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HEFCE Circular 20/96

Institutions' Strategic Plans: Analysis of 1996 Submissions

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To Heads of HEFCE-funded Institutions
Heads of DENI-funded Universities

Of interest to those responsible for Planning, Estates, Research, Student data, Staff data

Reference 20/96
Publication Date November 1996

Enquiries to:
Strategic Plans: Regional Officers
Estates Analysis: Jacqueline Carroll (0117 931 7426)

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Executive Summary

1. This circular provides feedback to institutions on the aggregate picture revealed by institutions' 1996 submissions of strategic plans, student and staff number forecasts and estate returns.

2. The strategic plans reveal that:

• a. Institutions are adopting a wide variety of measures to improve cost-effectiveness in the delivery of teaching and learning, including increasing emphasis on student-centred, resource-based learning and flexibility in mode of provision.
• b. They are also adopting varied measures to widen participation, including links with other educational and community organisations, flexibility in the delivery of teaching and learning, and targeted student support and provision of facilities.
• c. There is a considerable increase in activity in response to the Technology Foresight Programme.
• d. Institutions are placing increasing emphasis on meeting educational and training needs within their region, contributing to economic prosperity and participating in the social and cultural development of their region.

3. The student and staff number forecasts reveal that:

• a. Higher education institutions are forecasting to recruit within their overall MASN in 1996-97.
• b. A small proportion of institutions are forecasting growth in the numbers of undergraduate award-holders in 1997-98; many are forecasting substantial growth in the numbers of part-time and overseas student numbers. Institutions will need to have contingency plans in case those forecasts prove over-optimistic.
• c. Institutions are forecasting reductions in total FTE staff numbers of at least 2,600 (1.3 per cent) during the planning period, most of them in 1996-97 and 1997-98.

4. The estate returns reveal that:

• a. The sector's estate is approximately 9 million m2; it provides over 200,000 bedspaces and has a total insurance value of over £16 billion.
• b. There is a significant drop in provision for building maintenance, in particular a drop of 23.4 per cent for long-term, non-residential maintenance after 1997-98.
• c. The majority of institutions take space management seriously and see it as a tool to ensure greater intensity of use.
• d. The sector has development proposals estimated to cost over £2.6 billion. It also estimated that some £2.7 billion is needed to solve existing estates problems. However, these figures may include some duplication.

Background

5. Circular 7/96 'Strategic Plans and Financial Forecasts' asked institutions to provide the Council with copies of their strategic plans and with detailed financial forecasts covering the period 1994-95 to 1999-2000. A summary analysis of the financial position of the higher education sector was published in Circular 15/96 'Analysis of 1996 Financial Forecasts'. This circular provides feedback to institutions on the aggregate picture revealed in the strategic plans, student and staff number forecasts and estate returns.

Strategic Plans

6. Institutions' strategic plans were analysed to identify both areas for discussion with individual institutions, and sector-wide developments and trends. The institution-specific information helps the Council to assess the coherence and integration of the strategies of individual institutions, and their consistency with national policy objectives; to assess the prospective financial health of those institutions; and to consider specific institutional proposals. This circular is concerned with developments and trends across the sector as a whole.

7. The Council expects institutions to produce strategic plans as a matter of course for their own purposes. It does not approve these plans. Circular 7/96 did, however, ask institutions to provide information on a number of specific issues:

• innovations in teaching and learning
• approaches to access and widening participation
• the Technology Foresight Programme
• local and regional developments
• the reform of initial teacher training (ITT).

8. Proportions and percentages given in this analysis are indicative. An element of interpretation is inevitable, because of variations in institutions' reporting practices and in the amount of evidence provided.

9. Not all developments are relevant to the full range of higher education institutions. This analysis therefore provides summary details according to different classifications of institutions: former UFC institutions (including the separate schools and colleges of the University of London and the two universities in Northern Ireland), former polytechnics, general colleges and specialist colleges. Within these broad classifications, the institutional missions are diverse.

Main Developments Planned by Institutions

10. At a sector level, the main developments planned by institutions are unchanged from those in 1995 strategic plans. The foremost concern over the planning period remains the delivery of teaching and learning, identified as a key area in a large majority of institutions. The two other main areas of development are the enhancement of research quality and activity, and institutions' regional role and collaborations.

