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Review of Coherent Provision and Sustainability COHERENCE AND SUSTAINABILITY: A REVIEW OF TERTIARY EDUCATION AND RESEARCH 29 JUNE 2021 SCOTTISH FUNDING COUNCIL TABLE OF CONTENTS FOREWORD BY MIKE CANTLAY, CHAIR OF SFC 6 REVIEW SUMMARY AND KEY RECOMMENDATIONS 9 Key recommendations for system change 10 Surviving and thriving with commitment and impact 11 Towards a responsive, coherent education and skills system 12 Protecting and promoting students’ interests 13 Sustaining research and enhancing knowledge exchange 14 International Education 15 Sustainability and collaboration 15 Frameworks for the future 16 Conclusion: System leadership for the future 17 SETTING THE SCENE 19 Our starting principles 21 What have we learned from the pandemic? 28 Dealing with the emergency years 30 TOWARDS A RESPONSIVE, COHERENT EDUCATION AND SKILLS 33 SYSTEM THAT DRIVES ECONOMIC AND SOCIAL RENEWAL Drivers for change 33 How to effect system change 36 Developing a refreshed approach to skills alignment and tertiary 37 provision planning Tertiary Provision Pathfinders 39 Scotland’s Health and Social Care workforce 41 Building long-term relationships with employers and industry 42 Learning throughout life: qualifications and targets 44 Recognising learning throughout life in qualifications 44 Targets and investment for lifelong learning 45 Lifelong opportunities through Community Learning and Development 47 Broad economic and social recovery themes in a responsive 47 tertiary system The importance of place 48 2 COHERENCE AND SUSTAINABILITY: A REVIEW OF TERTIARY EDUCATION AND RESEARCH 3 TABLE OF CONTENTS SCOTTISH FUNDING COUNCIL PROTECTING AND PROMOTING STUDENTS’ INTERESTS 55 SUSTAINABILITY AND COLLABORATION 113 The lived experience of students 55 Income and levels of public investment 114 Schools and tertiary education – supporting transitions, 61 Trends in investment 115 overcoming disadvantage in the Learner Journey Replacing EU Structural and Investment Funds 116 Fair access and transitions: student-focused, with many pathways 65 Understanding sustainability 118 Completing qualifications and supporting next steps 68 Our current assessment of the financial health of colleges 123 Curriculum development for the future 68 Our current assessment of the financial health of universities 125 Securing quality in learning and teaching for students 69 Collaboration for sustainability and impact 130 Online learning and digital infrastructure 72 Multi-college regions 131 Student Support 76 Sustainability 131 SUSTAINING RESEARCH AND ENHANCING KNOWLEDGE EXCHANGE 79 AMBITION AND FRAMEWORKS FOR THE FUTURE 133 The UK context 80 The Scottish Government’s long-term intent 133 Sustaining investment 80 Developing a new National Impact Framework 135 The distribution of investment 81 SFC’s frameworks and activities 136 Research sustainability 82 Impact, quality and accountability 138 Impact and accountability 83 Outcome Agreements 140 Research talent and culture 84 Revised Outcome Agreements 142 A Missions approach to research, knowledge exchange and 85 Responding to individual performance and achievement of innovation 143 outcomes Collaboration through research pooling 89 Analytics and Insight 144 The context for Knowledge Exchange 92 SFC’s Investment Framework 145 Powering up our institutions’ contributions through knowledge 96 exchange Core funding for teaching 146 Entrepreneurial activity 99 Improved provision planning 146 INTERNATIONAL 103 Fair and transparent distribution of funds 146 Benefits from international activities 104 College Teaching Funding 147 Understanding global trends 105 University Teaching Funding 149 Erasmus and student mobility 106 Recognising distinct institutional missions 150 Horizon Europe 107 Testing integrated tertiary approaches 150 Research and exchange programmes 107 Policy incentives and premiums 151 Colleges’ international ambitions 108 Fund Recovery 153 Branding and marketing 108 Transformation funding 153 Inward Investment and Export 109 CONCLUSION: SYSTEM LEADERSHIP FOR THE FUTURE 155 Transnational education 110 Enhancing collaborative leadership 155 Alumni and Networks 111 Developing SFC for the future 157 4 COHERENCE AND SUSTAINABILITY: A REVIEW OF TERTIARY EDUCATION AND RESEARCH 5 FOREWORD SCOTTISH FUNDING COUNCIL representative bodies, academics; and by reference groups involving a wide range of interests. The process FOREWORD has been overseen by a Programme Board involving external experts, and the Review process has produced by Dr Mike Cantlay, Chair of SFC material in the phases leading up to this final report. I am immensely grateful to everyone who has helped We are living through unprecedented shape this Review Report and our times. Colleges and universities were recommendations. already facing financial sustainability pressures, but