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The painful process by which Britain started to come to terms with the effort of living within her income has been paralleled by an equally painful growth in the pressures on universities to show that they give a good return for the money poured into them. Cost‐effectiveness is a phrase that has crept into use with regard to higher education and for the first time pressures are being put on the universities to produce the sort of students the nation's economy needs. The ever‐closer link be‐between education and the country's economy became apparent in the Department of Education's annual report for 1968. It stated bluntly that the growth of education had been deliberately slowed down as a consequence of a decision to ‘divert resources from home consumption to overseas trade and industrial investment.’