Innovations in Teaching and Learning

11. A large majority of institutions discussed their plans to develop teaching and learning. Activities highlighted included:

• a. The rationalisation of provision and introduction of new programmes of study.
• b. The shifting emphasis from teaching to learning, student-centred approaches focusing on learning outcomes, and the extensive use of IT and multi-media technologies in resource-based delivery of programmes.
• c. The enhancement of quality and review of internal quality assurance systems.
• d. Use of modularity and credit transfer schemes to allow flexible modes of delivery and customised programmes of study.
• e. An emphasis on life-long learning through expansion of continuing education, and continuing professional development.

12. Over 70 per cent of institutions described plans for rationalising course provision and introducing new programmes. Such developments covered all modes and levels of study, but particularly the increasing availability of programmes through part-time routes and the expansion of continuing education and professional development. A number of institutions planned changes to faculty structures, following merger or incorporation of colleges of health.

13. Over two-thirds of institutions, particularly among former polytechnics and general colleges, described their increasing emphasis on student-centred, resource-based learning. Discussion covered developing and implementing information strategies; developing learning resource centres; extending IT facilities, including in student residences; remote access to computer networks, including at associate colleges; exploiting JANET, SuperJANET, and the World-Wide Web; and using CD-ROM, multi-media and computer-aided learning materials. Over a quarter of institutions stated that they were looking to incorporate the outcomes of TLTP projects in their courseware.

14. Over 60 per cent of institutions discussed their plans to increase the availability of programmes through part-time modes, including open, distance or work-based learning. This was facilitated by modular course structures and by the development of new technologies to deliver teaching and learning.

15. Some 60 per cent of institutions indicated that provision was fully or partially modular: most undergraduate courses are now modular and a number of institutions are looking to extend modularity to postgraduate courses. Institutions also discussed the development of credit-based systems, particularly the European Credit Transfer Scheme, although some institutions only related such systems to continuing education provision. A quarter of institutions indicated that by the start of the 1996-97 academic year they would have changed over completely or partially to semesters; a small number intended to change later in the planning period. This was accompanied by the development of modular frameworks. Overall, discussion of modular systems, semesters and credit accumulation and transfer schemes was less frequent than in the 1995 submissions: institutions have moved from planning to implementation.

16. A number of institutions already have a 12 hour teaching day and others are extending some teaching into the weekend. This is frequently supported by 24 hour access to libraries and computing facilities. Some institutions are also investigating the possibility of extending teaching over the summer to provide accelerated, induction or revision courses.

17. Some 70 per cent of institutions described their increasing emphasis on professional or vocational education and on lifelong learning. Such provision is increasingly linked with institutions' general modular schemes. A small number of institutions are looking to develop NVQs at levels 4 and 5. Institutions' commitment to lifelong learning is being supported by expanding part-time provision, in particular open, distance and work-based learning. Institutions are making available to all students modules in transferable or employment-related skills, particularly IT and language skills. Some institutions are also offering all students a period of professional placement or of study abroad.

Approaches to Access and Widening Participation

18. Some 60 per cent of all institutions, including over 80 per cent of former polytechnics and general colleges, have a stated aim to widen access. These aims are of three broad types:

• a. To increase participation in higher education among the local community.
• b. To promote equality of opportunity and the participation of under-represented sections of society, classified by ethnicity, gender, age, disability, religion or social background.
• c. To improve access for those without standard entry qualifications, for example through the accreditation of prior (experiential) learning.

19. Around 40 per cent of institutions referred to the existence of an admissions policy, compared to 20 per cent in 1995. These included policies to co-ordinate work on entry standards, admissions procedures and marketing; measures to protect and enhance institutions' position as regional providers, through compacts and other links with FE colleges and schools; promotion of equal opportunities; accreditation of prior learning; and assessment of potential and motivation. A number of institutions said that student surveys and the monitoring of admissions and progression informed their marketing policies. Just under half of all institutions, including three-quarters of former UFC institutions, also detailed specific targets for widening access to particular groups. This compares with only a fifth of all institutions in the 1995 submissions. There was a broad balance between targets relating to ethnicity, age, gender and disability.

