This essay examines the interplay between public and private funding in Eng
lish higher education. It argues that English higher education has reflecte
d a tension between institutional diversity and a particular 'university id
eal'. The absence of serious 'for-profit', private competition contributed
to dependency upon the state. As public funding has diminished, the 'univer
sity ideal' has given way to the marketplace, with sweeping consequences fo
r the system as a whole.