University of London Bill [Lords]

Christopher Chope Excerpts

2nd reading: House of Commons
Tuesday 16th October 2018 Commons Chamber

[Ms Buck]

I believe that nothing is more important than to make the hon. Gentleman’s life easier, so I am pleased to broadly confirm—I hope—exactly what he is saying. There is a fundamental lack of clarity internationally. Many people in this country understand the importance of the University of London’s member institutes, which have fantastic reputations. However, particularly in the global marketplace for education, there is, as he describes, a lack of clarity about the overarching University of London structure and the institutes that are, in some cases, called colleges and schools. I went to the London School of Economics and some people will not understand the difference between that and a university, so the hon. Gentleman is completely right, as I will confirm even further as I work through my remarks.

The member institutes set their own academic criteria and in most cases have their own degree-awarding powers. In addition to the London Business School in my constituency, the colleges include University College London—called somewhat confusingly both a university and a college—King’s College, the London School of Economics, Birkbeck and the newest arrival, City University, which joined the federation only in 2016. Imperial College, on the other hand, left the federation in 2007, having no other option at the time for it to achieve university status.

The University of London provides a range of opt-in central services to its member institutions, including the university library at Senate House, in which I spent many happy hours, the careers service and collaboration with the university on its international academy programme, which provides distance learning to over 50,000 students worldwide. Members pay an annual subscription to the university and terms of federation membership are prescribed in the university’s statutes.

The key rationale for the Bill, as I said in response to interventions, is that it will facilitate the university’s member institutions becoming universities in their own right. The Higher Education and Research Act 2017 changed the regulatory landscape for the higher education sector. It opened it up to new providers and shortened the process for obtaining degree-awarding powers and, crucially, for obtaining university title.

Without this Bill, relatively unknown higher education providers will be able to obtain university status while institutions such as the LSE, UCL and King’s will not. The Bill therefore ensures that such institutions are not placed at a disadvantage in the increasingly competitive market for students and teachers. Branding can matter, even for institutions with reputations as high as those I have mentioned, and some of the member institutions have found that their status as a college can cause confusion. The term “college” can suggest that the institutions are subsidiary bodies of the University of London, when they are in fact self-governing, setting their own entrance criteria and, in the majority of cases, having degree-awarding powers. They are therefore universities in all but name.

The process for institutions applying for university status is governed by the Higher Education and Research Act. Any member institution seeking to become a university in its own right will need to apply to the Office for Students for permission. How does the Bill facilitate that process? The 1994 Act described the University of London member institutions as colleges, and as I have explained, that is increasingly unhelpful, so clause 2 would define membership of the federation as including any University of London institution that has the “status of a university”. Not all member institutions will want or be able to become universities. Not all award their own degrees, for example, and that is a necessary condition of becoming a university. The definition of a member institution maintains the reference to an institution that has the status of a college under the University of London statutes. Whether a university in its own right or a college under statutes, all member institutions will enjoy an equal status within the University of London federation.

Twelve out of the 18 member institutions now wish to seek university status and are presently applying for such permission. As all 12 are long-established and high-quality providers of higher education, it is anticipated that the Office for Students will recommend to the Privy Council that the change of status be approved. The Government have insisted that Privy Council approval is dependent on the Bill obtaining Royal Assent, so to be clear: no member institution will be permitted to become a university in its own right unless the Bill is enacted.

I turn now to the provisions on the making of University of London statutes. These statutes set the objects and powers of the university and establish and define the powers of the university’s institutions. To explain the procedure for making statutes is immediately to identify why reform is needed. The prescribed procedure involves two defunct bodies and a procedure requiring the active engagement of the college governing bodies, which have made it clear that they do not regard such a process as appropriate to the modern federal relationship.

The power to make statutes is conferred on the council of the university—a body that no longer exists. The drafter of the 1994 Act anticipated changes in university governance, and the term used in the Act to refer to the council also applies to

“such other body as the statutes may from time to time designate as the governing and executive body of the University”.

Since 2003, the governing body has been known as the board of trustees, and so, in accordance with the flexible definition of “the council” in the 1994 Act, statutes may be made by the board. That is not clear, however, from the 1994 Act. Furthermore, under section 3 of the Act, the text of any proposed statutes must be sent to the University of London convocation, as the association of graduates of the university, but it ceased to exist in 2003. The Bill will ensure that the terms used in legislation reflect the actual terms now used to describe the various University of London bodies.

The 1994 Act allows statutory consultees a very generous period of four months in which to make representations on proposals. If the governing body then wishes to proceed to make the statutes, it must pass two separate resolutions, with an interval of not less than one and not more than six months, and the statutes only have effect following approval of Her Majesty in Council. That is how University of London statute is made. Whatever the virtues of the system, swiftness is not one. The university regards the process as cumbersome and unnecessarily protracted, and the college governing bodies do not wish to continue with a process that once made sense but which is no longer appropriate.

[Sir Christopher Chope (Christchurch) (Con)]

Is it right to say that the view of the university is that the other encumbrances in the process are what cause the delay, not the Privy Council stage, which is a very quick stage?

