It’s an education, all right: Laurie Penny on the commercialization of universities

British universities now see themselves as companies, and students are the losers.

Anyone who believes that knowledge has no price should look away now. For the past month I've been involved with an investigation for Channel 4's Dispatches that revealed just how far the market has penetrated higher education. We discovered highly paid managerial elites running universities as factories where students are little more than customers shopping for degrees.

We started with the top university bosses, who have been lobbying for a rise in tuition fees for years. Vice-chancellors take home an average salary of £254,000, are often given free accommodation, and claim thousands in expenses.

Take Brian Cantor from York University, who last year took home nearly £255,000 even as York faced a £1.48m cut in state funding. His expenses totalled £135,000 over three years - and then there's his grace-and-favour home and his private property portfolio in Mont Blanc, France, which is managed for him by his secretary in York. Cantor nonetheless found time to launch a public attack on desperate teachers and lecturers striking against a savage pensions cut. (York University said all his expenses were vital to the commercial success of the institution.)

Vice-chancellors claim that, "like chief executives", they deserve their huge salaries because theirs is a stressful job. How curious, then, that some others find the time to earn tens of thousands of pounds on the boards of drugs companies and arms dealerships. The notion that such appointments might cause a conflict of interest in how research funding is allocated is dismissed by university bosses as they accept payments from the likes of AstraZeneca and Shorts.

British universities now see themselves as companies: in order to boost profits, many have turned their attention to the £26,000 annual fees that can be squeezed from a rich minority of non-EU students. Agents are paid on commission to peddle degree services aggressively in India and the Gulf, and many universities are opening franchises abroad.

Consumerversities

Let's join some dots. The coalition government has justified its decision to triple university fees for home students by citing the expansion of student numbers over the past decade. If we want more students to attend, the logic goes, we need to find the extra money from somewhere.

The government promised that only top institutions would charge the full £9,000 but - in a move entirely unforeseen by all but a few hundred thousand protesters - nearly every university has decided to do so. To finance these debts, the coalition may have to cut domestic student numbers and recruit more from abroad, leaving us, as if by magic, with a small pool of rich international student-consumers.

Everything has its price. Our universities were once publicly owned and financed, free for anyone to attend, as much a part of the common wealth of Britain as our forests, rivers and mines. And just like the mines, rivers and forests, higher education is being plundered piece by piece,mortgaging the future of education for short-term profit. No wonder students won't stand for it.

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

This article first appeared in the 11 April 2011 issue of the New Statesman, Jemima Khan guest edit

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Jeremy Corbyn's Labour conference speech shows how he's grown

The leader's confident address will have impressed even his fiercest foes. 

It is not just Jeremy Corbyn’s mandate that has been improved by his re-election. The Labour leader’s conference speech was, by some distance, the best he has delivered. He spoke with far greater confidence, clarity and energy than previously. From its self-deprecating opening onwards ("Virgin Trains assure me there are 800 empty seats") we saw a leader improved in almost every respect. 

Even Corbyn’s firecest foes will have found less to take issue with than they may have anticipated. He avoided picking a fight on Trident (unlike last year), delivered his most forceful condemnation of anti-Semitism (“an evil”) and, with the exception of the Iraq war, avoided attacks on New Labour’s record. The video which preceded his arrival, and highlighted achievements from the Blair-Brown years, was another olive branch. But deselection, which Corbyn again refused to denounce, will remain a running sore (MPs alleged that Hillsborough campaigner Sheila Coleman, who introduced Corbyn, is seeking to deselect Louise Ellman and backed the rival TUSC last May).

Corbyn is frequently charged with lacking policies. But his lengthy address contained several new ones: the removal of the cap on council borrowing (allowing an extra 60,000 houses to be built), a ban on arms sales to abusive regimes and an arts pupil premium in every primary school.

On policy, Corbyn frequently resembles Ed Miliband in his more radical moments, unrestrained by Ed Balls and other shadow cabinet members. He promised £500bn of infrastructure investment (spread over a decade with £150bn from the private sector), “a real living wage”, the renationalisation of the railways, rent controls and a ban on zero-hours contracts.

Labour’s greatest divisions are not over policy but rules, strategy and culture. Corbyn’s opponents will charge him with doing far too little to appeal to the unconverted - Conservative voters most of all. But he spoke with greater conviction than before of preparing for a general election (acknowledging that Labour faced an arithmetical “mountain”) and successfully delivered the attack lines he has often shunned.

“Even Theresa May gets it, that people want change,” he said. “That’s why she stood on the steps of Downing Street and talked about the inequalities and burning injustices in today’s Britain. She promised a country: ‘that works not for a privileged few but for every one of us’. But even if she manages to talk the talk, she can’t walk the walk. This isn’t a new government, it’s David Cameron’s government repackaged with progressive slogans but with a new harsh right-wing edge, taking the country backwards and dithering before the historic challenges of Brexit.”

After a second landslide victory, Corbyn is, for now, unassailable. Many MPs, having voted no confidence in him, will never serve on the frontbench. But an increasing number, recognising Corbyn’s immovability, speak once again of seeking to “make it work”. For all the ructions of this summer, Corbyn’s speech will have helped to persuade them that they can.

George Eaton is political editor of the New Statesman.