Higher Education
14. Most
aspects of higher education policy development are now devolved,
and each of the four nations has distinctive approaches and priorities
for its higher education sector. Nevertheless, the benefits to
all of maintaining consistently high standards in higher education
institutions throughout the UK and the existence of other common
interests such as shared markets for staff and student recruitment
mean that in practice there continues to be a high level of interdependency
between the nations. The higher education sector in England is
much larger than that in Wales, and whilst Wales has the powers
to develop its own policies, it remains in a number of significant
respects subject to the consequences of policy changes across
the border in England. (Paragraph 53)
15. Student flows
from England to Wales are very significant for Welsh higher education
institutions and for the Welsh economy. Although it appears that
increasing numbers of Welsh-domiciled students are choosing to
study in Wales, within the UK Wales has the highest proportion
of full-time higher education students coming from outside the
country. Policy decisions made in England which alter the pattern
of student flows, whether as an intended or unintended consequence,
could have a major impact on Wales. Similarly, decisions of the
Welsh Assembly Government need to take account of the reality
of choices made by would-be students and the health of Welsh higher
education institutions. (Paragraph 60)
16. Differences in
spending priorities between the governments in Wales and in England
have led to a funding gap, estimated on 2005/06 figures to be
£61 million, between the amount which the higher education
sector in Wales receives compared to what it would receive if
it were funded on the same basis as the higher education sector
in England. Witnesses told us that if this funding disparity
were to continue, the higher education sector in Wales would become
unable to compete effectively with institutions in the UK and
other European Union nations and that this would limit its ability
to contribute to a growing economy in Wales. (Paragraph 65)
17. The introduction
of a matched fundraising scheme for universities in England, and
the absence of any equivalent scheme in Wales, will inevitably
increase the funding disparity between England and Wales and the
advantages of such a strategy should be explored by the Welsh
Assembly Government. (Paragraph 73)
18. Witnesses expressed
concerns about the decision to merge the responsibilities of the
Medical Research Council, which has a UK-wide remit, with the
National Institute for Health Research, whose remit covers England
only. We recommend that the newly formed UK Office for the Strategic
Coordination of Health Research implements procedures to ensure
that the views and priorities of health researchers in Wales are
fully taken into account when considering its strategic approach
to clinical research across the UK. (Paragraph 75)
19. We have been assured
that the necessary arrangements are in place to enable the funding
councils of Wales and England to support cross-border collaborative
projects. We are supportive of such projects and believe that
they could help foster better cross-border cooperation and as
a consequence, potentially improved research funding in Wales.
We recommend that the Department for Innovation, Universities
and Skills and the Welsh Assembly Government monitor this issue
so as to ensure that joint funding is provided to appropriate
projects. (Paragraph 79)
20. It is clear that
the higher education sector in Wales receives a smaller share
of UK research funding than would be expected from its relative
size. Witnesses have suggested various explanations for this,
including the possibility that the lower level of higher education
infrastructure investment in Wales is compromising the quality
of research bids; the fact that there is a greater proportion
of smaller institutions in Wales; the possibility that Welsh interests
are inadequately represented when selecting successful research
bids; and the possibility that current systems for awarding funding
favour established institutions with a proven track record rather
than ones with future potential. (Paragraph 86)
21. Research investment
brings significant economic benefits to the surrounding localities.
Higher education institutions in Wales will be disadvantaged
if the funding gap continues to grow, which will make it increasingly
difficult for them to compete on an equal basis with English institutions
for research funding, with the prospect of a downward spiral developing.
This would have a significant and negative impact on the economy
of Wales. We believe that the UK-wide distribution of research
funding by the Department for Innovation, Universities and Skills
should take account of the relative needs of different parts of
the UK for such economic investment. However, it must be acknowledged
that it will be harder to attract research funding if the funding
gap referred to in paragraph 65 continues. We recommend that
the Department prepares and publishes a report on the varying
levels of research investment across the different nations and
regions of the UK, together with an explanation of the variation
and steps which could be taken to achieve a more equitable distribution,
giving consideration to each of the factors listed in paragraph
86 above.
(Paragraph 87)
22. We believe that
research councils should not just follow excellence, but must
also foster it. Higher education funding should not be based
on a winner takes all model. We support the suggestion of Universities
UK that, given the economic impact of research spending, funds
should be made available at a UK level to support the development
of research capacity in economically deprived areas of the four
nations. We recommend that the Department for Innovation, Universities
and Skills makes available a specific allocation of research funds
to develop the research capacity of higher education institutions
outside the established elite to enable them to gain a track record
of success and so be able to compete more effectively for research
funds from other sources. (Paragraph 88)
23. Whilst there are
undoubtedly a number of communications mechanisms in place between
the Department for Innovation, Universities and Skills and the
Welsh Assembly Government, it is clear that these have not been
sufficiently effective. We fear that the liaison between the
two departments is of a formal nature only and steps need to be
taken to create a relationship which develops into a true partnership.