[Ms Buck]

Absolutely. The cause of the difficulty is the combination of the length of the consultation and the notional involvement of bodies that no longer exist.

Quite simply, the ever-evolving relationship with 18 member institutions and the need to keep in line with the regular changes to higher education regulation mean the university needs to be able to refresh its statutes from time to time in a more dynamic way.

I want to be clear on one matter before I turn to the proposals for streamlining the statute-making powers. The university does not see the revision of the statute-making powers as an excuse to downgrade its obligations to consult. It is committed to undertaking effective consultation and understands this to be vital to the formation of statutes that command support and confidence. The Bill envisages that the initiative for making statutes will come from the board of trustees as the governing body of the university. Clause 3, however, also enables the collegiate council, which advises the board on all matters concerning the university, to submit its own proposals for consideration.

Ultimately, however, the board can reject the council’s initiative, reflecting the fact that it is the supreme decision-making body of the university. Statutes cannot be made unless the board has consulted the council—assuming they did not originate from the council—a recognised trade union and other bodies that the university considers appropriate. The explicit requirement to consult the trade unions was passed as an amendment in the other place and reflects the university’s commitment to ensuring proper consultation with all stakeholders.

I should emphasise again that all the member institutions were consulted on the Bill and have unanimously endorsed the proposal to legislate. As under the 1994 Act, the board does not have the final say. Reflecting existing arrangements, the Bill provides that the statutes will not be effective until approved by the Privy Council. The Privy Council’s remit over the approval of university constitutional arrangements was restricted under the Higher Education and Research Act 2017. Once section 56 of that Act comes into force, English universities established other than by royal charter—those limited by guarantee—will no longer be required to seek Privy Council approval for amendments to their governing documentation. If the requirement for such approval to amendments of statutes of chartered universities is also ended, clause 4(2) of the Bill allows for the alignment of that.

That, in essence, is the main reason for the streamlining of statutes and the ability of member institutions to call themselves universities in their own right. I hope very much that the House will support this important but, as I have said, hopefully uncontroversial legislation.

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[Gordon Marsden]

That is a good point. I do not have the answer to the hon. Gentleman’s question, but the Minister might be able to give him an indication. I would simply say that it is important that these processes are taken forward as economically and speedily as possible, which will obviously involve some degree of expense. I hope that no one would wish to see flights of enthusiasm for spending lots of money to promote new titles and logos, for example, especially at this time. That is not the official Opposition’s view; it is just my personal opinion.

I shall return to the question of amendments having to go out for consultation by recognised trade unions. This needs to be widely and substantially understood, particularly by the heads of the colleges and particularly in relation to the two unions involved—the University and College Union and Unison. It is important that the workforce should be involved in the process.

The second change relates to the Privy Council, and I understand the need for that change. As a general principle, however, we remain sceptical about the diminution of the role of the Privy Council in the position of universities. Members of the other place made that point when the Bill was going through. This goes back to the old Bagehot definition of the monarchy: it is not the powers that it confers, but the powers it denies. The Privy Council has historically been a useful backstop against the flights of fancy of higher education administrators, and I will be sorry to see its role entirely extinguished. That said, I understand the reasons given in the Bill.

[Sir Christopher Chope]

I am with the hon. Gentleman on that. When evidence was given to the other place, every time there was a challenge that these new powers could be abused, the defence was that, ultimately, there was the safeguard that approval would need to be given by the Privy Council, yet clause 4 envisages a time when the Privy Council will no longer be able to exercise its power.

--- Later in debate ---

[Sir Christopher Chope (Christchurch) (Con)]

This debate would not have taken place had I not blocked this Bill going through on the nod on Second Reading, and the contributions we have had today show that it has been a worthwhile exercise. I do not believe Bills should go through this House without being discussed, particularly when they are opaque. When the Bill was being debated in the other place, it was conceded that the foremost reason and key rationale for it was that it would facilitate universities becoming universities in their own right in London, and it was conceded that that was not clear in the Bill. If something is not clear in the Bill, how are we going to get to the bottom of it unless we start debating it? That is where the value of what we are doing this evening lies.

At the moment, there are 18 self-governing institutions within the University of London’s federal structure, a lot of which are, in many respects, regarded as universities in their own right. For example, if one looks at the 2019 university league tables, one sees that the London School of Economics is third, University College London, of which my late father was a graduate, getting first-class honours in Latin, is 10th—

[Bob Stewart]

Better than you then.

[Sir Christopher Chope]

Far better than me. King’s College London is 26th, Royal Holloway is 28th, Queen Mary is 38th, the School of Oriental and African Studies is 46th, St George’s is 52nd, Goldsmiths is 62nd and City, which has recently joined the University of London, is 66th. The college to which my hon. Friend referred, Birkbeck, is 125th. We are told that other colleges, beyond the ones I have mentioned, are aspiring to become universities in their own right. They may include the Royal Central School of Speech and Drama, which this league table puts top of the arts and drama institutions. The question I would like to ask is this: what is going to happen to the other colleges within the federation of the University of London? They are probably not going to be in a position to become universities in their own right, and may not even aspire to do so. What is going to be done to protect their position? Obviously, they operate on the basis that they are part of the University of London, with all the prestige that that brings to their activities. A number of the 24 Russell Group universities are in fact colleges of the University of London—King’s College, LSE, Queen Mary and University College. A lot of these colleges are already seen as universities in their own right, so is it really going to make an enormous difference when this Bill is enacted? I am not so sure about that.

