alan langlands 26 november 2010. review of the year
TRANSCRIPT
Alan Langlands26 November 2010
Review of the year
Q. In your opinion, how important is it, if at all, for the government to invest in UK universities?
Source: Ipsos MORI
Important 90Not important 8Net importance +82
Netdifference
%
Base: 2,003 British adults aged 15+, 30 July - 5 August, 2010
Nine in ten of the public think it is important for the Government to invest in universities___________________________________________________________________________________________________________________
very important
don’t know
fairly important
not very important
not at all important
£59 billion economic impact
the enterprise university
Widening participation____________________________________________________________________________________________________________________
Supporting strategic subjects____________________________________________________________________________________________________________________
Global leadership in research__________________________________________________________________________________________________________________
Wider contribution of higher education________________________________________________________________________
Wider contribution of higher education________________________________________________________________________
Development of our professions…
…cultural and social impact
…contributionto sustainable development
sector has strong cash balances and healthy levels of reserve
income up by average 7.4% pa over past decade to reach a total of £21bn in 2008-09
– of which student fee income from Home/EU students was less than 9%
average operating surplus of just 1.3% of total income over the last decade
total support to institutions at higher risk less then £4M per annum – less than 0.1% of HEFCE funding
Financial health___________________________________________________________________________________________________________________
Challenges for the future
£2.9bn (40%) reduction from £7.1bn Higher Education resource budget by 2014-15 plus reductions in other HEFCE funding lines
other cuts in public spending that will impact on higher education
a tough deal for students, graduates and their families
– higher fees up to £9k
– graduates pay less each month but pay for much longer
institutional response – need for new and innovative business models
re-work of the 1992 Act
Future challenges___________________________________________________________________________________________________________________
Transition issues________________________________________________________________________________________________________________
resource allocation in 2011-12
teaching funding policy from 2012-13
access to higher education
quality and public information
research and HEIF
institutional and sector sustainability
Changing for the future_______________________________________________________________________________________________________________________
system change
- a new paradigm for higher education funding
legislative change
- increasing the fee cap; new interest rate; a rework of the 1992 Act
organisational change
- the development of ‘Student Finance’ and (possibly) The Higher Education Council
An exacting timetable_______________________________________________________________________________________________________________________
effective management of 2010-11 and 11-12
White Paper on future strategy of HE by March 2011
legislation introduced for reforms by May 2012
new funding settlement by August 2012
new constitutional arrangements by August 2013
Key risks_______________________________________________________________________________________________________________________
political/ Parliamentary delays
public reaction
universities fail to respond with new business models
higher education loses credibility in the capital markets
loss of reputation/ international competitiveness (learning and teaching and research)
loss of financial flexibility
administrative failure
Testing times for Governors and senior managers
not losing sight of our core purpose
addressing and mitigating risks
discharge our funding and regulatory responsibilities in a fair and proportionate way
support institutions through the change process
tackle the unintended consequences of the new ‘market’ model
synchronisation of HEFCE funding cuts and the implementation of the new funding settlement with least damage to students, education, science and research
provide people with clear and unambiguous information
Orderly transition_______________________________________________________________________________________________________________________
Interests of students are paramount_______________________________________________________________________________________________________________________
“If you value the world simply for what you can get out of it, be assured that the world will in turn estimate your value by what it can get out of you……”(Arthur Hadley, President of Yale University from 1899 to 1921)
“If we value our students simply for what we can get out of them or what they might earn in the future, be assured that they will in turn estimate our value by what they can get out of us…..”
