The higher education and skills minister believes English universities are generally “in good financial health” as he admitted he has not exactly been banging on the door of the Treasury to demand more funding.
Robert Halfon said the sector was in a “fairly strong” position – compared with much of the economy given the current financial difficulties – and implied management may be to blame at universities faring badly, rather than his government’s funding system.
Appearing in front of the House of Lords inquiry into the English regulator, the Office for Students, Mr Halfon repeatedly pointed out that 75 per cent of the country’s universities were in a “good financial condition”, although the finances of 30 providers were being monitored by the OfS.
“Why is it that the vast majority are able to be in good financial health whilst a few are not?”, he asked, before later adding: “Some of it – not all – may be down to the management of that particular university and the leadership, rather than the funding system.”
Sector leaders have argued the current funding system is not sustainable, and they are being forced to rely on international student fees to survive. Asked by the committee what message he was giving to the Treasury, Mr Halfon said “I will always welcome and champion more resources into HE and FE.”
But, he added: “The message would be I want more funding for skills. Rather than just saying we’re going to give HE institutions more funding, I want to say what is the best way to ensure we have more skills and more qualified people who get good skilled jobs at the end of their education.”
He said he could not “say to my Harlow constituency taxpayers – many of whom don’t go to university – you have to fund this more out of your taxes. I can’t just get a blank cheque from the Treasury.”
Mr Halfon did not rule out raising tuition fees in future but backed the current fee freeze as being fair for students.
“I am not an advocate of increasing tuition fees," said the minister. “I think that would hit the student and that is important at a time when things are very difficult. That doesn’t mean they are never going to go up but I think the approach of the government has been the right one.”
Mr Halfon’s appearance in front of the committee was the final hearing of the expansive Lords’ enquiry, which has also heard from vice-chancellors, students and OfS officials. A final report is expected to be published in July.
Addressing questions over the autonomy of the regulator from politicians, Mr Halfon said he had not written a single guidance letter since taking the position last year, insisting he does not “micromanage” the organisation’s work.
But, he said, given the cost of funding universities to the taxpayer, it was right that the government outlined the “strategic priorities that it believes in and therefore it should guide institutions into what the government thinks should happen”.
Overall, Mr Halfon said, he saw the role of the OfS as being to “act as an intermediate institution between the state and universities. In my view they should be there to partially protect the autonomy of universities.”
Asked about the appointment of Conservative peer Lord Wharton as the OfS’ chair, Mr Halfon said he had been the “best fit for the job” at the time. He said he had interviewed a candidate for a government-appointed position on the OfS’ student panel but this was a sign of his commitment to ensuring the best person took on the role, not evidence of being overbearing.
The minister said he was in favour of “more streamlined regulation” and empathised with institutions that have to deal with multiple regulators, particularly those offering degree apprenticeships, and are also inspected by Ofsted.
He said in the corridors of the Department for Education, he was fond of using the phrase “operation machete”, encouraging officials to cut back on the “nonsense”, and said the OfS was already looking at reducing the regulatory burden placed on institutions.
