UK Business Lobby Says Students Should Pay More

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The rapid rise in student numbers along with a severe strain on public finances makes current public funding levels for higher education in the UK unsustainable, a report by the Confederation of British Industry's Higher Education Task Force said Monday.

The report said providing tuition fee loans at the government's cost of borrowing, after removing the interest rate subsidy, could result in GBP 1.4 billion saving per year. The group also said maintenance grants should be focused on those most in need. The report says an increase in fees, from the current level of more than GBP3,000 per year, appears "inevitable".

While rejecting the three options available to the government to fund higher education, which are cutting research funding, slashing teaching budgets and reducing student numbers, the task force recommends that savings should come from the student support system. It also urged businesses to sponsor students studying subjects relevant to business and offer more interships, placements among others. The task force also sought the abandonment of the government's target for 50% of 18-30 year-olds to participate in higher education.

Richard Lambert, CBI Director-General said, ""The economic downturn makes cuts to public funding for HE inevitable, so new sources of funding have to be found."

(Market News Provided by RTTNews)