20. Some 70 per cent of institutions provided details of measures designed to encourage wider access to HE. The main activities were:

• a. Marketing initiatives, particularly through links with other educational institutions and organisations. This included regional networks involving schools and FE colleges to facilitate pathways to HE, often with a focus on under-represented groups; compact and outreach schemes with schools to encourage students from disadvantaged backgrounds; links with community organisations to encourage recruitment from particular under-represented groups; and open days.
• b. The provision of courses by associate and franchised colleges to bring HE into new geographical areas, sometimes involving remote access to institutions' IT networks.
• c. More flexible delivery of teaching and learning. This included modular course structures, credit accumulation and transfer schemes, and the accreditation of prior learning to facilitate flexible entry and exit points, and progression routes; more part-time, distance and open learning and work-based learning; extensions of the teaching day and week into the evening and weekend; and summer schools and block-release courses. These measures were particularly aimed at those with work or family commitments.
• d. The provision of continuing and liberal adult education, foundation and access courses and continuing professional development, designed to recruit mature students without standard academic qualifications. There were also language courses for students for whom English is a second language.
• e. Improving student support. This included providing nurseries, advice through welfare offices, bursaries and scholarships, and better facilities and physical access for those with learning difficulties and disabilities,.

21. Over 20 per cent of institutions outlined their plans for students with learning difficulties and disabilities. Discussion focused on the requirements of the Disability Discrimination Act, accessibility of buildings, provision for those with visual or hearing difficulties or dyslexia, the development of IT and multi-media learning aids, staff training and the work of welfare and disabilities officers.

22. Some 20 per cent of institutions highlighted barriers to access. These included:

• a. Financial hardship of students, particularly in London.
• b. Reductions in the number of discretionary awards.
• c. Funding arrangements which do not allow for the higher risk that some students will not complete.
• d. The cost of minor works to make buildings accessible to all students.

Research and the Technology Foresight Programme

23. Improving research quality and activity was identified as a key area of development in a majority of institutions, particularly former UFC universities and specialist colleges. There was an emphasis on providing research management and infrastructure to support a research culture in targeted areas. Many institutions, particularly in the former UFC sector, specified targets for departments in the Research Assessment Exercise and in response to the Government's Technology Foresight and Forward Look Programmes and the EU Framework IV. Specialist colleges and former polytechnics gave priority to encouraging a culture of research, particularly in highly targeted areas.

24. Other key activities included expanding postgraduate student numbers; organising graduate studies in graduate schools; strategies to increase income from research and development and consultancy services; and the recruitment, retention and development of high quality research staff.

25. Two-thirds of institutions referred to the 1993 Science, Engineering and Technology White Paper 'Realising our Potential' or to the Technology Foresight Programme (TFP). This compares with only a quarter of institutions last year. Reference was made by some 80 per cent of former UFC institutions and over 70 per cent of former polytechnics: there was much less comment from specialist colleges, whose provision may not relate to the TFP priorities. While little specific reference was made to the steering group report, over a quarter of institutions referred to the reports of the 15 sector panels. Many identified areas relevant to the TFP priorities in which they are active and described how the priorities were influencing new research proposals.

26. The TFP was linked to resource allocation for research by some 40 per cent of institutions and for teaching by 15 per cent of institutions. A small number only discussed bids for funds from, for example, Foresight Challenge. However, many institutions' internal distribution of research funding is influenced by the TFP, to support selectively areas of national priority and institutional strength and to pump-prime multi-disciplinary research initiatives. A small proportion described their investment in specialised equipment to support research centres and their bids to the Joint Research Equipment Initiative. However, the recent cut in capital equipment funding was expected to have a detrimental effect on research effort.

27. Up to 20 per cent of institutions indicated that the TFP was influencing curriculum development, more commonly at postgraduate, but also at undergraduate level. This included training in research skills, modules or courses to support some of the subject-specific priorities, and collaboration with industry in course development and delivery to enhance transferable skills.

28. Some 60 per cent of institutions, including nearly 80 per cent of former UFC institutions, described their plans to develop interdisciplinary or multi-disciplinary research:

• a. About half of all institutions described their strategies for fostering interdisciplinary research internally, most commonly by establishing graduate schools, interdepartmental research centres and institutes, and allocating resources selectively.
• b. Interdisciplinary research collaborations between institutions, nationally and internationally, were identified in 30 per cent of strategic plans. These included the establishment of cross-institutional research centres and institutes.
• c. Over half of all strategic plans discussed research collaborations with other organisations. These included regional, national and international bodies from commerce and industry, charities, the professions and the public sector. Activities included programmes such as LINK and Teaching Company schemes, Research Council and EU programmes.
• d. Over half of all strategic plans, particularly by former polytechnics, discussed increasing interactions with users of research, through consultancies, contract work, research programmes and training. Many institutions placed a new or increasing emphasis on marketing their training, research and consultancy services. This was partly in response to reduced Government funding.

