HEFCE Annual Conference 2009

Challenges and opportunities

Sir Alan Langlands, Chief Executive, HEFCE

Good afternoon,

A friend of mine – an historian – suggested that I might prepare for my new post at Hefce by reading Robert Anderson’s ‘British Universities – Past and Present’ , I guess to underline the view that universities both shape and are shaped by our economy and society and to remind me that there are usable lessons to be drawn from the past. Some of you will know that Robert Anderson is the Professor of Modern History at the University of Edinburgh.

Anderson’s book was published in 2006 BCC (before credit crunch) and concludes by asserting that ‘there must be more to university education than the pursuit of individual ambition or economic utility’ and that ‘to make the old ideal live in an expanded and necessarily differentiated university system, where it has to co-exist with vocational training and research driven by outside needs……is a challenge’. Well of course it is – but I believe that it is possible to combine the fundamental truths of education and research with the knowledge and skills required to help the professions, businesses and public services innovate and prosper and to ensure that the research undertaken in universities continues to have relevance and impact.

Anderson also argues that if we are going to succeed in facing this challenge, ‘it can only be by going with the grain of the universities’ own traditions and values’. I broadly agree with this - but on condition that these ‘traditions and values’ are constantly re-appraised and do not become a barrier to positive change. As Hefce Chief Executive, I will always respect the autonomy of universities and colleges. In my view, institutional autonomy should remain at the heart of our system – it is key to the success and resilience of higher education but of course it comes with clear responsibilities and accountabilities.

So Hefce will not be passive – it will continue to be an advocate for all that is good in higher education and research across the country. Our core purpose – set out in the Further and Higher Act 1992 – is to administer funds to support education and research in higher education institutions and higher education programmes in further education colleges. We are also required to provide the Secretary of State with information about teaching and research, including the financial needs of the sector and we have a duty – exercised through the Quality Assurance Agency – to ensure proper assessment of the quality of education in universities and colleges that receive Hefce funding.

One of my personal priorities will be to ensure that Hefce discharges these statutory responsibilities effectively – by working with the sector to ensure high standards of financial stewardship and the integrity of the degree programmes provided by universities and colleges. I will of course be paying particular attention over the next couple of months to the work that Colin Riordan and his sub-committee established by the Hefce board is doing on quality assurance. Ensuring that we always get these things right will give us the legitimacy to make the case for the continued investment required to support the strategic aspirations of individual institutions and the long-term sustainability of the sector as a whole, actively contributing to an environment that continues to achieve:

excellence in learning and teaching
internationally competitive standards of scholarship and research, and
recognition that higher education is an engine of economic, social and cultural development in local communities and across the country as a whole.

We can of course claim success in each of these areas, for example, by acknowledging that, after the US, the UK remains the favoured destination for international students; by basking in the 3 and 4* percentages in the RAE; and by recognising in a new evaluation of the Higher Education Innovation Fund and its precursors that relatively modest funding (2 per cent of Hefce funding to HEIs) unlocked value of £3-4 billion. This is all true, but of course we know that we can go on to achieve more in individual institutions and across the sector as a whole.

As Tim has said we are in uncharted territory – one way or another I have been actively involved in government spending negotiations for the past 15 years and I have never known a less propitious time to be arguing for more public investment. That said, there is an important case to be made for ensuring that universities and colleges play a crucial role in economic recovery, both in the short and long term. I want to work with you to continue to make this point as often and as clearly and professionally as possible. But in case it goes unsaid elsewhere in the conference, our success will depend on being able to show that existing public investment in higher education is used to optimum effect and that we are constantly striving for high standards of leadership, governance and financial stewardship through these straitened times. Of course this is largely down to all of you but the Hefce team will aim to be as helpful and flexible as possible – although no pushover. One step in this direction is the development of a new Leadership, Governance and Management Fund aimed at finding solutions to the challenges of the economic downturn. The fund will support distinctiveness, new business models and new approaches to partnership working with employers, professional bodies and Regional Development Agencies. (There are some details in your conference pack).

