Universities: ‘A Common Treasury’ For The Knowledge Economy

For several decades UK higher education has been a battleground for short-term thinking, abdication of responsibility and political point scoring.  But Phil Baty of the THE recently that the UK HE sector has been the subject of an unusually intense barrage of bad headlines.  This is often part of the softening up process before a government intervenes with its latest ideologically driven initiatives.

The ‘independent’ trigger may be the Augar Review which is part of the government’s current review of post-18 education.  The Review themes of choice, value for money, access and skills provision offer cover for significant intervention in the sector.  There are many areas where universities do each of these things well but the very notion of autonomous, self-governing institution does not give it an easy time in assembling a coherent, sector-wide response.

More worryingly, the review’s focus on ‘wage returns’ picks a battleground where universities have probably relied too long on distorted ‘average earnings of graduates’ to defend themselves.  Alongside attacks on pay levels of Vice-Chancellors, unconditional admissions and grade inflation, the sector is painted as being self-serving, complacent and out of touch with its student customers or employers’ needs.  It is painful to watch at a moment when the UK needs to defend its reputation for quality higher education against global competition rather than have a firing squad in an inward-facing circle.

In thinking about the future of the sector I was reminded of the ideas of Gerrard Winstanley, the ideological driver of the True Levellers (commonly known as the Diggers) in the late 1640s who saw the land as a ‘common treasury for all’.  Their attempt to implement his ideas of a Utopian society based on common ownership of the land and shared purpose in meeting the needs of all was suppressed by the government of the day.  But in a global knowledge economy it seems to me that universities have a strong claim to be today’s ‘common treasury for all’.

Taking this as my starting point I offer my own version of steps that might help build a better integrated and more stable higher education sector:

1.           An Independent ‘Bank Of Education’ To Oversee Quality, Relevance and Cost

Independent central banks emerged in many developed countries because the economy is too important to place all the levers in the hands of transient governments.  The same is true of education but the sector is also too important to have the rights and needs of students as the only consideration.  The Bank of England’s mission is ‘Promoting the good of the people of the United Kingdom by maintaining monetary and financial stability’ and that is the breadth required by a ‘bank of education’ freed from political interference.            

2.           If One Pays Then Everyone Should Pay

I have always believed that education is a common good and should be free.  If that cannot be the case then it seems illogical to have arbitrary cut off points to begin repaying student loans.  Every graduate should begin, on a sliding scale, to repay their student loan from the moment they begin earning a salary.  It would mean every graduate can say they are giving back – even if it is only pennies – in line with the benefit they receive.  Every graduate gets treated the same with a straight deduction from earned income without external contributions or the ability to pay the debt early. 

3.           The Beneficiaries Of An Educated Workforce Should Pay More And Get Involved

The data on pay suggests that graduates do not always get premium ‘wage returns’ but in principle employers should always benefit from a better educated workforce and the burden of funding should reflect that.  Several writers have noted that the model provided by the Apprenticeship Levy has potential for higher education and the notion of hypothecated funding seems attractive.  But a slogan from the 1700s, no taxation without representation, is a good reminder that employers should also have a right, indeed should be obliged, to support and guide university activities.

4.           A Strategy For UK Education As A Major Economic Asset

Governments around the world, particularly in recent years China, Canada and Australia, have demonstrated that a joined-up approach to higher education can be of significant economic benefit.  Even without UK government help, well-ranked institutions have shown that at both an international and country level that they can monopolise declining or static pools of potential students.  Whether the future is in building global super-brands or allowing weak players to fail a coherent, data-led and output driven, game plan for UK higher education, is important.

5.           Consider Undergraduate Study As A First Job

Young people have lots of reasons for going to university straight from school but it is difficult to understand why their experience should be seen as so removed from those who go straight to employment.  Both have to be disciplined, have to learn, want to enjoy their experience and are looking for a grounding that will allow them to progress.  As traditional undergraduate teaching is altered by blended learning, bite-sized credentials, online delivery, compressed time periods and 24/7 availability there is a moment to see work and study as part of a continuum.  I heard recently that learning ‘is a seventy year job’ – it’s a good way to think about education.     

 6.          Stress Tests and Plans For University Closures

There has been a lot of posturing around the potential for universities to fail but precious little sign that anybody has a plan for the eventuality or a way of understanding the risk level.  There should be absolute clarity around the responsibilities for understanding the potential for failure, managing/reviving a declining university and the way in which its closure or repurposing might be led.  In terms of the ‘common treasury’ there is an associated need to consider the broader interests of the sector and national/local economy by managing unfettered growth from universities unfairly advantaged by brand and financial muscle.

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