Local and Regional Developments

29. Over 70 per cent of institutions, including over 90 per cent of former polytechnics, referred to their local or regional role. Discussion included raising institutions' profile in their regions, but was primarily focused on providing education and training, and contributing to economic, social and cultural development.

30. Over 60 per cent of institutions, particularly former polytechnics and general colleges, discussed their activities in meeting the educational and training needs of their region. A number aim to be the main source of HE provision in their region, in part reflecting the increasing trend for students to study from home. Others, particularly former UFC institutions and some specialist colleges, emphasise their development as national or international centres of excellence. For these, provision targeted at the region is in continuing education and professional development.

31. The main activities identified by institutions in meeting regional education and training needs are:

• a. Widening access for the regional community. Measures adopted included outreach schemes, compacts, and the establishment of progression routes through links, associations and franchise arrangements with schools and FE colleges. A small number of institutions mentioned college-based 'outposts' where HE is delivered extensively through IT network links.
• b. Increasing flexibility in mode of study, with more part-time and distance learning and work-based learning. This is facilitated by modular courses and credit transfer schemes, including the accreditation of prior learning.
• c. Expansion of continuing (vocational) education and professional development, including collaboration with employers and professional bodies.

32. Over half of all institutions, including over 75 per cent of former polytechnics, referred to their role in contributing to the economic prosperity of the region. Discussion focused on:

• a. Institutions' role as major employers, which attract people and resources to a region.
• b. Meeting the education and training needs of local employers, particularly to support small and medium enterprises.
• c. Fostering technology transfer and collaborative research with industry, for example, through the development of science or business parks and through Teaching Company schemes.
• d. Involvement with local business communities and representative bodies, such as chambers of commerce and industry, local authorities, training and enterprise councils and development agencies. A number of institutions are involved in bids for Single Regeneration Budget funding.

33. Almost half of all institutions referred to their role in contributing to the social and cultural development of their region. This included:

• a. Making available sports facilities, museums and galleries, drama, musical performances, and exhibitions to the wider community. Some institutions are involved in regular arts festivals in collaboration with local arts and educational organisations.
• b. Providing continuing education courses.
• c. Maintaining listed buildings, landscapes and the quality of the environment.
• d. Voluntary community work by students and others.

34. All these activities are marked by extensive collaboration with a wide range of other institutions and private, public and voluntary sector organisations. Over 80 per cent of institutions described such links. For example, over 60 per cent discussed their links with FE colleges in franchising out (commonly sub-degree) provision, and in widening access and encouraging progression routes into HE. Nearly 40 per cent, including some 70 per cent of former polytechnics, referred to their links with training and enterprise councils in co-ordinating vocational training and working on a range of economic development programmes aimed at small and medium enterprises.

Other Developments Planned by Institutions

35. Besides developments relating to teaching, learning, research and regional roles, other significant elements in institutions' strategies included:

• a. Measures to protect financial health, by increasing income-generating activities and seeking new sources of income (such as the provision of conference facilities, consultancy services and other commercial activities); increasing cost-effectiveness in the delivery of academic programmes; delaying capital projects and freezing numbers of permanent posts; and reviewing marketing strategies.
• b. Estate development, rationalisation and enhancement.
• c. Developing information systems and learning resources; implementing an information systems strategy; developing information technology and communications facilities, including local and metropolitan area networks.
• d. Their international role, which included enhancing their international reputation, responding to opportunities in Europe, expanding recruitment of overseas students, participating in student exchange schemes, and developing links and partnerships with institutions abroad.
• e. Strengthening administrative systems and structures.
• f. Aspirations for university status among general colleges and for degree awarding powers among other colleges.
• g. Implementing human resource strategies, including working towards the Investors in People award.
• h. Objectives relating to the social, cultural and moral development of students.

