Working for a smarter, stronger sector - Professor Sir Ian Diamond
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Working for a smarter, stronger sector
New approaches to efficiency and value for money
Professor Sir Ian DiamondPrincipal and Vice-Chancellor, University of Aberdeen
Chair, Efficiency and Modernisation Oversight Panel
Universities are…
• Major economic actors in their own right
• Huge drivers of growth and innovation
• Research power-houses on the global stage
• Efficient and effective –UK as “top performer”
…however
“Higher education in the United Kingdom is
undergoing a period of significant change.
This is being driven by a number of factors:
political, cultural, economic, and technological.
The trends are global in their scope, and far
reaching in their impact. They affect every
aspect of university provision, the
environment in which universities operate, what
they will be required to deliver in future, and
how they will be structured and funded…”
Source: Universities UK (2012) Futures for higher education: Analysing trends
Funding higher education: key challenges
• Austerity and public finances
• Tuition fee income & inflation
• Growth in the international student market
• Revaluation of USS pension scheme
• …and the need to invest in the future
Universities continue to invest in our future success
2009-10 (actual)
2010-11(actual)
2011-12(actual)
2012-13 (forecast)
2013-14 (forecast)
2014-15 (forecast)
2015-16(forecast)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Funding breakdown of capital expenditure 2009-10 to 2015-16
Receipts from sale of tan-gible assets
Deferred capital grants received
Mortgages and loans acquired
Net capital to be financed from internal cash
£ m
illi
on
s
Meeting the challenge: Our efforts so far
Reporting period
Target (£m)
Delivered (£m)
2005/06 151 134
2006/07 150 150
2007/08 198 202
2008/09 126 159
2009/10 241 273
2010/11 363 462
Total 1,229 1,380
CSR savings in the HE sector Source: HEFCE
• £1.38bn savings over CSR04 & CSR07
• £481m efficiency & VfM savings, 2011/12
• On track for over £400m savings in research
Efficiency and effectiveness in higher education: Phase I
• UUK Task Group reported in 2011
• Progress report published in 2013
• Strong evidence of good progress in the sector
• However – also set the agenda for future work
State of play
• Progress recognised by government: “the message on efficiency has got through”
• Continued engagement and enthusiasm: recent achievements show momentum throughout the sector
• No end to austerity: spending decisions to be taken in 2015/16 will be made in a challenging fiscal environment
• Universities must continue to invest: human, physical, digital capital key to competitiveness
HEFCE grant letter
• Tim Melville-Ross: “...the funding settlement … incorporate significant reductions…”
• Clear drive to embed efficiency and to maximise value for money for students
• Greater collaboration and sharing, and better use of our resources, are critical to our future success
Efficiency, effectiveness and value for money: Phase II
• Minister for Universities and Science recommended a second phase of work
• Broad scope agreed, November 2013
• UUK identified sector partners and established working groups in core areas
• To report findings and recommendations: February 2015
The challenges
Key challenges to address are in six areas:
– space and infrastructure utilisation, and asset sharing
– the higher education workforce
– the sector’s ability to record, quantify and analyse efficiency gains, and demonstrate the use to which these are being put
– investment strategy and operational plans of institutions
– academic practices and processes
– open data and efficiency
Working together to deliver success
• UUK will coordinate work but sector partners have been invited to lead projects– Asset sharing and the efficiency in research
– Delivering value from the HE estate
– Evidencing success
– HR challenges and the HE workforce
– Open data and efficiency
Timetable for delivery
2014
May Project symposium
July Interim progress report from UUK
October Final reports from working groups
2015
February Final report published – with implementation plans
Concluding remarks
• The funding environment and fiscal pressures are not going to get any easier
• We must continue to set a challenging agenda for the HE sector
• The whole sector needs be far better at communicating our progress
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