Universities alarmed by Labour plan to cut tuition fees

Leading UK universities have warned Labour about the financial risks of cutting tuition fees a third to £6,000 (US$9,044) a year. The party is deciding whether to go ahead with a costly pre-election pledge intended to woo the middle class, write Helen Warrell and Elizabeth Rigby for the Financial Times.

While Labour leader Ed Miliband sees significant political gains from reducing the costs of university education, shadow chancellor Ed Balls has struggled to find a way to meet the cost, likely to be £2 billion to £2.5 billion, without placing an extra burden on universities.

Several university vice-chancellors – who are, in any case, anticipating significant cuts in government funding in the next spending round – have already expressed their concern. Addressing a meeting of sector leaders recently, Sir Steve Smith, vice-chancellor of Exeter University, voiced his fear that Labour would make an announcement for “short term political gain” without the proper economic underpinning.
Full report on the Financial Times site