Memorandum submitted by Paul Double, City
Remembrancer, Guildhall
I noted with interest the Committee's announcement,
shortly before the House prorogued, about plans for inquiries
into Higher Education. The City of London has a growing interest
in this field in the context of maintaining the City's position
as a leading world financial and business centre. The City recognises
the fact that universities and higher education institutions are
a key pillar of the knowledge economy and provide one of the dynamics
for innovation through research and development. As with the City,
the best universities compete globally. In this context, I thought
it might be useful to set out some background to the City's interests
in this area. I appreciate that this note does not necessarily
follow the question and answer format contained in the Committee's
call for evidence but I hope that it may nonetheless be helpful
as background.
Factors contributing to London's leading position
as a financial centre include a reputation for openness, with
easy access to global markets and an environment attractive to
overseas firms. The provision of leading edge education and training
services in the UK has been central to maintaining this reputation
and is key to the development of professional competences that
will sustain London's position in the future. UK education and
training services are internationally recognised in opening up
career opportunities in financial and professional services in
London and the UK.
Recent research published by the City of London
Corporation[67]
has shown that the financial and related business services (FRBS)
sector is increasingly leaning towards recruitment of foreign
graduates. This includes both overseas students studying in the
UK's higher education institutions (HEIs) and students from non-UK
HEIs. Language skills are an obvious consideration and are seen
as an advantage in an international business City, but overseas
graduates are also seen as attractive for their diverse business
experience. It is estimated that over half the workforce in the
financial and related business services sector employed in the
City of London come from outside the UK and the opportunities
available in the City are attractive internationally for those
seeking to learn and to gain experience in this growing sector.
Those that remain in the City are an important driver of its economic
success.
Research commissioned by the City of London
Corporation has shown that the availability of skilled personnel
is ranked as the single most important factor in maintaining the
competitiveness of the City.[68]
London has also been cited separately as the best place in the
world to go for valuable educational qualifications.[69]
The growing educational export market already earns huge benefits
for the UK, both economically and culturally. There is increasing
overseas interest in obtaining high quality, internationally portable,
UK qualifications. There is a strong push already by UK professional
bodies, business schools and training organisations to provide,
or facilitate, the necessary training to deliver professional
qualifications in a range of overseas markets. Other countries
including the US, Canada and Australia are already active in promoting
their national commercial interests in this sphere. There are
arguments to suggest that there is an opportunity here for the
UK to do more and to succeed better.
In recognition of this, the present Lord Mayor,
Alderman John Stuttard, has chosen skills as the central theme
for his mayoralty during 2006-07, focusing particularly on the
City as the centre of excellence for professional education, training
and qualifications. This initiative—City of London—City
of Learning—intends to raise awareness of the quality
and portability of UK qualifications through promotional events
during the Lord Mayor's visits overseas and when he receives senior
overseas visitors at Mansion House during the year. An integral
element of the initiative is the development of an internet-based
database linked to websites of key professional bodies, universities
and training providers. This will be accessible through a range
of sites (UK Government and City institutions), not least through
UK missions and British Council offices overseas.
Alongside the Lord Mayor's initiative, the City
Corporation has sought to reflect this growing interest in skills
and training through its annual research programme and, in addition
to those reports already mentioned, included a specific section
on the competitive position of London's higher education institutions
in its flagship annual report.[70]
Section 7.2 of the report seems particularly relevant to the inquiry
although section 7.1 on London's skills needs may also be of interest
to the Committee.
The research found some evidence that the competitive
environment faced by UK universities is starting to toughen as
a consequence of a falling population in the prime student age
group, the possible freeing up of the tuition fee environment,
the possibility that some high profile institutions will "go
private", and the impact of what some commentators have called
the "de-localisation" of university functions on the
back of web related developments.
As you will know, there is no single measure
that can effectively capture the competitive abilities of a university
or higher education institution. There are however a range of
league tables from a variety of sources that provide insights
into the strengths (and weaknesses) of individual institutions.
Oxford Economic Forecasting found, in its research, that the UK
scores well on the quality of its universities. While the United
States dominates the league tables in terms of measures of attractiveness
to foreign students, quality of research and levels of income,
the UK tends to occupy second place, ahead of the other large
developed economies. This is explored in more detail in the report.
December 2006
67 Graduate Skills and Recruitment in the City,
Alpha Generation Financial Training Limited et al., published
by the City of London Corporation, September 2006. Back
68
The Competitive Position of London as a Global Financial Centre,
Z/Yen Limited, published by the City of London Corporation, November
2005. Back
69
Anholt-GMI City Brands Index, http://www.citybrandsindex.com/,
December 2005. Back
70
London's Place in the UK Economy, 2006-07, Oxford Economic
Forecasting, published by the City of London Corporation, November
2006. This is an annual report which seeks to highlight the importance
of London's wealth and tax generating capabilities in relation
to the rest of the UK. The report gives a clear message to policy
makers that London's continued growth and high productivity are
critical for the future health of the nation. Back
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