May 2006/15
Special funding
Guidance

Proposals can be made at any time

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Strategic Development Fund

Updated guidance

This guidance on our Strategic Development Fund (SDF) supersedes HEFCE 2003/28 and gives changes we have made to the application, approval and monitoring processes. A key aim of the fund remains to facilitate strategic developments that will benefit the sector as a whole. Proposals can be made at any time, and these will be reviewed by us at regular intervals throughout the year.

View updated guidance (July 2007)

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To:	Heads of HEFCE-funded higher education institutions
Of interest to those responsible for:	Planning, Finance, Senior management
Reference:	2006/15
Publication date:	May 2006
Enquiries to:	HEFCE regional consultant or higher education adviser

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Executive summary (read on-line)

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Executive summary

Purpose

1. This document provides details of our Strategic Development Fund (SDF) and the revised processes for submitting, assessing and monitoring proposals for funding.

Key points

2. We have revised guidance for the SDF now in order to align the fund with our new strategic plan ('HEFCE strategic plan 2006-11', HEFCE 2006/13).

3. The purpose of the SDF is to help us achieve our strategic aims and objectives, including the aim to sustain a high-quality higher education (HE) sector. Its overarching priority, reflected in the criteria for the fund, is to facilitate constructive development and change in the HE sector at a strategic level. Supporting institutions to focus on achieving excellence in what they do best, and to collaborate based on their strengths, are also important features of the fund. Its intention is to assist institutions in developing and implementing strategies that provide for their long-term sustainability. In addition, from time to time we will identify some specific priorities for the SDF, which will be linked to our strategic plan.

4. We will consider supporting projects of any scale, but we expect to provide the majority of the SDF to a small number of large scale projects. An important consideration in allocating SDF funding will be the extent to which institutions seeking SDF support are able to secure funds from other sources: we particularly welcome multi-funder proposals. We wish to see proposals that are based on full economic cost, are affordable and sustainable, and the mix of investment is appropriate given fit with the different investors’ strategic priorities. For our part, we have moved towards a risk-sharing and investment-based approach in the SDF. In line with this approach, and given that there is a limited budget available, we will normally provide our support through a mix of repayable grant and standard discretionary grant.

5. We have revised the methods of submitting, assessing and monitoring proposals to the SDF in order to address issues of risk and sustainability more effectively.

6. Up to date information about the fund is maintained under the SDF section on our web-site.

Action required

7. There is no deadline for submitting proposals to the SDF. We will consider proposals at any time, and fit them into our ongoing approval process throughout the year. Proposals should be discussed with the institution’s HEFCE regional consultant or higher education adviser in the first instance. Proposals should then be submitted by e-mail to the HEFCE regional team (or to the relevant policy officer if the proposal is for a specific priority programme as advised on the web-site).