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Government HE subsidy doing 'more harm than good'

4th March, 2010

If UCU calling for a corporation tax rise to pay for the abolishing of tuition fees is at one end of the scale, then this report by the Adam Smith Institute called 'The Broken University' is at the other. The report calls for radical reforms to the way British HE is funded if it is to maintain its world-leading position. 

 

Unlike some reports, this one definitely wears its heart on its sleeve. "It is clear that not only is the £14.3 billion public subsidy to HE not providing any economic or public benefit, it is also disrupting, distorting and preventing the growth and development of one of the UK’s most important service sectors. In short, it is doing much more harm than good".

 

It calls for (among other things) the abolishing of the cap on tuition fees, the extending of charitable tax benefits to for-profit institutions, the short-term redirection of the subsidy from institutions to students, and in the long-term the phasing out the government subsidies altogether.