Like it or not (and assuredly, many don’t) universities exist in an increasingly marketised environment. Current, proposed changes to the sector bring all this in to sharp focus. The new regulatory regime set out in the current Higher Education and Research Bill is particularly significant here. The introduction of the TEF means that for the first time universities will be assessed on the quality of their teaching, as well as that of their research. This is going to put some universities in the Russell Group in particular in a very challenging position. Such has been the status accorded to research over teaching (something actively encouraged by government policy up until now) that many universities have cross-subsidised their research from the fees they earn from teaching. For how much longer can that go on, or to the extent that it has? Faced with not being rated “Gold” for teaching and losing the fees that go with it, will some universities be able to afford to cross-subsidise? And if not, what happens to their research rankings?
What’s more, universities are set to face yet more competition for students. Already some continental universities (Maastricht is a good example) are actively courting the British market. Further down the line the challenger institutions envisaged in the current Higher Education Bill could present a real competitive threat – particularly, if as seems likely, they innovate in terms of the flexibility they offer students.