Higher Education Funding

Baroness Clark of Calton Excerpts

Thursday 12th September 2024 Lords Chamber

[Baroness Clark of Calton (Non-Afl)]

My Lords, let me declare an interest: I benefited from the expansion of university education in the 1960s and received free tuition and generous means-tested maintenance grants, at both undergraduate and postgraduate level. This was the only reason I was able to pursue a career in law. Over the years at different times I have been privileged to be a member of the court at three universities: Edinburgh, Edinburgh Napier and, more recently, until 2022, the University of Dundee. Drawing on my experience at Dundee, I will illustrate some economic benefits of one university in one community—that is in Scotland, of course.

A recent economic impact assessment for the University of Dundee, which has an outstanding research record, concluded that directly or indirectly the operation contributed £449 million and 6,760 jobs to the city of Dundee’s economy. It contributes £975 million and 9,410 jobs to the Scottish economy, and it makes an enormous contribution to both the UK economy and to the international economy. The University of Dundee has an outstanding research record. It is a modern university and noble Lords may agree that it is perhaps not given the same research funding and opportunities as some of the older universities, so it has made that enormous contribution despite that.

Looking more generally, a study for Universities UK in 2023 found that, in 2021, the university sector directly or indirectly supported 76,800 jobs and added £71.3 billion of value to the economy. Educational institutions all over the UK contribute in many and varied ways to the economy, at both local and national level, and noble Lords have given us some examples today.

It is true that higher education, including university education, is a devolved function, for which the Scottish Government have responsibility. However, the economy of the UK and UK government policies have a great impact in all parts of the UK, including Scotland. An example of this impact is the immigration changes to family visas and post-work visas, which we had have heard about from other noble Lords. I point out that, in Scotland, these policies may have even greater impact because of the different model in Scotland, where we have no tuition fees but cap the number of students. These are serious problems for Scotland.

The wider issues relating to the purpose and funding of higher education, which noble Lords have touched upon, have been too long neglected by successive Governments, who have made piecemeal changes and short-term solutions which sometimes exacerbate the problems. We have heard about the problems: inadequate and short-term funding, high inflation, Brexit, Covid, incoherent government policies of internal competition—I exclude the present Government from that—heavy-handed regulation and sudden policy changes, structural inequalities, and long-standing pension and staffing issues, particularly low-paid short-term contracts. These can all be added to this unhappy picture.

Much as we have praised the research functions of our universities, there is constant underfunding in virtually all our methods of research funding. Our greatest problem is to face up to some fundamental questions. What is the public good that we want universities and other higher education institutions to achieve? How best can that be achieved and funded for the future?

The purpose of my contribution today is to say that I recognise that the new Government have many problems to deal with, and I sympathise. But higher education is so important to public good in its widest sense, as well as integral to the Government’s policies of economic development, that the Government must take action. I urge the Government to work actively and urgently with the devolved Governments and the regions to bring people together to find the short-term solutions to the many problems we have. But much more is required.

Royal commissions appear to have fallen out of favour, but we need some research. We need evidence-based solutions and cross-party consensus to consider the purpose, future and funding of higher education, and how the public good can best be served. We have heard many ideas put forward today, some of which I agree with. The Government need to push this forward. Sorting out the higher education system is essential if the Government are serious about economic revival, fairness and justice in opportunities.

I think a royal commission would be a way forward. There are obviously other models, but I urge the Government to plan now for a long-term solution. The provision of creative solutions and investment in higher education is one of the best ways to help this Government achieve their economic ambitions, and it will also transform lives and communities. That, perhaps, is just as important.