Hefce Annual meeting
Download
Report
Transcript Hefce Annual meeting
Alan Langlands
26 November 2010
Review of the year
Nine in ten of the public think it is important
for the Government to invest in universities
___________________________________________________________________________________________________________________
Q. In your opinion, how important is it, if at all, for the government to
invest in UK universities?
not at all important
don’t know
not very important
very important
fairly important
Net
difference
%
Important
90
Not important
8
Net importance
+82
Base: 2,003 British adults aged 15+, 30 July - 5 August, 2010
Source: Ipsos MORI
the enterprise university
£59 billion economic impact
Widening participation
____________________________________________________________________________________________________________________
Supporting strategic subjects
____________________________________________________________________________________________________________________
Global leadership in research
__________________________________________________________________________________________________________________
Wider contribution of higher education
________________________________________________________________________
Development of our
professions…
…cultural and social impact
…contribution
to sustainable
development
Financial health
___________________________________________________________________________________________________________________
sector has strong cash balances and healthy
levels of reserve
income up by average 7.4% pa over past decade
to reach a total of £21bn in 2008-09
– of which student fee income from Home/EU
students was less than 9%
average operating surplus of just 1.3% of total
income over the last decade
total support to institutions at higher risk less
then £4M per annum – less than 0.1% of HEFCE
funding
Challenges for the future
Future challenges
___________________________________________________________________________________________________________________
£2.9bn (40%) reduction from £7.1bn Higher Education resource budget
by 2014-15 plus reductions in other HEFCE funding lines
other cuts in public spending that will impact on higher education
a tough deal for students, graduates and their families
– higher fees up to £9k
– graduates pay less each month but pay for much longer
institutional response – need for new and innovative business models
re-work of the 1992 Act
Transition issues
________________________________________________________________________________________________________________
resource allocation in 2011-12
teaching funding policy from 2012-13
access to higher education
quality and public information
research and HEIF
institutional and sector sustainability
Changing for the future
_______________________________________________________________________________________________________________________
system change
- a new paradigm for higher education funding
legislative change
- increasing the fee cap; new interest rate; a rework of the 1992 Act
organisational change
- the development of ‘Student Finance’ and (possibly) The Higher
Education Council
An exacting timetable
_______________________________________________________________________________________________________________________
effective management of 2010-11 and 11-12
White Paper on future strategy of HE by March 2011
legislation introduced for reforms by May 2012
new funding settlement by August 2012
new constitutional arrangements by August 2013
Key risks
_______________________________________________________________________________________________________________________
political/ Parliamentary delays
public reaction
universities fail to respond with new business models
higher education loses credibility in the capital markets
loss of reputation/ international competitiveness (learning and
teaching and research)
loss of financial flexibility
administrative failure
Testing times for Governors and senior managers
Orderly transition
_______________________________________________________________________________________________________________________
not losing sight of our core purpose
addressing and mitigating risks
discharge our funding and regulatory responsibilities in a fair and
proportionate way
support institutions through the change process
tackle the unintended consequences of the new ‘market’ model
synchronisation of HEFCE funding cuts and the implementation of the
new funding settlement with least damage to students, education,
science and research
provide people with clear and unambiguous information
Interests of students are paramount
_______________________________________________________________________________________________________________________
“If you value the world simply for what
you can get out of it, be assured that the
world will in turn estimate your value by
what it can get out of you……”
(Arthur Hadley, President of Yale University from
1899 to 1921)
“If we value our students simply for what
we can get out of them or what they
might earn in the future, be assured that
they will in turn estimate our value by
what they can get out of us…..”
Thank you for listening
[email protected]