Universities have for years been lobbying for a new source
of income via radical increases in student fees. Last year, the Labour
government with support from the Conservatives set up a review of the issue
chaired by Lord Browne. Recommendations from the former chief executive of BP
are due later this year. At last, it seemed, the door was opening for a big win
for the universities. But how do things stand after the election?
Fundamentally, the Conservatives and Labour agree that
expansion of student numbers would be a good thing but that paying for it is a
puzzle. Raising student fees might be the answer, but would be deeply
problematic for any government. It can only ever be an attempt to drive a train
freighted with middle class dynamite through hostile media territory. Last
year, David Willetts - then the shadow but now the minister in charge of the
universities and responsible for implementing any changes to the fees regime -
was savaged in a Daily Mail editorial for comments that entertained a rise in fees.
Such savagery is why the issue was hit into the long grass of the Browne review
until after the election. But for this coalition government the problems are
specially acute.
First, the review comes at a time of a squeeze on public
spending. An increase in fees means an increase in student loans, which means
an increase in lending by the government’s Student Loans Company. In other
words, higher student fees do not reduce state spending on universities; for
the first decades, they increase it - which must be unacceptable to a Treasury
today fixed on deficit reduction.
Second, radical reform is a major political undertaking.
Last time round, Howard Newby, the HEFCE chief executive, practically camped at
Number 10 as Tony Blair nursed the legislation through. But the coalition
incorporates two sets of policy priorities and already has a huge programme of
major reform to push through in the next year or two, amidst the political
nightmare of deeper-than-Thatcher cuts. It needs primary legislation increasing
student fees like a hole in the head.
Third, within the coalition agreement the Lib Dems have been
allowed to maintain their purity on fees with an abstention on any votes. That
leaves the Conservatives with 306 votes against 282 for the other parties (Labour
258), after allowing for the Speaker and Sinn Fein absentees. Suddenly, 20
backbench rebels allied with cynical Labour opposition could give Cameron a
bloody nose, damaging the impression of a strong and stable government that the
coalition is so keen to nurture. With the Daily Mail roaring them on, and the
vote already agreed not to be one of confidence, the issue could easily become
a focus for the discontent brewing among right-wing Conservative MPs.
Fourth, for similar reasons, even with the abstention deal,
Nick Clegg will not welcome a rise in fees. His predecessor Ming Campbell has
already promised to break the whip and vote against. And the (Labour) NUS
president gave a taste of what is to come when he tweeted recently, “Every Lib
Dem in a university seat will be toast if they break their pledge to students
and abstain on tuition fees.”
Fifth, the responsible Cabinet minister also feels it is a
matter of principle. Vince Cable (Willetts’ boss, at least nominally) may feel
unable to abstain, from both vote and debate.
Sixth, the universities continue to misplay their hand.
What can you do with vice-chancellors who tell you openly that they will argue
for small changes in public, and big changes in private?
Seventh, fees are a minefield for Willetts, a man who is too
intellectually honest for his own career. He lost his place in the Shadow
Cabinet by being too honest about grammar schools. On fees, his two brains
probably recognise the strength of the case for the complete removal of the
cap. But if he speaks out on that - and his run in with the Daily Mail shows
how hard he will find it not to - he might as well give up now on ever reaching
the Cabinet proper.
These factors explain why, despite the Conservatives agreeing to the Browne review in opposition, the coalition’s language on the Browne review has been so cool. The Programme for Government simply says, “We will await Lord Browne’s final report into higher education funding, and will judge its proposals against the need to: increase social mobility; take into account the impact on student debt; ensure a properly funded university sector; improve the quality of teaching; advance scholarship; and attract a higher proportion of students from disadvantaged backgrounds.”
The conclusion must be that if there were ever any prospect of a radical increase in student fees, the election result and the emergence of the coalition has killed it. Instead, a small rise in the level of the cap can probably be pushed through Parliament without primary legislation, minimising (though not eliminating) the scope for a damaging defeat.
For the research base, this will be grim news. Cuts are coming, and fees are not coming to the rescue. In other words, for researchers and universities, the election has already proved a major disaster.
LINKS
David Willetts speech at the University of Birmingham
This article is an edited extract from a special report assessing the impact of the election on research and universities. Further extracts will appear in Research Fortnight on 2 June, and the full assessment is contained in the larger Research report
Live or let die: Research in tough economic times.
[Updated 16 July 2010]
