Report 99/34

Restructuring and Collaboration Fund: Progress report on approved projects

Executive summary

Purpose

1. This report summarises the progress of the projects approved under the Council’s Restructuring and Collaboration Fund up until the end of January 1999. It includes contact details to obtain further information on individual projects.

Key points

2. The Restructuring and Collaboration Fund has been operating for nearly two years, funding restructuring and collaborative activities in a range of higher education institutions (HEIs). The fund was established initially to support major structural changes in HEIs, but now extends to support collaborative activities involving HEIs.

3. The fund was originally announced to the sector in July 1996. A sum of £10 million was set aside for the fund in 1997-98, and a further £15 million in both 1998-99 and 1999-2000. Subject to the availability of resources overall, we expect to continue the fund at about £15 million a year.

Action required

4. No action is required. This report is for information.

Background

5. The Restructuring and Collaboration Fund was established in 1997-98 for use in circumstances where strategic change was needed and could not be achieved without Council support.

6. Initially, two criteria underpinned the fund: major changes to the academic portfolio; and major constitutional change, particularly merger. The criteria were revised in April 1997 and again in May 1998, when support was extended for collaborative arrangements between HEIs, and specifically for administrative support underpinning consortium arrangements between HEIs.

Purpose and criteria

7. The overarching purpose of the fund is to facilitate constructive development, at a strategic level, in relation to the structure and organisation of HEIs and the sector. The fund cannot, of course, support all change in HE. It remains primarily for HEIs to identify where development is needed, and to pursue change from their own resources. Both institutions and the sector must remain dynamic, constantly searching for ways of developing and improving for the benefit of students, research activity, and the wider community interest.

8. However, there are circumstances where strategic development would be beneficial, but where the institutions concerned do not have the resources to undertake it alone without damage to their other priorities. That is where the fund can help. It is not designed to support marginal adjustments and routine development which institutions should pay for themselves. Nor is it primarily designed to support changes in the way teaching, research or other activities are carried out. Rather, its focus is on strategic and innovative change at the organisational and structural level.

9. The five specific criteria which now underpin the Restructuring and Collaboration Fund are:

a. Major changes to the academic portfolio.

b. Major constitutional change, particularly merger.

c. Institutional restructuring with sufficiently innovative aspects to be of general benefit to the sector.

d. Structural realignments within institutions.

e. Collaborative arrangements between higher education institutions.

10. A number of the projects funded so far have supported the merger of two institutions. Annex A to this report contains a policy statement giving more detail on the HEFCE’s approach to mergers involving HEIs.

11. Projects under the collaboration criterion have to involve at least one HEI, and normally the collaboration is between two or more HEIs, although partners outside the HE sector can also be involved.

12. Since the purpose is to facilitate change, funding is only for a limited period, normally a maximum of three years for any given project.

Application process

13. We do not invite competitive bids for the fund. So far we have deliberately not formalised the procedures into an annual bidding round, so that we can respond quickly to proposals and opportunities as they arise. A proposal can be submitted, and approved, at any time during the year. This means, of course, that money may not be available, because the funds for the year have already been allocated.

14. As familiarity with the fund grows, it is likely to become increasingly competitive. For the time being we will continue to welcome individual proposals submitted when it suits the institution, and to consider each one on its merits. But we will keep under review whether the number of eligible and attractive proposals exceeds the funds available, to the point where a more explicit element of competition would be sensible to ensure value for money in judging between bids.

15. If an institution wishes to submit a bid for funds, they should in the first instance contact their HEFCE Higher Education Adviser or Regional Consultant, who will provide further details on the fund if necessary and advice on how to proceed. Each institution’s HEFCE contacts can be found on our website at http://www.hefce.ac.uk under "About us".

The electronic version of this publication does not contain the project summaries. The complete printed document is available from HEFCE Publications.