I was disappointed that the Minister did not address one of the hot topics of the moment, which is grade inflation. To what extent are these 12 new universities, instantly created as a result of this legislation, going to engage in grade inflation? A report was produced by Reform, and Tom Richmond, the senior research fellow who was its author, has said:

“Rocketing degree grade inflation is in no one’s interest.”

It continued:

“Universities may think easier degrees are a way to attract students but eventually they will lose currency and students will go elsewhere, even overseas.”

It went on to say:

“Restoring the currency of degrees would also mean better value for money for the £18 billion that universities receive each year in tuition fees.”

That report recommended that universities are stripped of their powers to award degrees and that final-year students should instead sit new national assessments for each degree course. The Bill will do quite the reverse by increasing the number of organisations that will be able to award degrees, with the perverse incentive that they will want to be able to make their degrees easier and engage in the grade inflation about which so many people are concerned. I am interested to hear the Minister’s response to that point.

[Mr Gyimah]

I thank my hon. Friend for pursuing this line of argument but suggest that he is making several leaps in his assumptions. The receiving of the university title, and in this case correcting an anomaly, do not in themselves entail the university lowering its standards. University standards are incredibly important, not only for new universities but for existing universities—indeed, for all universities. We can do a lot using the quality bodies, such as the Quality Assurance Agency for Higher Education, to ensure that the problem of grade inflation to which my hon. Friend refers is dealt with, but grade inflation is not an argument against an institution gaining the university title when it does exactly the same work as another institution that has that title.

[Sir Christopher Chope]

I am grateful to the Minister for responding to my point with that long intervention. I shall not engage in a long argument about it, but he is talking about all 18 colleges of the University of London being able to become universities in their own right. Why are they going to want to do that? Currently, the collegiate council can deal with issues relating to grade inflation within the University of London. I am surprised that my hon. Friend the Minister does not think that that is an important issue with which the council should be able to deal. In itself, the creation of a new university obviously does not mean that it will indulge in grade inflation, but when a report has been produced that suggests that fewer, rather than more, universities should award degrees, the Bill seems to me to be going in the wrong direction.

[Mr Gyimah]

I remind the House that we are not talking about institutions that just arrived yesterday. All these colleges have already demonstrated fully, in practice, that they are compliant with the financial sustainability, management and governance requirements that apply to all directly funded higher education institutions. My hon. Friend should keep that in mind when he comments on these institutions and whether they may or may not indulge in grade inflation or should have the title of university.

[Sir Christopher Chope]

Obviously I always take such things into account, but my hon. Friend has not actually told me what the Government are doing to counter grade inflation in universities. From what he has said, it seems implicit that he regards it as a serious problem. If he wishes to intervene again, I would be grateful if he told me what he is going to do about it.

[Mr Gyimah]

I am trying not to be drawn into that particular issue because it is not germane to this debate, but a significant piece of work is currently being done on quality in higher education, looking into grade inflation, unconditional offers, the quality of teaching and value for money in degrees. All are important to ensure that we safeguard our world-class university system, but I have not dwelt on that because it is not the subject of the debate.

[Sir Christopher Chope]

It may not be the subject of the debate, but it would be very much a pertinent subject for each college that wishes to acquire university status in its own right.

Before I finish, let me refer to clause 4(2), which enables the disengagement of the Privy Council from having to approve what comes out of the collegiate council’s consultation process. It seems to me that what was said in the other place—I referred to it in an intervention—was absolutely germane. We are talking about relaxing the control of the governing body over what happens within the University of London federation. If the safeguard against abuse of that relaxed control is the involvement of the Privy Council, why does the Bill also legislate to do away with that Privy Council involvement? It would be helpful if the answer to that was available now.

We could perhaps also be told at some stage to what extent the Privy Council’s engagement in this process over the years has resulted in changes to processes that would otherwise have taken place without the approval of the Privy Council. Has the Privy Council’s involvement been a pointless exercise, or has it brought pressure to bear to ensure that the only changes carried through are those that are sensible and in the best interests of all 18 members of the University of London’s federal structure?

I fear that colleges in the University of London not becoming universities in their own right will have the consequence of putting tremendous pressure on the other colleges, which may be to their detriment. However, I have to accept that, so far, they do not seem to have complained about it, so all one can do in such a debate is to raise the issue and see what flows from it.

The Bill will now obviously go to an Unopposed Bill Committee, because there are no petitions against it. In recent Unopposed Bill Committees, pertinent questions have quite often been asked about private Bills. I hope that that process will be gone through again, and that, if the Bill needs to be amended in any way, that process will not be avoided but will be facilitated as a result of today’s debate.

Question put and agreed to.

Bill accordingly read a Second time and committed.