A Perspective on the Challenges Facing Higher Education Professor Les Ebdon CBE Vice Chancellor, University of Bedfords

1. A Perspective on the Challenges Facing Higher EducationProfessor Les Ebdon CBE Vice Chancellor, University of Bedfordshire

2. Funding Golden State Age Universities Government Government Aided Molested Government Control

3. A Golden Age? Variable fees introduced 2006/07 21.5% funding increase in English HEIs 2004/05 – 2007/08 Biggest increases tuition fees, 30.1% Generous salary increases, 44.5% Bursaries, grants and loans Protected science budget Rising student demand - home and international

4. First signs of change ELQs £100m Cap Budget cuts 2009 £164m Funding letter 2010 £449m Unmet student demand University Modernisation Fund + £270m CSR 2010? £600m No real terms increase in public spending until 2018

5. Creeping molestation Fair access RAE → REF Funding concentration UISS Select Committee Report Contestability Employer Engagement STEM ringfence TRAC Student Charters Teaching Funding Methodology

6. Leaving it all to Browne Democratic deficit Additionality Conditionality Fee level Variability and the market Student support Graduate contribution Part-time Postgraduate

7. ‘Fair Funding For All’ million+ Treat FT and PT equally Single unified and simplified system Sustain student support Amend graduate contributions End contribution holidays Extend repayment period, 2535 years Exchequer loans, real rate of interest of 2%

8. Exchequer costs of HE

9. Resource Accounting and Budgeting Charge Loan Subsidy Nominal loan value BIS does not expect to be repaid in present value terms London Economics 26.9% ie £269 written off in every £1000 lost or interest rate subsidy

10. Scenario – increase fee by £4,000 Fee £7,225 same criteria as present Additional costs: Cost to Exchequer £1.121bn pa Cost to Students/Graduates £3.10bn pa less subsidy of loans £1.40bn pa Net cost £1.65bn pa Part-timers severely disadvantaged

11. Scenario – Fair Funding for All Free at point of study to UG FT and PT Equal access to student support FT and PT ‘Right to study’ Encourage participation Paid by increasing 25 year repayment to 35 years cf Scotland 2% real rate of interest raises £1.09bn pa

12. Wider Challenges Globalisation Quality and standards Demography Demand Postgraduate Private Providers New …streams Efficiency

13. Effects of globalisation 19% FT students non-UK 42% new academic staff non-UK (HESA) TNE set to become dominant mode of international education Curriculum consequences Financial implications

14. Quality and Standards The ‘UK brand’ Need for plain English External Examiners Public Information

15. Demographic Decline UUK 2008

16. Demand What are Universities for? Leitch targets NINJA ‘New industries’ e.g. creative industries Life long Learning Postgraduates

18. Postgraduates ‘One Step Beyond’ Promotion Extend NSS Employability Competences RDS grant more focussed Link to Browne review

19. Private providers Growing For profit Not for profit Overseas providers Selected areas How can we defend? What can we learn?

20. Six main income streams Public research Private research Public teaching Private teaching Enterprise activity Other activities

21. Efficiency savings Business process re-engineering Flexible working Shared services

22. When the wind of change is blowing, the job of a University…