February 2006/04
Core funding/operations
Consultation

Comments should be sent to HEFCE by Friday 28 April

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Capital investment framework

Consultation on a new approach

This document sets out proposals for a new approach to capital investment for higher education institutions. These proposals are in advance of the 2007 Comprehensive Spending Review and are dependent on its outcome.

Analysis of responses and next steps

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To:	Heads of HEFCE-funded higher education institutions Heads of universities in Northern Ireland
Of interest to those responsible for:	Governance, Management, Finance, Estates, IT
Reference:	2006/04
Publication date:	February 2006
Enquiries to:	Ian Lewis tel 0117 931 7336 e-mail i.lewis@hefce.ac.uk

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Executive summary (read on-line)

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Executive summary

Purpose

1.    This document sets out proposals for a new approach to capital investment in higher education. These proposals are in advance of the 2007 Comprehensive Spending Review and are dependent on its outcome.

Key points

2.    Higher education institutions (HEIs) need to plan strategically and invest appropriately if their physical infrastructure is to remain fit for purpose in the long term.

3.    In many cases this will require them to take a longer-term view of capital investment and funding and to develop a more strategic approach.

4.    Such investment by institutions should be seen as contributing to achieving their long-term academic objectives; as such, capital investment should be integral to their strategic and operational systems.

5.    Where HEIs are able to demonstrate that capital investment plans are integrated with their strategic and operational planning, and that investment is being made in accordance with those plans in order to sustain their physical infrastructure, we would consider providing capital funding more flexibly, monitored within the 'single conversation' between HEFCE and institutions.

Action required

6.    Comments on the proposed new arrangements should be e-mailed to capital@hefce.ac.uk by Friday 28 April 2006.