The noble Lord always adds colour to Question Time. The principle behind our reforms, as I have said already, was to put higher education on a sustainable footing for the long term, coupled with a rebalancing. This was of course, as the noble Lord will know, in response to and following the recommendations made by the noble Lord, Lord Browne. I believe it was the noble Lord, Lord Mandelson, who set up that particular review. As for his question on decoupling and coalition, in coalition, sometimes you agree, sometimes you disagree and sometimes you agree to disagree. That is called healthy coalition government.
My Lords, does my noble friend agree with me that, in the days when universities were funded through grant and not student loans, the Government could recoup none of the money that was given in grant? Even if we do not now recoup the whole 100%, we and the universities are still much better off all the time.
As ever, my noble friend speaks with great experience in this area, and she is of course correct. If we look at the previous quarter, in which the overall university funding pot for this year has now risen to more than £29 billion, and compare it to just a few years ago, when the funding was £12 billion, that shows once again, as I have said already, that our universities can now benefit from sustainable long-term funding.
I can certainly say to the noble Baroness that I will take back her suggestion to the department. It is important for all of us across the House to underline the importance of languages. The new national curriculum, which has now been published, includes a statutory foreign language at key stage 2. We believe that this will encourage students to take up modern languages, and indeed encourage schools to offer them. As I said earlier, the English baccalaureate is already encouraging more young people to take a language at GCSE level. Let us not forget that it was in 2004 that a statutory undertaking to provide languages at schools was removed. We are trying to restore that, and ensure that this medium to long-term process is long lasting.
Does my noble friend not agree with me that one very welcome development is that many universities now offer joint degrees? They teach modern languages alongside engineering or business studies, for example. This is exactly what employers tell us they want.
My noble friend makes a very important point. We need to understand the issue of languages at universities. Many universities offer languages as an addition to other disciplines, and people benefit from that. I come from the business community, and when I was on the board of a company we recognised that such degree courses provide a particular technical training alongside a language. Language training has changed—languages such as Chinese are much in demand by employers, and are being encouraged across the board.