Bold reform needed to transform universities facing critical financial pressures - Universities UK
|
University leaders need to embrace – and lead – change in the way
they operate, according to a report from the taskforce set up to
explore how universities can work together to unlock efficiencies
and drive transformation. The report, “Towards a New Era of
Collaboration” is the result of work initiated by Universities UK
and led by independent Chair Sir Nigel Carrington. It calls for a
fundamental shift in thinking, with a much greater focus on how
universities...Request free trial
University leaders need to embrace – and lead – change in the way they operate, according to a report from the taskforce set up to explore how universities can work together to unlock efficiencies and drive transformation. The report, “Towards a New Era of Collaboration” is the result of work initiated by Universities UK and led by independent Chair Sir Nigel Carrington. It calls for a fundamental shift in thinking, with a much greater focus on how universities across the UK can work together, share services and assets, and collaborate in the national interest. It identifies seven opportunities open to the university sector, and the action needed from central government to enable universities to drive such change. A cocktail of financial challenges - years of frozen income on teaching and research, high inflation and a drop in international students following government policy changes - have left university finances in serious distress. Universities have had to evolve and adapt, and arecent survey of UUK members showed how universities have been responding individually with significant action to cut costs, through the removal of courses, modules, reduced investment and scaling back on some research activity. While such measures have already delivered significant savings, the Taskforce warns that the continued delivery of efficiencies at an institutional level cannot alone solve the financial challenges facing institutions. Innovative partnership working will be needed across the sector, along with a sustainable funding settlement from government. The Taskforce outlines opportunities to begin a bold reform process based on the principles of collaboration. Sir Nigel Carrington, Chair of the Taskforce, said: “Universities are ambitious to drive transformative change, and I've been struck by their considerable appetite, in the fact of unprecedented financial challenge, to think and work differently to protect the strengths of our world leading sector, to deliver even better value for public money, and to continue to improve the experience for students. “The focus of the previous UK government for more than a decade, on competition between institutions – whilst supporting for student choice – has also created barriers to transformation through collaboration. “We need to make sure the balance between competition and collaboration is right if we are to secure a sustainable future. Universities are clearly ready to think differently, and it is our job, and the job of government, to support them as they do so." The report identifies seven key opportunities for transformation, amongst which is the exploration of novel collaborative structures between institutions. At one end of the spectrum this could extend to mergers, but the report is also clear that this is unlikely to be a workable or desirable solution in most cases. Instead, the Taskforce outlines other options for strategic, proactive collaborations which continue to preserve competition. This could take the form of federations, group structures between aligned or geographically linked institutions, or partnerships on certain functions and disciplines. The Taskforce also suggests universities consider shared provision of some teaching, particularly to preserve vulnerable disciplines and avoid ‘cold spots' - geographical areas where some subjects cannot be accessed at all. As well as unlocking cost savings, this kind of structural integration which pools universities' expertise can create opportunities to meet local skills needs, solve research challenges, keep lower demand but strategically important subjects going and align with the ambitions of business and government. There are already great examples of such collaboration to meet local needs, including the partnership between the Universities of Bath and Plymouth, with the former delivering its MPharm course both in Bath and at the University of Plymouth, in response to low numbers of Pharmacists in the South West. In Cornwall, which historically has low levels of higher education participation, the Penryn Campus is run as a joint venture by the University of Exeter and Falmouth University, complementing their separate existing campuses. Many facilities including halls of residence, leisure facilities, and some teaching and learning spaces are shared, enabling both universities to offer a diverse range of degree programmes while contributing to regional skills development and retention in Cornwall. Beyond calling for more collaborative structures, the Taskforce has set out a series of other opportunities that would help universities drive even greater efficiencies:
The report emphasises that universities are ambitious to make this evolution and calls on government to remove the barriers that prevent a truly transformative shift. It identifies a landscape, created by prior UK governments, which has effectively disincentivised collaboration between universities – most particularly English institutions. The Taskforce is already taking action to support universities to adopt further partnership working, including developing business cases for shared services and delivering guidance and specific resources from independent experts on transformative change. However, it also identifies policy and regulatory blockers and costs which are constraining the sector's desire to transform, and where government could act. This includes addressing competition law and removing VAT on shared service provision, while introducing a Transformation Fund to support universities to finance large scale change. It also calls on government to alleviate regulatory cost pressures and address expectations on university to perform unfunded activities. Most of all, ahead of the Comprehensive Spending Review, universities are calling on government to stabilise university finances. Sir Nigel continued: “The sector isn't just talking about efficiency. It is already driving it, and the evidence shows this is well underway. But transformation will need us to take a lead in fundamentally rethinking how higher education operates at a national level, moving from a competitive to more collaborative mindset. “This report, and the work which will follow it, represents a commitment to mutual accountability and to ambitious reform for a sustainable future which continues to deliver prosperity for communities across the UK. “At the same time, we should also be clear that no degree of collaboration and partnership working will negate the sector's need for an improved funding settlement, and we call on government to recognise this in the forthcoming Comprehensive Spending Review.” The Taskforce is clear that success must be a shared endeavour across the sector and with government, and this report is the first of multiple outputs from the Taskforce which will support a long-term commitment to transformation. A comprehensive Phase 2 Implementation Plan will ensure ongoing accountability and momentum through:
Science, Research and Innovation Minister, Lord Vallance, said: “I welcome this report by Universities UK and look forward to seeing more detail on the proposals that will secure a sustainable future for UK universities, recognising the role they play in driving opportunity and economic growth in support of our Plan for Change. “The Government also recognises the sector's challenges and will work with it to seize the opportunities for transformation set out in this report, including removing the barriers to collaboration where we can.” Skills Minister Jacqui Smith said: “Universities are at the heart of our Plan for Change, driving economic growth and breaking down barriers for opportunity. “I am pleased to see the sector gripping the need to transform and operate more efficiently, which we will also address in our forthcoming plans for higher education reform. “These plans will lay out more detail on our expectations regarding collaboration and transformation and I look forward to working closely with the sector to deliver for students as well as supporting the growth and skills which the whole nation needs.” ENDS Notes to editors
|