This paper, the first part of an edited version of a Keynote Presentation delivered at the AUA Annual Conference, Queen's University Belfast, on April 11, 2006, describes the fate of UK higher education during the course of the last parliament and identifies New Labour's two successive and contradictory higher education policies. The author comments on three unfinished bits of business with which New Labour has struggled: (1) the funding and organisation of the sector; (2) participation and social justice; and (3) higher education and the public interest. [The second part of this presentation will appear in the next issue of "Perspectives."] (Contains 5 figures.)