By David Williams
21 September 2009
Current public spending on higher education is ‘unsustainable’, business leaders have said, recommending that university tuition fees should be raised to plug the funding gap.
A report published today by the CBI calls on businesses to become more involved in HE, giving more sponsorship and internships to students and working with academics to design courses.
Stronger together – businesses and universities in turbulent times argues that universities are a ‘vital public good’, and recommends students pay more to safeguard teaching and research from cuts.
The report says that, in return for more investment from business, universities should expand the Stem degrees – science, technology, engineering and maths.
The report also recommends that the government should temporarily drop its target of 50% of 18 to 30-year-olds participating in higher education.
CBI director-general Richard Lambert said: ‘Maintaining a world-class higher education system is vital to the UK’s future competitiveness.
‘Savings should come from the student support system. The UK's student support is on a par with some of the most generous in the world.’
The CBI argues that £1.4bn could be saved by providing student loans at the government’s cost of borrowing. The body also cites a study from Universities UK, which found that fees could boost income by £1.25bn without causing a decline in student numbers if they rose to £5,000 a year.
The report has been condemned as ‘arrogant and elitist’ by the Association of Teachers and Lecturers.
Martin Freedman, ATL’s head of pay, conditions and pensions, said: ‘The CBI should be arguing for maintaining HE funding in real terms, just as they argued for huge injections of cash to support failing businesses.
‘Firms have a poor record of investing money for student support so this is no substitute for proper support. Even the offer of internships is largely cost-free for those companies.’
He argued that forcing ‘universities to focus on narrower areas and “specialise” would mean that they would just turn out fodder for current businesses’. He said that the business union ‘needs to have a better idea of the purpose of higher education’.
The CBI report came as the Liberal Democrats relaxed their stance on tuition fees. The party has maintained its pledge to abolish the charges, but has admitted the move would not be affordable while billions of pounds’ worth of savings were being made elsewhere in the public sector.
21 September 2009
Current public spending on higher education is ‘unsustainable’, business leaders have said, recommending that university tuition fees should be raised to plug the funding gap.
A report published today by the CBI calls on businesses to become more involved in HE, giving more sponsorship and internships to students and working with academics to design courses.
Stronger together – businesses and universities in turbulent times argues that universities are a ‘vital public good’, and recommends students pay more to safeguard teaching and research from cuts.
The report says that, in return for more investment from business, universities should expand the Stem degrees – science, technology, engineering and maths.
The report also recommends that the government should temporarily drop its target of 50% of 18 to 30-year-olds participating in higher education.
CBI director-general Richard Lambert said: ‘Maintaining a world-class higher education system is vital to the UK’s future competitiveness.
‘Savings should come from the student support system. The UK's student support is on a par with some of the most generous in the world.’
The CBI argues that £1.4bn could be saved by providing student loans at the government’s cost of borrowing. The body also cites a study from Universities UK, which found that fees could boost income by £1.25bn without causing a decline in student numbers if they rose to £5,000 a year.
The report has been condemned as ‘arrogant and elitist’ by the Association of Teachers and Lecturers.
Martin Freedman, ATL’s head of pay, conditions and pensions, said: ‘The CBI should be arguing for maintaining HE funding in real terms, just as they argued for huge injections of cash to support failing businesses.
‘Firms have a poor record of investing money for student support so this is no substitute for proper support. Even the offer of internships is largely cost-free for those companies.’
He argued that forcing ‘universities to focus on narrower areas and “specialise” would mean that they would just turn out fodder for current businesses’. He said that the business union ‘needs to have a better idea of the purpose of higher education’.
The CBI report came as the Liberal Democrats relaxed their stance on tuition fees. The party has maintained its pledge to abolish the charges, but has admitted the move would not be affordable while billions of pounds’ worth of savings were being made elsewhere in the public sector.
