Brexit: Impact on Universities and Scientific Research

Lord Paul Excerpts

Thursday 3rd November 2016 Lords Chamber

[Lord Paul (Non-Afl)]

My Lords, I thank the noble Lord, Lord Soley, for introducing this timely debate and declare an interest as the chancellor of the University of Wolverhampton.

The outcome of the EU referendum was not the result that most in the higher education sector wanted, wished for or indeed expected. However, a decision has been made, and we must all accept the result and work constructively with the Government to support the best possible outcome for the UK during the negotiations and beyond.

Universities have a key role to play. They are a national asset that has played and will continue to play an essential part in promoting and driving economic growth, as well as ensuring that we offer and deliver a fairer society. I am certain that our British universities can thrive and prosper post exit but they must receive the right support from our Government. There is too much to lose.

The UK university sector is innovative, entrepreneurial and responsive. That is thanks largely to the autonomy of the sector—something we hope this House will seek to preserve and retain when the Higher Education and Research Bill is considered soon. We have seen positive signs of intent from the Government recently and I am very pleased to note the extension to the government guarantee for funding European Structural and Investment Funds projects. This complements similar guarantees regarding Horizon 2020 research funding.

So there are some good signs but much more needs to be done. We all understand that the Brexit negotiations will be complex, tricky and time consuming, but we must not allow our universities to be unnecessarily and unhelpfully constrained. Our approach should enable them to enhance and promote international research collaboration, with partners both in Europe and across the world; to gain access to increased levels of investment in research and innovation; and to develop workable policies to promote the UK as an attractive destination for all international students and staff, including considerate and pragmatic immigration policy reforms. Collectively, we have some 125,000 EU students and 43,000 EU staff at our universities—all adding value to our economy. We should also enable universities to foster and grow global opportunities for UK students and staff by enhancing mobility programmes, as well as create an environment that facilitates the recruitment and retention of the best available talent.

The UK university system is well respected around the world and we must not jeopardise this good standing. To do so would be detrimental on a number of levels. The figures do not lie. Last year the total value of knowledge exchange interaction between UK universities and their partners across the economy increased to £4.2 billion, and the higher education sector generates nearly £11 billion per annum in export earnings. We lead the world in return on investment from the commercialisation of research, and we match the US in our level of engagement with industry.

Universities help to create new jobs and new businesses in communities. Last year alone, more than 4,100 new start-ups were founded by UK graduates, a great many nurtured by our universities. The University of Wolverhampton has recently created the Caparo Management Suite as a forum space in which business leaders, academics and students can all come together to exchange ideas and promote new business opportunities and development. It is essential that we keep our education system international. Our universities do much for our foreign students but the UK benefits significantly in return.

At Wolverhampton, we pride ourselves on being the university of opportunity. We openly welcome foreign staff and students, who in turn contribute an awful lot in terms of talent, ability and commitment. They add value to the system and we must continue to attract and retain that talent.

Education: Contribution to Economic Growth

Lord Paul Excerpts

Thursday 5th December 2013 Lords Chamber

[Lord Paul (Non-Afl)]

My Lords, I, too, congratulate the noble Baroness, Lady Morgan, on initiating this timely debate. We have had two very good maiden speeches, and I thank the noble Lord and the right reverend Prelate for their contributions.

Most of the world has had a difficult a time in the past few years, but now the economy is doing well, not just here but in the United States, Europe and Japan. Britain is ahead of the rest of the world and it is time to look at how we can sustain that momentum.

First, I declare an interest as chancellor of two universities: the University of Wolverhampton and the University of Westminster. I know at first hand the role that accessible quality education plays in economic regeneration. The opportunity to participate in education and gain skills must be available to all. This is what will grow the economy and ensure that we have a skilled workforce ready to meet the challenges ahead.

Other countries are accepting this challenge. The Government of India have set a target to have 40 million students in higher education by 2020, when it is forecast that India will supply 12% of the world’s graduates. China is expected to produce 29% of all higher education graduates by then. I am glad that the Prime Minister had exchanges with students from both countries on his recent visits.

Higher education is now a bigger industry in the United Kingdom than the aircraft industry, agriculture or even the pharmaceutical industry. Universities generated £59 billion of the UK’s output in 2009, during the first year after the recession, and created 670,000 jobs, either directly or indirectly. Yet the UK is still ranked by the OECD in seventh place for the skills level of the general population, which indicates that we need to provide more resources for adult learners. We know also that despite a 30% increase in participation in higher education by young people from less advantaged backgrounds, we still have some way to go to ensure that our economic recovery benefits from the creativity and entrepreneurialism of people from all walks of life.

As the only university in the Black Country, the University of Wolverhampton is committed to the regeneration of the region and providing the educational opportunities that I speak of. However, universities such as Wolverhampton are facing significant funding cuts that will affect their ability to provide these opportunities. Funding for teaching and widening participation must be protected to ensure that we maintain and grow our skills base across all parts of the population. In the Black Country alone, 80,000 more graduates are required to bring the region close to the national average. This is not unique to the Black Country. Many parts of the country have the same needs, and those future graduates ought to come from the regions that need them.

In the past, research and science budgets have been protected, while teaching and widening access funds have been cut. This needs to change. Research is not the only or the most effective way to grow an economy. Developing the workforce of today and the future is crucial to economic development, and we must enable all who can benefit from higher education to have an opportunity. This provides concentrated and embedded economic growth across the country.

The British model of higher education prepares students well for jobs. At the University of Westminster we welcome students of 150 nationalities, and we are working hard to upgrade it to world-class status. Today, the university is a world leader in photography, film and media, and is ranked 19th in the QS world rankings. It has probably the best complementary medicine department in Europe, as well as a very successful department of biomedical sciences.

London continues to attract many of the most able international students, but the challenges posed by changes to our immigration system mean that the numbers are falling in comparison with those of the United States, India and China. This is affecting our higher education market, which is currently valued at £5 billion to the UK economy and is forecast to rise to £16.9 billion by 2025. Therefore, we must remove students from the net migration target, as most are here for only a short time.

The number of higher-level skilled jobs is set to grow over the next decade. By 2020, more than 80% of new jobs will be in occupations with high numbers of graduates. Hence students completing a UK degree will be more valued than before.

Like Andrew Witty, I believe that economic regeneration should not be an add-on to the core business of a university; it should be intrinsic in all that it does. At the heart of course development and design, and of research and development, must be the driving force of meeting the needs of our economy. But public funding, especially for teaching, needs to be protected. Only by doing so will we provide the innovation and skills base that we need to sustain and, more importantly, grow our economy.