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Thu 31 May 2012
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CBI: Government should close poorly-performing universities
Wed 09 Jun 2010
The CBI has suggested that poorly-performing universities in Britain be closed down by the government.
Richard Lambert, director general of the business group, said the Conservatives and the Liberal Democrats must make some tough decisions to protect the good reputation of universities in the UK.
He stated that closing or merging the worst-run institutions could be one positive step to take, particularly in the current climate of cuts to public spending.
Mr Lambert acknowledged that while such a move could be "politically explosive", it would be an "economically sensible" decision to take.
He suggested that this measure would help to stop the best universities in Britain from paying the price for the "incompetence" of those which lag behind.
Mr Lambert added that top performers should be put into a so-called premier league of higher education institutions, which would enable them to charge bigger tuition fees to students.
Stephen Hart, senior solicitor at Winckworth Sherwood, commented: "Richard Lambert is correct.
"It is not unlikely that one or more universities could fail in the foreseeable future and the sector has to prepare for closures or mergers.
"Historically, universities are no strangers to mergers, but those undertaken during a recession, or through the financial failure of one institution, bring their own challenges.
"Our advice is to keep both sets of governors on board as far as possible, as the synergy that is required in less stressful circumstances may not be present in an enforced merger.
"Staff, students, property and intellectual property are all areas where universities will need to take advice in the event of closure or merger."
The government has already outlined the details of £6.2 billion worth of cuts in public spending over the next year, ahead of the emergency Budget later this month.
