Education issues have always been linked to the politics of the day. The Thatcher administration in the UK, which took office in 1979, implemented higher educational reform as part of the administrative and financial reform in 1980's. Her education reform was radical. It started financial reform for universities, which would have a great impact on them, while establishing administrative and management systems for the former polytechnics. The higher education policy designed by the Conservative government led by Thatcher and her successor John Major, was continued even under the subsequent Labour government and still affects universities in the UK.

This paper, by focusing on three actors (government, polytechnics and universities), explores the fundamental reason why the UK adopted a unitary system for UK higher education in relation to concurrent government policies, and discusses the current situation of the UK universities resulting from the unification, since it is very important to consider the situation now and in the future of universities in the UK.