More precise public spending parameters for 2010-11 and the likely pattern of spending for the next few years will emerge from the Budget on 22 April and we should be ready to respond as quickly as possible. There appear to be some important stakes in the ground in relation to research funding and the science ring-fence but there is still more work to do in the coming weeks and months.

This conference also comes at an interesting time in the policy development process. As you know the Secretary of State is promoting the development of a new framework for higher education which will address the needs of the economy and society, provide a reference point for future policy decisions and set the context for the first three years of variable fees. I hope that we will hear more about progress on the new framework tomorrow.

It is perhaps wrong to speculate too much about the future just five hours into my new post but I imagine that our strategy will hold fast to the broad direction of:

enhancing excellence in education whilst promoting high levels of participation and fair access – and taking head on the challenges of sustainability set out in the report published in February by Steve Smith and Geoffrey Crossick
supporting world class research – for example by continuing to work with RCUK and others to build strength and depth through the development of vibrant postgraduate research programmes and post-doc communities. It is a bit of an indictment that the trend line for post-graduate research students has been relatively flat over the past ten years, a period of unprecedented investment in the research base. We also need to learn from the universities that have been piloting for the REF and work with partners to ensure internationally competitive research underpinned by a new evaluation system which recognises both the successes and limitations of the RAE.

I hope that Hefce might also work in a developmental way with universities, colleges, other funders and government to respond positively to key trends, for example:

changes in demography – by developing more flexible provision, encouraging more part time study and remodelling curricula to address highly differentiated student markets
the premium on high level skills and innovation – by supporting wider collaboration across disciplines, promoting translational research, encouraging more movement of people and ideas between higher education and industry and treating intellectual assets more like capital – something to be invested or shared to achieve a return, not tightly controlled or hoarded
more enlightened approaches to collaboration, nationally and internationally – by building enduring education and research partnerships, encouraging staff and student exchanges and creating and sharing knowledge which is relevant to global health issues, climate change and energy, food and water security, and
student demand for technology-assisted learning – by developing an approach capable of meeting a wide range of students’ needs perhaps drawing on the success of JISC technologies, the capabilities of the Open University, lessons learned from a range of local initiatives and opportunities for new alliances at national and international level

Finally, in the current climate my aim will be to work quickly and collaboratively drawing on the best expertise wherever it can be found. And of course we embark on this journey at a time of considerable change with Ian Watmore being replaced as Permanent Secretary at DIUS over the next couple of months, Stephen Marston (who is here today) taking over from Ruth Thompson in the expanded DIUS directorate for Universities and Skills, and Diana Warwick (who is also here) standing down in July as Chief Executive of Universities UK. Not content with this level of change, Steve Smith is to become the new President of UUK and Michael Arthur, Paul Wellings and Janet Beer are taking over at the Russell Group, 1994 Group and the Alliance respectively. I look forward to working closely with all of you (and of course with others who remain in post) as we tackle the opportunities and challenges that lie ahead.

I am also pleased to be working with Tim Melville-Ross, the Hefce Board and a very strong team in Bristol and London. It was their commitment and enthusiasm that encouraged me to take this post and I intend to relish it. For the avoidance of doubt, I will work with the Hefce team:

to build effective working relationships with all of you, the Government, the Research Councils, other funders and regulators
to ensure that the sector keeps moving forward, whilst always respecting the autonomy of universities and colleges
to give clear, independent and, if necessary, robust advice to the Secretary of State based on evidence and experience
to make sure that the quality of learning and teaching is secured for the future
to build our research capability, protect the dual support system and develop a workable approach to evaluation
to show leadership in policy development and the dissemination of good practice.

Thank you for listening and I look forward to working with you.

Alan Langlands
30 March 2009

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Last updated 3 April 2009