American-backed private universities plan dropped

A Higher Education Bill, which was to be introduced in the forthcoming Queen’s Speech, has now been delayed indefinitely and is unlikely to be published before 2015. The new legislation was designed to make it easier for private colleges, including big American education firms, to set up new universities in Britain, write Robert Winnett and Graeme Paton for The Telegraph.

David Willetts, the higher education minister, had hoped that introducing more competition, together with tougher regulation of universities, would help drive down costs for students while increasing standards. State loans would have been offered to those attending the new private colleges. Under-performing universities would effectively have been allowed to go bankrupt and be replaced by more successful institutions.

However, it is understood that the prime minister is unwilling to embark on radical reform of another public service while facing battles on the reorganisation of the National Health System, schools and welfare.
Full report on The Telegraph site