Use of Strategic Plans to Inform HEFCE Resource Allocations

36. Circular 7/96 'Strategic Plans and Financial Forecasts' stated that the Council is considering greater use of institutions' strategies to inform its resource allocations. The Council has in the past looked for consistency with strategic plans in considering bids from institutions under particular initiatives. Three-quarters of the 1996 submissions were in sufficient detail to give a clear understanding of institutions' plans, although they were based on assumptions about policies on student numbers and HEFCE's current funding methods, which may change. A small number of institutions made optimistic assumptions, for example about increases in MASNs, part-time or overseas student numbers. Such institutions will need to have contingency plans in case such targets prove over-optimistic.

37. A small proportion of institutions are planning academic developments for which they will seek HEFCE support. Institutions were asked to provide specific details about their recent and planned recruitment to ITT courses to inform any HEFCE allocations for structural diversification. As in 1995, a significant number of institutions are looking to reduce the length of their ITT courses, by replacing four-year undergraduate with three-year undergraduate ITT courses or with one-year PGCEs. The consequent reduction in ITT student numbers allows institutions to build up provision in other Academic Subject Categories (ASCs) without increasing MASNs. The HEFCE's continued support for such diversification will be considered in the light of the 1996 Budget settlement. Institutions should continue to assume that support for diversification will be available only as a consequence of changes in ITT course length; any additional HEFCE-funded student numbers will not necessarily be accompanied by increases in overall MASNs.

38. Other academic developments for which institutions have indicated they may seek HEFCE support include the expansion of part-time student numbers and regional developments such as a new campus.

Forecasts of Student and Staff Numbers

Student Numbers

39. Appendix A summarises forecast student numbers in England and compares them with Maximum Aggregate Student Number (MASN) allocations and the 1995 DfEE Budget assumptions.

40. It shows that:

• a. Recruitment by HEIs as a whole is forecast to be 0.7 per cent below the 1996-97 MASN (Table 1).
• b. HEIs are forecasting annual increases in award-holders of 1-2 per cent throughout the planning period; the Government's 1995 Budget assumptions for award-holders show a slight reduction in 1997-98 (Table 2).
• c. Institutions' forecasts of student numbers on a full-time equivalent (FTE) basis exceed those assumed in the 1995 Budget by an increasing margin each year (Table 3). This is mostly due to increases in part-time provision.

41. The sector as a whole was forecasting to recruit within the 1996-97 MASN, but 20 institutions were forecasting to exceed their own MASN by more than the permitted margin. Twenty-six institutions forecast growth in award-holders of at least 2 per cent in 1997-98, compared with 1995 Budget assumptions of a reduction of 0.3 per cent. Many were colleges with significant ITT provision. Some 15 per cent of all institutions indicated that they would like increases in primary ITT targets, and some 25 per cent wanted increases in secondary ITT targets. Institutions will need to have contingency plans in place, in case their desire to increase student numbers is not supported.

42. Some institutions' are largely unaffected by the constraints on undergraduate award-holders, but most provided details of the effects of the period of consolidation and their response to it. For many, earlier growth plans have been frustrated and institutions are looking instead to expand in areas unaffected by the MASN policy, such as part-time, postgraduate, further education, nursing, overseas and other full-cost student numbers.

43. The policy of consolidation, coupled with continuing reductions in funding per student and the large cut in capital funding, was identified as the cause of a number of problems. Many institutions were looking to increase income-generating activities and to cut costs by freezing staff vacancies, introducing staff restructuring schemes and delaying investment in the infrastructure needed to support recent student expansion. A number of institutions mentioned the threat to the quality of academic and capital provision. Some argued that funding for equipment did not easily lend itself to PFI solutions. Constraints on student numbers were also frustrating aims to widen access, and limiting opportunities to develop new courses, particularly among institutions wishing to diversify out of ITT. The annual extension of the period of consolidation and uncertainty about the outcome of the Dearing review were frustrating institutions' attempts to take strategic views about the future expansion of student numbers.

44. Appendix B summarises student numbers in England by ASC and by mode (full-time/sandwich and part-time), with annual percentage changes in student numbers.

45. The student number forecasts reveal that between 1995-96 and 1999-2000:

• a. Full-time and sandwich home and EC student numbers are forecast to increase by 7.7 per cent; full-time and sandwich overseas student numbers are forecast to increase by 24 per cent.
• b. Part-time home and EC student numbers are forecast to increase by 14.1 per cent; part-time overseas student numbers are forecast to increase by 15.2 per cent.
• c. Changes in full-time and sandwich home and EC student numbers by ASC range from a reduction of 0.2 per cent in Pre-clinical Medicine (ASC 1.1) to an increase of 23.8 per cent in Other Non-ITT Education (ASC 11.2.2). The overall growth of 4.7 per cent for ITT hides a reduction of 11.2 per cent for primary ITT.
• d. The largest percentage increase in part-time home and EC student numbers occurs in Art, Design and Performing Arts (ASC 10).