We heard evidence of instances where UK policy had been developed
with little attention given to Welsh issues, and of policy developed
for England without consideration of the impact it would have
on Wales and vice versa. We look to the Wales Office to improve
communications and ensure that they are fit for purpose. There
should also be better liaison between the Wales Office, the Welsh
Assembly Government and HEFCW. (Paragraph 93)
24. The Department
for Innovation, Universities and Skills is responsible for science
policy throughout the UK and must ensure that all of the four
nations benefit from its science investments. The Welsh Assembly
Government has defined its own science priorities for Wales but
has provided no specific additional funding to pursue these aims.
There is a clear risk that neither body will give sufficient
priority to science investment in Wales, despite the obvious benefits
to the economy there. We recommend that the Department for Innovation,
Universities and Skills explores with the Welsh Assembly Government
the potential for a joint science investment fund or a joint strategic
science site in Wales. (Paragraph 96)
25. In order to encourage
better joint working, we suggest a greater use of secondments
between the two government departments as well as between funding
bodies on both sides of the border. (Paragraph 104)
26. Some of the responsibilities
of the Department for Innovation, Universities and Skills are
UK-wide and others relate only to England. Our evidence suggests
that this situation has given rise to confusion, both within and
outside the Department. Welsh interests are not being adequately
taken into account when formulating UK policy, and UK policies
are overly based on English interests. We recommend that the
Department for Innovation, Universities and Skills establishes
processes to ensure that the territorial extent of any policy
is clearly identified and communicated by officials before any
developments to it are proposed and that this should be done in
consultation with the Wales Office and the Welsh Assembly Government.
(Paragraph 105)
27. With regard to
the development of higher education policy, we were told that
there are a number of opportunities for officials of all administrations
to meet and share information, but there appears to be no framework
to ensure that future strategy is developed with due regard to
the interdependencies of the higher education sectors of the four
nations. We saw no evidence of any clear process for considering
the implications for the devolved administrations before decisions
about policies for England were made. Because of its relative
size, changes to the higher education sector in England will inevitably
have an impact throughout the rest of the UK. Policy decisions
must be taken in the knowledge of the likely consequences on both
sides of the border. We recommend that the Department ensures
that the devolved administrations are fully consulted before any
further decisions are made with regard to future higher education
policy in England, and that any future reviews routinely include
this type of consultation as a matter of course. We look to the
Wales Office to ensure that this happens. (Paragraph 106)
28. Occasional and
ad hoc meetings serve a useful purpose in exchanging information
about current issues, but there is also a need to establish better
protocols and relationships to ensure that the Government's policymaking
process routinely considers devolved interests at an early stage.
We recommend that until any alternative structure is put in place,
the coordination of higher education policy should be a top priority
for the Joint Ministerial Committee, and that information about
its discussions is made publicly available. (Paragraph 107)
29. Throughout all
the strands of our cross-border inquiry, our evidence has suggested
that the decision-making process on each side of the border needs
to be more coordinated, more coherent and more transparent. Democratic
devolution means that decisions should be taken in England and
Wales in the best interests of the local population. This does
not mean, however, that governments on either side of the border
should close their eyes to the consequences of their decisions
on the population of the UK as a whole, particularly those living
in close proximity to the border itself. We have found clear
evidence that a better interface between government departments
and the Welsh Assembly Government would be to the benefit of students
and education staff both in Wales and in England. (Paragraph 108)
30. The Welsh Assembly
Government has chosen to invest less in higher education than
the Department for Innovation, Universities and Skills has in
England and the consequences of this are increasingly evident
in competition for students, the strength of the institutions
and capacity for research. We note the Minister's willingness
to address these issues, many of them identified by Professor
Merfyn Jones' review. The Department for Innovation, Universities
and Skills appears to be pressing ahead with strategic changes
to higher education policy, with little regard for the consequences
for the devolved nations, and little consultation. The role of
the Wales Office is to be the voice of Wales in Westminster, but
with regard to the development of higher education policy it has
failed to make the UK Government factor Wales into its planning.
Equally, neither the Welsh Assembly Government nor HEFCW appear
to recognise the importance of the Wales Office in raising Welsh
higher education policy and funding issues at the UK level. (Paragraph
109)
31. In addition, the
approach of the research councils is blind to the social and regeneration
consequences of their decisions. Unless there is a more active
acknowledgement of Wales by the UK Government, better coordination
with the Welsh Assembly Government and an increased awareness
within the funding bodies of the UK dimensions of their decisions,
all of these factors add up to a gloomy prospect for Welsh higher
education. (Paragraph 110)
