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The Russell Group of Universities SUBMISSION of EVIDENCE FOR The Russell Group of Universities 1 Northumberland Avenue Trafalgar Square, London, UK WC2N 5BW T: +44 (0)20 7872 5802 www.russellgroup.ac.uk SUBMISSION OF EVIDENCE FOR THE HOUSE OF COMMONS SCIENCE AND TECHNOLOGY SELECT COMMITTEE INQUIRY: THE IMPACT OF GOVERNMENT SPENDING CUTS ON SCIENCE AND SCIENTIFIC RESEARCH Introduction The Russell Group is an association of 20 major UK research-intensive universities. Collectively Russell Group universities represent 12% of the higher education sector by number and account for a significant proportion of the UK’s research base, employing 40% of academic staff and educating 56% of PhD students. Russell Group universities are successful in winning the majority of the competitively available funding for research from a wide range of sources. Approximately two thirds of research funding going into the university sector is won by Russell Group institutions including 63% of research grants and contracts from UK industry and commerce.1 The UK’s leading universities are one of the country’s success stories. The UK is second only to the US in terms of research productivity and punches well above its weight although the UK public and private expenditure on R&D still lags behind many other G7 nations. Leading research-intensive universities provide a concentration of talent, state-of-the-art facilities teaching and research, and offer a stimulating, competitive and progressive environment to enable them to: Generate a significant volume of excellent research Provide first-class research-informed teaching at undergraduate level Deliver high-quality postgraduate training, enabling PhD students to work together alongside researchers of an internationally defined calibre Act as a focal point for clusters of knowledge intensive business activity Stimulate inward investment Offer international leadership and access to international research networks Promote and facilitate international research Russell Group universities are international institutions, whose research and teaching has a major impact on the UK economy. Russell Group universities2: Have an estimated total economic output of £25.3billion per annum Are responsible for supporting 237,000 jobs UK-wide Are a successful UK export industry, with overseas earnings of £3billion per annum Maintaining an environment within the UK which is conducive to science, research and innovation is essential not only for the success of the economy but also to enabling the UK’s world-class universities to compete for academic talent, the brightest students and R&D investment from the private sector, charitable and other sources. This is recognised in Government’s framework for higher education, “Higher Ambitions” which states “A key asset in attracting researchers and maintaining the critical mass of our research activity is our clear 1 2007-08 HESA data show that 68% of Research Council funding going into the HE sector was won by Russell Group universities, with Russell Group universities also securing 62% of Funding Council investment. 2 Data derived from the Universities UK report “The Economic Impact of HEIs” public commitment to science and research. Stable government funding and support provides an essential foundation for science and research base to plan and grow”. The Russell Group agrees, and welcomes the Government’s commitment in “Higher Ambitions” to the dual support system for research and to the public funding of teaching via independent Funding Councils. These are fundamental components of the UK HE funding framework and are necessary to enable universities (and other funders and collaborators) to plan, invest, and develop sustainable partnerships over appropriate timescales. They are also critical to maintaining UK and international stakeholder confidence in the HE sector. Whilst this inquiry focuses on the impact of government spending cuts to science, engineering and technology, the Russell Group would like to emphasise that the cuts announced by the government to universities, science and research budgets will inevitably have a significant impact on teaching and research across the academic spectrum. The points raised below about the impact of these funding cuts and the importance of concentrating limited public funds on the very best UK research and teaching in order to maintain the UK’s world-class research base are as applicable to the arts, humanities and social sciences as they are to STEM subjects. 1. The process for deciding where to make cuts in SET spending 1.1 We recognise that the Government has made major increases in investment in higher education and research since 1997. This increased provision has included substantial uplifts to the STEM-focused Research Councils, preferential weighting of STEM subjects in the Research Assessment Exercise (RAE), and an additional £75M in funding from HEFCE over the years 2007-08 to 2009-10 to support the provision of very high cost laboratory subjects (chemistry, physics, chemical engineering and mineral, metallurgy and materials engineering). This additional funding has helped Russell Group universities to maintain high quality research and research-led teaching in these critically important subjects. 1.2 The cuts in public spending for HE and research announced in October 2008, in the 2009 budget, and in the pre-budget report, and the annual grant letter to HEFCE in December 2009 amount to some £915M. In December the STFC also announced cuts of around £28M per annum to its programmes in order to balance its books. These cuts, which follow cuts to some departmental R&D budgets and other reductions such as the loss of funding for the Overseas Research Students Awards Scheme in England and Wales, are cumulatively eroding the sustainability of the UK’s leading universities. This is damaging their ability to compete for resources and talent on the world stage and will in time undermine UK competitiveness. Public finances are likely to be squeezed substantially after the general election and the outlook for universities is grim. 1.3 It is worth emphasising that whilst the UK is cutting its public investment in universities, many competitor countries are substantially increasing public investment in HE and research and concentrating this funding on centres of excellence. Countries such as the US and France are investing in higher education as a means to prompt a swift, but sustainable, recovery from recession, recognising that research underpins innovation and long-term economic growth. Other countries, such as China, Korea, Taiwan, Canada, Denmark, and Germany, are investing selectively to create or strengthen world-class universities with the aim of challenging the existing world leaders for academic talent, students and resources, ultimately boosting their nation’s economic productivity. 1.4 In this climate, where resources are under pressure and international competition is intensifying, public investment must be prioritised on strengthening research centres with world-class capability. “Higher Ambitions” states that this approach is necessary to protect the UK’s international reputation for research excellence and to enable the UK to compete successfully to attract the world’s best researchers, brightest students, and inward R&D investment. The framework emphasises the need to support and protect the UK’s “strongest, world-leading centres of research” and that this should mean more concentration of research and resources. 1.5 The Russell Group supports this view and believes that it is important that SET policy and funding models reflect this approach. This includes the REF assessment methodology, as well as in the methods subsequently used to allocate QR funding in England, Scotland, Wales and Northern Ireland. 1.6 We believe that discussions about strategic priorities for public investment in higher education, science and research should continue to be based on solid evidence and analysis, and discussed in partnership between government, research funders, business, and universities via Funding Council boards, Research Councils’ governing bodies, and national entities such as the Funders Forum and the Council for Science and Technology. This model has, on the whole, worked well over the last 10 years. If further cuts in HE and research budgets cannot be avoided, robust strategic thinking and re-prioritisation must be applied across the UK research base. Early dialogue and debate will help universities and other stakeholders to manage the risks more effectively and to assess impacts, revise strategies, and re-prioritise objectives. 2. Evidence on the feasibility or effectiveness of estimating the economic impact of research both from a historical perspective (for QR funding) and looking to the future (for Research Councils grants) 2.1 Government support for basic research is an essential part of the UK innovation system. Public investment in research generates a huge range of beneficial outputs and impacts which underpin and contribute to the UK’s long-term economic growth, well-being and quality of life. Government also has a vital role in creating a policy and regulatory environment and providing signals and incentives to enable excellent research and innovation to flourish. The introduction of measures to evaluate economic impact more systematically and to use this information to inform the distribution of public funding is a significant policy development in this context. 2.2 As successful competitors for a substantial volume of public funding, Russell Group universities share
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