Treasury backs university campus building project

The cut-throat bidding war among British universities for students and resources entered a more expensive phase recently, after the University of Northampton announced plans for government-backed bond issuance and borrowing of nearly £300 million (US$470 million) to finance a new campus, writes Richard Adams for The Guardian.

Northampton’s announcement came as the University of Kent in Canterbury revealed that it had also secured financing of £75 million in loans from the European Investment Bank for its planned expansion, while experts warned that a borrowing bonanza could rebound on some higher education institutions, leaving UK taxpayers to bail them out.

The government’s decision to remove the cap on undergraduate student recruitment from next year has triggered a building frenzy among British universities. Some are eager to jump ahead of their competitors with new halls of residences, lecture theatres and campus facilities designed to attract more students – using their tuition fees to pay for the increased borrowing required.
Full report on The Guardian site