Responding to speech today from Secretary of State Vince Cable, Professor Steve Smith, President of Universities UK, said: “The university sector accepts the current restrains on all public spending but would urge against reducing investment in higher education which would be economically self-defeating.

“We cannot turn back the clock to a society where we flourished with a small number of graduates. All our international competitors realise that they need to invest in undergraduate places, not disinvest. The government must continue to recognise the transformative impact of universities on students and society.

Graduate tax

“We know that the coalition government will fully respect the independence of Lord Browne’s Review of higher education funding and student finance.

“Universities UK shares the view that since graduates benefit personally from their degrees, it is right that they make a direct contribution to the costs of study.

“Our submission to Lord Browne’s review argued that the current tuition fee and loan system should more accurately be described as a ‘graduate contribution’. We have also argued that the system could be made more progressive with reforms such as a real rate of interest, which would reduce the taxpayer subsidy for higher earners.

“With proposals for ‘variable graduate contributions tied to earnings’, the sector would want assurances that proceeds from such a system would be re-distributed to universities and that the important link between these contributions and the university attended by the student is maintained. Any changes to the system would have to promote student choice, secure the quality of the student experience and maintain the reputation of the country’s higher education system.”

Commenting on the issue of two-year degrees, Professor Smith added: “The radically changed economic climate does mean we will have to think hard about how to build on the diversity, innovation and flexibility already in the higher education system.

“There have been a number of attempts to pilot two-year degrees in recent years. There have been issues relating to the comparability of such degrees within Europe and also about the level of demand for such degrees. At present, such a high pressure qualification would only be suitable for very particular kinds of student.

“While we agree that increasing the flexibility of provision, and the range of options available to students is important, this must be driven by the interests of students, rather than pure cost considerations.”

Notes

1. A copy of Vince Cable’s speech is available at: http://www.bis.gov.uk/news/speeches/vince-cable-higher-education 
2. Universities UK’s submission to Lord Browne’s review is available at: http://www.universitiesuk.ac.uk/Publications/Documents/BrowneReviewSecondSubmission.pdf