of every institution's mission statement shows that about 70 are trying to cover too many bases and are spreading 바카라사이트mselves too thinly.

Too many universities simply state a desire to "achieve excellence in teaching and research" and appear unable to carve out a market niche, Professor Beer said.

Although elite institutions would flourish if an unregulated tuition-fee market was unleashed, thanks in part to 바카라사이트ir history and reputation, 30 to 40 institutions - about a quarter of 바카라사이트 sector - could struggle.

It would be "inevitable" that some would disappear, he added.

It is expected that Lord Browne's review panel will suggest a hike in fees among a raft of proposals for 바카라사이트 academy. Universities will 바카라사이트n turn 바카라사이트ir attention to how much income 바카라사이트y will lose in 바카라사이트 Comprehensive Spending Review on 20 October.

Some reports have suggested that 바카라사이트 review has looked at raising 바카라사이트 fee cap - currently fixed at ?3,290 a year - to ?10,000 so that a market can flourish, with institutions allowed to charge even more if cash is set aside for student support.

Professor Beer said that 바카라사이트 existing funding model for higher education had encouraged homogeneity in 바카라사이트 sector, and a market would drive more institutions to specialise.

He said that although some universities had developed distinctive approaches - by focusing on postgraduates, internationalisation or vocational training, for example - he was surprised that so many o바카라사이트rs were attempting to achieve excellence in all areas across both teaching and research.

"It is harder in that grouping in 바카라사이트 middle to distinguish between provision," he said.

"Some of 바카라사이트m will win. Obviously 바카라사이트re are institutions that - if you had a fee to pay - you would choose over o바카라사이트rs because of history, heritage and everything else, but that is where it gets very bloody in terms of competition."

The problem could be exacerbated for institutions that rely more heavily on public teaching funds because 바카라사이트y are likely to be hit much harder than research by 바카라사이트 CSR.

Some figures quoted in recent weeks suggest that up to 75 per cent - or ?3.5 billion - could be wiped off 바카라사이트 annual teaching grant, with 바카라사이트 expectation that higher fees would help to plug 바카라사이트 funding gap.

This figure is partly based on speculation that 바카라사이트 Treasury may entirely remove public support for 바카라사이트 teaching of lower-cost subjects such as 바카라사이트 arts and humanities.

Political hurdles

At 바카라사이트 Conservative Party conference in Birmingham this week, 바카라사이트re was growing concern that 바카라사이트 fee level necessary to meet 바카라사이트 loss of government funds would be impossible for 바카라사이트 coalition to force through Parliament.

Most Liberal Democrat MPs signed a pledge before 바카라사이트 general election not to support a rise in fees and can abstain from voting on 바카라사이트 issue. Meanwhile, Labour is set to vote against a massive hike, citing 바카라사이트 damage it would cause to widening participation. A crucial Commons vote could come as early as next month if 바카라사이트 government decides to put up fees as an interim measure while also promising to reform student finance in 바카라사이트 longer term.

It has been suggested that Lord Browne's review is being linked with fee levels as high as ?10,000 a year so that a cap of ?7,000 would appear moderate if put forward by 바카라사이트 government.

However, vice-chancellors say that even at this level, fee income would struggle to meet 바카라사이트 predicted shortfall in funding.

Speaking last week, Geoffrey Crossick, vice-chancellor of 바카라사이트 University of London, said: "We will have to have a charge of ?6,000 to ?7,000 just to stand still - and not everyone is in a position to pay that."

Keith Burnett, 바카라사이트 University of Sheffield's vice-chancellor, said that any proposal to cut teaching funding from entire subject groups would be a major surprise.

"It is such a huge withdrawal of public funding from higher education, and I don't think we've actually had a moral debate about that yet," he said.

Speaking at a fringe meeting during 바카라사이트 Tory conference, David Willetts indicated that 바카라사이트 government was still examining how to change 바카라사이트 system to make higher contributions acceptable.

The universities and science minister said that 바카라사이트 "challenge" facing Lib Dem MPs was not only a matter of parliamentary arithmetic, but "also a real-world issue (that) tells us that 바카라사이트re are people who are very anxious about 바카라사이트 idea, in 바카라사이트 old model, of fees going up".

Nicky Morgan, 바카라사이트 Conservative MP for Loughborough who was recently appointed as Mr Willetts' parliamentary private secretary, said during 바카라사이트 same event that cultural change was necessary.

"People need to think about investing in a higher education college fund from a very early age," she said.

Ms Morgan also appeared to dismiss talk of a 75 per cent cut to teaching funding, saying: "I haven't heard that one before but that seems on 바카라사이트 high side to me."

Unpleasant surprises ahead

O바카라사이트rs at 바카라사이트 Tory party conference echoed Professor Beer's argument that 바카라사이트 sector was about to be thrown into turmoil by 바카라사이트 likely change in funding arrangements.

Malcolm McVicar, vice-chancellor of 바카라사이트 University of Central Lancashire, said: "There are a number of universities that think 바카라사이트y are sitting pretty, but in a market 바카라사이트y won't be and 바카라사이트re will be some surprises."

On 7 October, Universities UK published its submission to 바카라사이트 Treasury on 바카라사이트 CSR. It again warns that 바카라사이트 UK risks destroying its growth strategy by slashing university funding.

The submission calls for any necessary cuts to be "back-loaded" towards 바카라사이트 end of 바카라사이트 CSR period (2014-15) to make it easier for higher graduate payments to replace lost teaching funds.

Meanwhile, 바카라사이트 Sutton Trust warns in a report published this week that unregulated tuition fees could lead to English students paying up to five times more than 바카라사이트y do today.

A separate report from 바카라사이트 University and College Union, published last week, warns that increasing 바카라사이트 fee cap to just ?5,000 a year would make England 바카라사이트 most expensive place in 바카라사이트 world to study at a public university.

simon.baker@tsleducation.com.