The new UK government has signalled its intention to radically reform the Office for Students (OfS), with a renewed focus on financial sustainability, in work that will initially be led by Sir David Behan.

New free speech duties that had been due to come into force next week will be paused as part of the shake-up, with Bridget Phillipson, the education secretary, promising to tackle “burdensome” regulation in the sector.

Sir David, a civil servant who was formerly chair of Health Education England, has been appointed interim chair of the OfS following the departure of Lord Wharton, a Conservative peer. The search for a permanent chair will be concluded next year.

The independent review of the OfS that Sir David conducted before the general election, whose report has now been by the government, “makes the case for bold regulation” of the sector.

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In a parliamentary statement, Ms Phillipson said the decisions had been made to “ensure a stable future for higher education, with strong regulation that means students can thrive”.

The government will accept the core analysis of the Behan review, Ms Phillipson said, and the OfS will be asked to focus more on its “key priorities” – including monitoring financial sustainability, protecting public money and regulating in the interests of students.

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Diana Beech, chief executive of London Higher, said Sir David’s “extensive experience in regulatory matters and deep understanding” of the sector made him an excellent choice.

“Sir David’s recent work analysing the challenges facing our sector will be invaluable as we navigate the complex landscape of higher education in England. His appointment ensures continuity and stability, which is crucial for both institutions and students alike.”

Alex Proudfoot, chief executive of national representative body for independent providers Independent ����Vlog (IHE), agreed that Sir David’s report and his appointment send a “clear message” that the government expects the OfS to change.

“We agree that the OfS of the future should be a more focused regulator which sets high expectations for the leadership and governance of providers and sets a high bar for when it intervenes directly on an issue itself,” he added.

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Ms Phillipson said her decision to delay further commencement of the controversial ����Vlog (Freedom of Speech) Act 2023 enacted by the previous government would allow her to assess its options, including potentially repealing the legislation.

New duties outlined in the act, which were due to come into effect on 1 August, would have opened the door for universities and students’ unions to be fined and would have required the OfS to intervene much more in campus issues.

Dr Beech said this was a sensible move that would allow the OfS to focus on the sector’s financial sustainability, which should be its priority.

“With a clear need to get its own house in order…the OfS needs to concentrate on carrying out its core duties well, not get bogged down by extra regulation it is not yet prepared for,” she added.

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“The duties set to be inferred on the regulator by the Freedom of Speech Act risked making the OfS run before it could walk.”

patrick.jack@timeshighereducation.com