The fee vote really comes down to two questions. First, will the fee hike proposed by the coalition government actually create an internal market in higher education? Second, what will be the
effect on the public finances? There is good reason to be doubtful.
First, the market: the idea, I suppose, is that world-class universities might charge higher fees than second and third tier ones. But, in the last few days, I’ve spoken to
several very senior higher-education sources who privately report that universities like Leeds Met, Bolton and Worcester are very seriously considering charging the full
£9,000 tuition for their courses once legislation is in place. The government is extremely concerned. As you can imagine, if that pattern is repeated across the sector, then there will
be no internal market in the short-term. Everyone will be paying a higher rate.
In the long-term, it might be hoped the market to become more flexible as universities vie for students but it’s unclear how long that will take – there may be no change at all. In
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