ABSTRACT
British higher education is in a curious state. Compacts are not unknown in UK public policy. This chapter discusses the tensions and contradictions in the higher education system and warn against any simple argument that compacts will work. Harsh truths have to be faced about the nature of higher education and its financing, about the political economy of class and inequality, about the perennial evasions of governments of all parties, as to who bears the burden of higher education and of course the pathetic leadership of higher education institutions. An elitist higher education system based on privilege had high costs and restricted units. Universities would sign contracts with their students to deliver specific types of education, with guaranteed tutorial supervision and pastoral care. The Major government saw the crisis in funding but flunked the challenge. There is more radical alternative but it takes beyond the narrow confines of higher education finances.
