Private universities are needed to increase the number of places for students.  British universities are facing cuts in government funding and as a result there will be no new places created to cater for rising demand. Professor Steve Smith, president of Universities UK noted the fact that the budget cuts that could soar to as much as £950,000,000 over three years would decrease the quality of education whilst keeping the numbers of University places stagnant. In 2009, 160,000 students who applied did not go to University. In 2010, 75,000 more people applied.1 Governments in rich countries all over the world are facing squeezed budged over the next few years and will be unable to increase funding for universities. This leaves private universities as the only way to meet increasing demand for higher education.  1Shepherd, 2010