The rapid expansion of private higher education under the coalition government has been a ¡°good thing¡± and private colleges should be allowed to raise their tuition fees to ?9,000, according to a new report.

The report, by liberal thinktank CentreForum, argues that private institutions have been subjected to unfair regulation in comparison with publicly funded universities, and calls for legislation to establish a single regulatory framework across the whole of higher education.

Public-backed funding for students at private providers has grown from ?30 million in 2010 to a projected ?900 million in 2014-15, in the absence of student number controls and amid concerns about quality at some for-profit colleges.

¡°There is a growing recognition within government and within the established university sector that the continued growth in alternative provision is a good thing ¨C good for extended student choice and employment outcomes; supportive of the government¡¯s broadening access agenda for HE; and a driver of new and innovative HE provision through the growing range of partnerships and collaborations alternative providers enjoy with the established university sector,¡± says the report, written by Stephen Lee, Centre-Forum¡¯s chief executive and professor of voluntary sector management at Cass Business School, City University London.

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But it continues that, in the absence of a higher education bill, private providers face a ¡°restrictive regulatory environment that is inequitable and anti-competitive¡±, citing the introduction of student number controls for the first time this year as an example.

The report¡¯s recommendations include the implementation of an ¡°equitable playing field¡± between all providers via primary legislation to establish ¡°a revised and single comprehensive system of regulation and administration that embraces all HE providers¡±.

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Students at private providers are currently allowed to claim a maximum ?6,000 annual fee loan, compared with ?9,000 for those at publicly funded universities. ¡°Current disparities in tuition fees and loan caps between the established universities and alternative providers should be removed,¡± says the report. ¡°Their imposition distorts the market and is prejudicial to the principles and practice of fair competition.¡±

CentreForum says in the acknowledgements to the report that it is ¡°grateful to GSM London and BIMM¡±, two for-profit higher education institutions owned by private equity firm Sovereign Capital, ¡°for their kind support in this paper¡±.

john.morgan@tesglobal.com