BRITAIN: Report on ailing British varsities sparks debate

The Guardian's list of universities with financial difficulties is met by mixed responses

The Straits Times
Wednesday, July 11, 2007
 
By Mark Rice-Oxley

An animated controversy over the financial health of Britain's universities has erupted after a newspaper published a list of nearly 50 higher education institutions at risk of financial failure.

The Guardian cited documents retrieved from the Higher Education Funding Council for England which listed 46 institutions -- most of them upgraded from polytechnics in the 1990s -- which had fallen on hard times.

But government and education officials say the reports were misleading as the list dated back at least four years. They said most had since been restored to financial health, and added that the sector as a whole is in much better condition than a decade ago.

Officials admit, however, that a few institutions are still grappling with financial problems, but will not name them for fear it might hinder their recovery by deterring prospective students.

"It would undermine their recovery; it would affect recruitment and creditworthiness," said Mr Roger Grinyer of the Higher Education Funding Council for England. "It would be prejudicial to public interest."

This approach has been criticised by some who are concerned that students taking on ever larger amounts of debt to get degrees have a right to know whether the institution they will attend may lose credibility because of its financial position.

The institutions named by the Guardian affect hundreds of thousands of students.

The newspaper named Luton (now Bedfordshire University), Thames Valley, the University of Greenwich, London South Bank University, Liverpool John Moores University and Queen Mary, University of London.

All say they have now turned the financial situation around.

The University of Westminster and Trinity College of Music also appeared on the list, but there is nothing to suggest that they are currently experiencing financial difficulties.

Officials say that Britain's 160-odd universities have benefited from a shot in the arm over the past year with the introduction of tuition fees under which institutions can charge up to £3,000 (S$9,000) per student.

The arrangement is set for review in 2009, at which point the cap could be dropped, allowing for much higher fees.

Some fretted that the charge might put students off. But applications have continued to rise to record levels. There are now almost 2.5 million students in Britain, compared to 1.7 million a decade ago.

"Tuition fees are certainly helping universities," said a spokesman for Universities UK, the umbrella group for British higher education institutions. "Universities are in better financial state than they were 10 or 15 years ago. But they continue to operate within tight margins," she added.

Higher education minister Bill Rammell responded to the controversy by writing a letter to the Guardian arguing that the university sector "has never been in better shape, as a result of massive and sustained investment under this government."

Ms Diana Warwick, chief executive of Universities UK (UUK) conceded that higher education institutions were multimillion-pound businesses "and risk is a part of any business of that size and complexity." But she added that the sector was well-managed, low risk and had "a well-deserved world-class reputation."

UUK insists that there is plenty of information about universities for prospective students to inform themselves, and notes that no university has gone bust for 20 years.

Date Posted: 7/11/2007