Business Case Studies, Govenrment and Business Environment Case Study, Britain’s Universities,Funding Crisis

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Case Title:

Funding Crisis in Britain’s Universities

Publication Year : 2004

Authors: Dakshi Mohanty & T Phani Madhav

Industry: Education

Region:UK

Case Code: GBE0010

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
In the UK, the tradition of the government funding university education is being questioned. The long held belief was that the responsibility of financing the higher education lies with the government. Typically while the universities incurred £8,000, they were charging only £1,125. The notion seemed to hold good when there were fewer students aspiring for higher education. But the steady increase in the number of students taking to higher education left a chasm between the funding and the costs universities incurred. As a result the universities are experiencing a funding crisis and are losing out their competitiveness. To tide over the crisis the Tony Blair government proposed to introduce a new system called 'Top-up' fees wherein the universities can charge higher fees (up to £3,000) and thereby cover costs.

Pedagogical Objectives:

  • To discuss how the existing funding system is hampering the universities' progress and whether the proposed new system would be able to address the problem.

Keywords : Britain's universities, Government and Business Environment Case Study,Funding crisis, Top-up fees, Low government funding, Oxford University, Cambridge University, Endowments, Revenues from foreign students, Course costs, Repayments, Business Environment Case Study, Funding crisis in Britain's universities

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