Staff Numbers

46. Staff numbers, expressed as full-time equivalents as at 31 July each year, are forecast as follows:

	1996	1997	1998	1999	2000
Academic Staff	84,558	84,267	83,924	84,097	84,366
Annual % Change		-0.3%	-0.4%	0.2%	0.3%
Other Staff	113,081	112,152	111,263	110,932	110,621
Annual % Change		-0.8%	-0.8%	-0.3%	-0.3%
Total	197,639	196,419	195,187	195,028	194,987
Annual % Change		-0.6%	-0.6%	-0.1%	0.0%

These figures reveal that:

• a. Reductions in academic staff numbers in 1996-97 and 1997-98 are forecast to be largely reversed in the last two years of the planning period.
• b. Other staff numbers are forecast to fall each year and by 2.2 per cent over the whole period.
• c. Total FTE staff losses of over 2,600 are forecast to 1999-2000, the majority of them in 1996-97 and 1997-98.

48. However, a number of institutions predicted staff reductions without quantifying them, so these forecast reductions are conservative.

Estate Returns

Background

49. The estate return provides both aggregate data, which helps to give the Council a sector-wide view of the estate, and institutional data, for institutions interested in benchmarking. This section summarises the aggregate data, which may go beyond 1999-2000, the period used for the financial forecasts. Institutions interested in comparing their data with sector averages can have individual information, set out in the format illustrated in Appendix C, by contacting their Regional Estates Adviser.

Main Findings

50. The main findings can be broken down into seven broad headings:

• floorspace
• valuation
• maintenance
• space management
• problems
• major projects
• financing.

Floorspace

51. The net internal floorspace of the sector is approximately 9 million m2. Twenty-six institutions have over 100,000 m2 and seven have over 200,000 m2.

52. Institutions provided data on net internal and gross space, which gives an indication of the proportion of usable space. The ratio varied from 60 per cent to 85 per cent, with higher percentages more prevalent at the former PCFC sector institutions. Higher percentages suggest greater intensity of use.

53. A total of 212,000 bedspaces are provided by the sector. This represents one bedspace for every first year 18-21 year old undergraduate not living at home. A further 11,000 bedspaces are under construction. There is wide variation in levels of provision between individual institutions.

Valuation

54. The total insurance value for the sector is some £16 billion, split between £13 billion for non-residential and £3 billion for residential provision. This compares to the depreciated replacement cost (DRC) and book values of just over £5 billion and £6 billion respectively.

Maintenance

55. Institutions are allocating less year on year for maintenance, and particularly long-term maintenance. The planned spend drops noticeably from 1998-99. Chart 1 of Appendix D graphically illustrates the fall in non-residential maintenance provision.

Long-term Maintenance (£000)

	1994-95	1995-96	1996-97	1997-98	1998-99	1999-2000
Non-residential	121,835	142,574	131,964	132,548	101,529	101,634
Residential	19,600	26,395	29,435	31,943	29,442	29,250
Total	141,435	168,969	161,399	164,491	130,971	130,884

Routine Maintenance (£000)

	1994-95	1995-96	1996-97	1997-98	1998-99	1999-2000
Non-residential	137,795	133,991	120,060	122,208	123,032	125,282
Residential	32,517	34,700	34,107	35,103	34,137	35,151
Total	170,312	168,691	154,167	157,311	157,169	160,433

56. Maintenance was identified by institutions as the largest estate problem the sector faces, with over £250 million being budgeted each year for non-residential routine and long-term maintenance. Backlog maintenance affects 2.6 million m2, with an estimated cost to remedy of £498 million.

