(2) Expansion of Government Intervention Through Subsidies
Universities in the United Kingdom traditionally enjoyed considerable independence. Although they relied on government subsidies for the bulk of their funding, subsidies were allocated by the University Grants Committee, which consisted mainly of university people. The government abolished this system in 1988, however, and established the Universities Funding Council. Under the new system the Secretary of Education and Employment can establish guidelines for the allocation of subsidies. Members of the council are appointed by the Secretary of Education and Employment. Industry representatives are included, and their views are reflected in decisions. Polytechnics and colleges of higher education, which were formerly administered by local governments, have for the most part been converted into higher education corporations since 1988. Since they operate on government subsidies, they are subject to government intervention in the same way as universities. Initially their subsidies were allocated by a different organization from the one established for universities, but the integration of higher education led in 1993 to the amalgamation of this organization with the Universities Funding Council to create the Higher Education Funding Council.
