This article examines current debates surrounding British higher education funding from a political economy perspective, drawing on "positive" and "institutionalist" political economy. Adopting the lens of political economy enables a critical assessment of the use of terms drawn from economics by many higher education decision-makers. Current discussions embody particular assumptions about the nature of producers and consumers in higher education, the relationship between supply and demand, and the role of information in the higher education "market". They also frequently fail to acknowledge the active rather than passive role of higher education institutions in shaping policy discussions surrounding higher education funding. (Contains 1 table and 3 notes.)