The comments made by Alan Milburn in The Times about the NHS are much more sharply worded than Bridget Philipson’s recent homily about wanting a “sustained efficiency and reform programme” in higher education. Her comments were accompanied by five loosely worded and poorly defined “priorities” without any sense of urgency or scale. We have to wait until next summer to understand what she means by higher education reform but hopefully Milburn has already given us the headlines.
“…weaned off the ‘more, more, more’ culture”
The recent increase in student tuition fees to £9,535 from April 2025 was instantly met with a volley of comments saying it was just a start and wasn’t enough. The Government probably hoped for some recognition that they had taken a step that the public was unlikely to support. What they got was a turning up of the volume on comments that suggests universities are still ignoring the priorities of taxpayers and voters.
There seems little merit in supporting the creation of more degree awarding institutions, even through independent provision, when the country seems unable to support the current system and the franchise market is a mess. If more students did go to university the more popular institutions would simply manipulate their enrollment numbers to the detriment of those that are less well positioned. Having more graduates may even continue depressing the level of the graduate premium.
Having fewer institutions might have the benefit of concentrating scarce resources more effectively without compromising student experience and outcomes. It might be possible to regulate them more closely to ensure that they are delivering outcomes that help drive the Labour Party agenda for economic growth. A German architect is credited with coining the phrase “less is more” but that might become the guiding aphorism for the higher education sector.
“..it’s drinking in the last-chance saloon”
Back in 2012 universities were totally unabashed at moving almost in unison to £9,000 a year tuition fees at a point when Government expectation was of an average £7,500. As soon as the Graduate Visa route was introduced there was an uninhibited dash by many institutions to take as many students as possible. There are plenty of signs that on both occasions the cash bounty led to some unwise investments, vanity projects and administrative bloat. We are still dogged with the never ending saga of increasing salaries for vice-chancellors.
Universities have had lots of chances to invest in ways that do not leave them open to public apathy, claims of dumbing down courses while inflating degree grades, and downgrading graduate outcome data. But like inveterate gamblers they have expected windfalls as their birthright and continued to squander the returns on ill-advised bets. What we can be sure of is that if things go wrong and a university does become insolvent the sector will ignore any evidence of poor forecasting, reckless investment or bad management as the underlying cause.
“If you’ve broadly got less resourcing than then, you’ve got to do more reforming than then”
This reflects something that every organization in the world knows. The job of leadership is to forecast well and make good decisions that reflect the financial circumstances. Every business has been through the painful realities of a downturn in revenue and realized that nobody is going to save them. The answer is usually to find new ways of satisfying users/consumers/students with less money.
For many organizations the challenge brings creativity, innovation and focus that establishes a more disciplined and leaner approach to delivering effectively. In the commercial sector those that are unable to do the necessary work of rejuvenation receive little sympathy when they become insolvent and are gobbled up by those that are more able. There are several institutions that have invested millions in restructuring without real success and continue to bleed domestic students – it may be time they were relieved of their struggles
“We are in a different fiscal climate..”
It’s a simple truth that the UK’s finances are shaky but the reality is that we are also in a different climate as far as public opinion is concerned. Universities are well down the list of public sympathy for more taxpayer money and students are increasingly balking at the loan burden they are expected to take on when faced with evidence that suggests a graduate premium is not what it was. The state of the national finances suggest that the cash taps are unlikely to be opened for universities in any foreseeable future and there is little evidence that students are willing to make up the difference.
“People have got to stop thinking that the answer to the…problem is simply more and more money.”
This is where Milburn begins to talk about the need for culture change. He notes that any increases in funding have to be “..matched by a massive dose of reform” and claims that he is seeing evidence that this is recognized by the sector and that frontline staff are “pushing to do things differently.” There is every reason to believe that frontline staff in universities would like to see things done in new ways and that some have already borne the brunt of poorly managed and executed restructuring. But there are many reasons to ask whether senior management or the oversight body of the university are competent in conceiving of or delivering the necessary change.
In the times when inflated tuition fees and record international student numbers created a cash bonanza all of those failings were papered over because there always was “..more and more money.” It is arguable that some in the sector think that this is still the answer and even the extraordinary Universities UK claim that “most families will understand” having to pay increasing levels of tuition fees. Such comments suggest that senior spokespeople still have a mindset based on handouts rather than considering ways of building a better future.
Starmer calls for a Government known for “game-changing innovation and reform”
These are brave words and it is difficult to see that the new Government has done much to impress the mantra on anything. It has bowed down to incremental change in the tuition fee, cozied up to the sector with soothing noises on international students and is yet to be tested on its resolve not to bail out universities that become insolvent.
It is very difficult to see how the university sector can continue in its current size and shape. Many commentators have noted its penchant for duplicating courses and some institutions seem unable to attract sufficient domestic students to remain viable. The sector has grown by increment but is largely the same shape and offering the same product as it was fifty years ago. A one-size fits all, taxpayer underpinned response from Government would be neither innovative or reforming.
Image by Peggy und Marco Lachmann-Anke from Pixabay