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Peter Mandelson: Future of our universities is at risk from both Theresa May and Jeremy Corbyn

Playing with fire: university education is at risk of Beeching-type cutbacks: PA Wire/PA Images
Playing with fire: university education is at risk of Beeching-type cutbacks: PA Wire/PA Images

I have been part of three university finance reviews under two prime ministers: the third I initiated myself when I was Labour’s last universities minister in 2009. If there were any radical solutions to sustaining a lower-cost, world-standard higher education on offer that could charge students substantially less, they would have been found by now.

Of course, graduates face a considerable burden of debt and are getting a less good deal than previous generations — because students pay more than was planned when Labour introduced fees. The system is far from perfect and can be reformed to soften the financial burden on students. But repayment is tied to income and much of the debt is written off by the Government.

There are three ways of seriously reforming university finance: changing student contributions to university costs, changing government spending on the sector and changing the scale and quality of university education. At a time of massive pressures on public spending, government is not likely to take on a major, extra financial responsibility any time soon. So student contributions have to be sustained or the sector, including its research base, won’t be, unless more British students are replaced by higher paying foreign ones. In an institution such as Manchester Metropolitan University that would mean students from disadvantaged backgrounds being replaced by well-off students coming from overseas. What contribution is that going to make to increasing social mobility?

The best use of new resources would be to reduce the university living costs of students from poorer backgrounds by providing substantial bursaries. I once tried to persuade Ed Miliband of this when he was proposing to make a large cut in student fees. I argued that this would disproportionately benefit well-off students. His response was that universities had been protected from austerity for long enough. Not exactly a progressive line. The same could be said of Jeremy Corbyn’s idea of eliminating fees. This would be a bonanza for the well-heeled classes.

In setting up her review, Theresa May is thinking short-term politics not long-term strategy. If it is more than window dressing, university education will be at risk of Beeching-type cutbacks at a time when we can least afford them. Or perhaps this is the secret aim. Perhaps she agrees with those in her party who believe that we should revert to a smaller number of more elite universities. This agenda would set back our universities for a generation. Throw Brexit in and the negative impact this will have on universities, and you really are beginning to play with fire.

Peter Mandelson is Chancellor of Manchester Metropolitan University.