Running Costs

57. Estates running costs total £197 million for 1994-95, rising to £207 million and £214 million for 1995-96 and 1996-97 respectively:

£000	1994-95	1995-96	1996-97	1997-98	1998-99	1999-2000
Uniform Bus Rate	26,477	28,924	31,595	32,308	29,780	30,498
Rents paid	42,859	46,515	48,184	47,992	43,178	41,447
Gas	26,822	25,661	25,982	26,881	25,453	25,900
Electricity	77,402	80,830	82,580	85,143	80,042	81,486
Water	15,739	17,251	17,542	18,139	17,082	17,474
Sewerage	7,942	8,274	8,479	8,663	8,384	8,578
Total	197,241	207,455	214,362	219,126	203,919	205,382

Estate Records

58. Most institutions held full estate records on computer or in hard copy for floor areas, condition, tenure and occupation. All but 18 of the 140 respondents have all properties recorded on a property register.

Space Management

59. The returns showed that the majority of institutions take space management seriously and see it as a tool to ensure greater intensity of use. Institutions are aware of the management tools available to them, as Chart 2 in Appendix D indicates. Of the 140 institutions that replied:

• a. 125 use central booking of non-dedicated space and a further six are considering using it.
• b. 92 use central timetabling of non-dedicated space and a further 26 are considering using it.
• c. 44 use either a cash or notional space charging system and a further 44 are considering such a system. Space charging is not yet as established or popular as other methods of space management.
• d. 110 are undertaking reviews of space usage and a further 15 are considering undertaking them.
• e. 111 institutions are undertaking regular reallocation of space and a further 10 are considering it.
• f. 42 institutions provide no teaching for full-time students on Wednesday afternoons, the traditional sports afternoon.

60. The numbers of institutions considering particular space management opportunities can be summarised as follows:

Merger with other institutions (excluding London medical schools)	5 institutions
Improved space management	80 institutions
Extending the teaching day	66 institutions
Extending the teaching week	57 institutions
Extending the teaching year	58 institutions

Problems

61. In addition to backlog maintenance, Health and Safety compliance problems relate to 1.5 million m2, and site development constraints and external environment each affect 1.1 million m2.

62. Institutions wish to spend £579 million to address overall accommodation shortages and £366 million on residences.

63. Institutions also highlighted problems relating to security, energy management, security of tenure, sports facilities, and district heating systems.

Opportunities

64. Expansion is still seen as the major opportunity by institutions. Over 14 million m2 is earmarked for acquisition, and over 2 million m2 of development land for expansion. In contrast, the potential for reduction in sites is 400,000m2 and sale of land 500,000m2.

Major Projects

65. The returns asked institutions for their own proposals for projects. The main themes to emerge, beginning with the ones most frequently mentioned, were:

• residences
• new build
• remodelling/refurbishment
• sports facilities
• students' union/bars/recreational use
• refurbishment of science laboratories.
• acquisition/purchase of land and buildings
• libraries.

66. These major project proposals total £2.6 billion over the period 1994-95 to 1999-2000. However, within that spend, as shown in the financial forecasts, there is a declining profile towards the end of the period. The cost of programmes ranges up to over £100 million.

Major Project Proposals

Total per institution	No of institutions
£0-£5 million	49
£5-£15 million	32
£15-£30 million	27
£30-£50 million	25
£50-£70 million	6
£70-£90 million	2
over £90 million	4

Financing

67. Institutions were asked to specify sources of future financing. Of the £2.9 billion expenditure outlined in the returns, the sources, shown in Chart 3 of Appendix D, were as follows.

Source	£ million
HEFCE formula grant	178.7
Reserves	733.4
Other public funding grant	155.8
Loans/mortgages/finance leases	789.4
Disposal proceeds	205.5
Appeals	262.4
PFI	130.1
Lottery/Millennium funding	117.0
Other	340.6
Total	2,912.9

Conclusion

68. The returns have provided valuable information about the sector's estate. Institutions are under increasing pressure to make more efficient use of their estate and the returns demonstrate that they are responding positively to the task.

Appendices

The appendices to this publication are not available in the electronic version

Appendix A

Strategic Plans 1996: Forecast Student Numbers in England

Table 1: Comparison of Award-Holders with MASN and 1995 PES Assumptions

Table 2: Forecast Student Award-holders at HEIs

Table 3: Comparisons of Forecasts UK and EC Student Numbers with Government 1995 PES Projections

Appendix B

Full-time and Sandwich Student Number Forecasts
Part-time Student Number Forecasts

Appendix C

Institutional Comparisons Sheet on Estate Return

Appendix D

Chart 1: Maintenance Budgets for the Higher Education Sector 1994-95 to 1999-2000
Chart 2: Space Management
Chart 3: Financing the Future Estates Projects