COVID-19 sent shock We have, by necessity, a complex waves through the sector here and and diverse system and no one-off, across the globe. We simply do not single solution will provide all the know what changes it will lead to answers. Instead this Review aims to internationally in terms of research help design a smart environment that priorities and collaborations, or student can respond to the partly unknown travel and study patterns. There are challenges and uncertainties that will potentially major shifts on the horizon research system. Scotland’s colleges and continue to face tertiary education. in the UK-wide policy and funding universities are among the best in the It sets out how we can continue to environment that may affect cross- world and they are key to our economic develop a coherent tertiary education, border student issues, for example, and social renewal, a green recovery, skills and research system that is around admissions, fee levels and and our ability to lead healthy lives and responsive to learners, and the lifelong learning entitlements, alongside to flourish. economic, cultural and social needs the evolving research and innovation of Scotland - a system that respects Against this backdrop of challenge landscape. In addition, the Scottish the autonomy and subsidiarity of and opportunity, I was delighted Government plans to pursue potential individual institutions, while working that Scottish Government Ministers changes in the constitutional relationship collectively to remain sustainable, commissioned the Scottish Funding between Scotland and the rest of the UK, plan together and deliver good Council to review how best we can and with the European Union. outcomes. Ultimately, we want to fulfil our mission of securing coherent ensure public investment produces This means we are all operating within tertiary provision and excellent genuine public value. We all have role a context of unparalleled uncertainty. research in these changing times. to play in achieving this. We pay tribute in this report to the The Review has been informed continued flexibility, resilience and civic by the excellent Cumberford- We look forward to working responsibility demonstrated by students Little and Muscatelli Reports; over constructively and collaboratively with and staff right across the sector. And 100 respondents to our call for the Scottish Government, colleges, we recognise the diversity, depth and evidence; widespread discussions universities and wider stakeholders in strength of our tertiary education and with students, employers, unions, delivering next steps for the future. PHOTO: MORAY COLLEGE 6 COHERENCE AND SUSTAINABILITY: A REVIEW OF TERTIARY EDUCATION AND RESEARCH 7 SCOTTISH FUNDING COUNCIL REVIEW SUMMARY AND KEY RECOMMENDATIONS The Scottish Funding Council (SFC) is the national, strategic body that invests £1.9 billion in tertiary education, research and knowledge exchange, through colleges and universities. In June 2020, Scottish Government Ministers asked us to review how we could best fulfil our mission of securing coherent, good quality, sustainable tertiary education and research in these changing times. This Review has been conducted over three phases, and in an inclusive, evidence-based and collaborative way that gathered views through an open call for evidence, and short-life advisory and reference groups. It stands on the shoulders of Scottish sector expert reports (such as the Cumberford-Little and Muscatelli Reports) and has benefited immensely from the generous insights and guidance of countless participants from across and beyond the sector who were also managing acute pandemic situations and many other priorities. We are grateful to everyone involved. This Review is not intended to be an endpoint. There is no one simple answer to the commission, only hard choices in uncertain times. We have outlined the challenges and complexities we face collectively and the significant strengths and necessary diversity of the institutions, subjects, qualifications and research evident across Scotland. Given the importance of subsidiarity in decision-making and the autonomy and agency of institutions and other actors within the tertiary and research system, we highlight the importance of deeper collaboration and partnerships to effect change. We aim to balance ambition and pragmatism, pandemic pivots and long-term adaptation. Our recommendations, therefore, build logically from years of policy direction and investments that are particular to tertiary education and research in Scotland, to enable the system to evolve to be even more coherent, responsive and effective for the years ahead, PHOTO: ROBERT GORDON UNIVERSITY 9 REVIEW SUMMARY AND KEY RECOMMENDATIONS SCOTTISH FUNDING COUNCIL for current and future students,
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