It was announced today that Britain is to have its first private university for over thirty years. BPP, which offers law and business degrees at fourteen sites across the UK, will be given university college status with immediate effect and be allowed to grant degrees in a limited range of subjects.

The decision, which was made by universities minister David Willetts, signals the new government’s desire to increase the number of profit-making private higher education institutions. Willetts said: “It is healthy to have a vibrant private sector working alongside our more traditional universities”, adding that this would create a “dynamic and flexible “ degree system. BPP will receive no public funding and will be allowed to set its own fees.

With recent news that up to 170,000 students will miss out on a university education due to a shortage of places, it is hoped that an increase in private institutions would alleviate some of the pressure on places. Although there has been some opposition to the move from the University and College Union who say that institutions should be democratic and publically funded. They also believe that private companies were not subject to the same rigour or public scrutiny as publicly-funded universities

BPP’s chief executive Carl Lygo said: “The education landscape is changing, and over the next decade we will see a different picture emerging, where both students and employers will drive demand for their preferred method of study and training.” Mr. Lygo added: “We see ourselves as a pioneer in this field, and hope that our unique status and self-funding model will lead the way in which other providers will be able to operate in.”

The announcement is the first of its kind since 1976 when the UK’s only current private university, the University of Buckingham, was set up. Today’s decision comes ahead of the review into higher education by Lord Browne, which will be released in October and will tackle issues affecting higher education.