Higher Education and Research Bill

Lord Mendelsohn Excerpts

Report: 1st sitting: House of Lords
Monday 6th March 2017 Lords Chamber

[Baroness Rock (Con)]

My Lords, I, too, support these amendments. Thankfully—and, I hope, auspiciously—the creation of UK Research and Innovation, UKRI, has proved relatively uncontroversial during the passage of the Bill. It is, though, vital. As noble Lords will know, whatever Article 50 and Brexit finally bring, we can be sure that we will need to be at the top of our game when it comes to commercialising research and creating innovative business ideas for the future. UKRI is a key part of making sure that we do this. It is about building critical mass in our research and innovation delivery. So, from research funding to commercialisation and capital raising through Innovate UK, we have the capability to bring these together, to identify strategic priorities for our future economy and to ensure we have a joined-up approach to develop and realise them.

I spoke at Second Reading about the importance of including the business community in the decision-making of UKRI and I am confident that the voice of business will be heard. These amendments concern the working relationship between UKRI and the other body created by the Bill, the Office for Students. In particular, it mandates co-operation in the form of a report explaining how the two have worked together during that year. I support the amendments because such co-operation is important for a number of reasons. First and foremost, the partnership should ensure a strategic, joined-up approach to the funding of teaching and research in higher education. Neither can exist without the knowledge of the other.

Secondly, much has been said about monitoring the financial stability of higher education. Provided that UKRI and the OfS do co-operate, as these amendments call for, UKRI can use its funding decisions to safeguard the financial viability of research. Thirdly, UKRI can play an appropriate role in the assessment process for research degree-awarding powers.

Lastly, UKRI and the OfS can share data to inform research and evaluation studies and provide mutual reassurance that their respective accountability functions are being taken care of. I say “lastly” but, given the significance of the creation of the two bodies and their new powers and authority, there are myriad more ways in which the two can—and must—work together.

UKRI puts all our innovation eggs into one basket. The Office for Students brings together all the regulation and regulators of higher education providers under one roof. Therefore, at a time of significant change in higher education, it is vital that the new regulator and the research and innovation body are working in lock-step. This is not something we must leave to simple chance or the whims of the leadership teams of these two organisations. That is why I support these amendments.

[Lord Mendelsohn (Lab)]

My Lords, I welcome these amendments. Amendment 3 has been signed by my noble friend Lord Stevenson of Balmacara. Of course, we will return to this subject when we discuss the research parts of the Bill next week, with a much more substantial amendment which talks about some of the elements of co-operation.

We welcome the amendment but share the view that it does not go far enough. Reporting on how these organisations co-operate is not about whether they should co-operate or even the nature of that relationship—how strong or firm a relationship they would want to forge. The amendments cause some degree of limited expectations and even an expectations mismatch. One of the briefings that I received for this seemed to believe that this would be subject to an annual report in and of itself. That is not the case. This is within the context of the existing annual reports.

Given that the reforms are about both policy design and a high level of operational change, delivery is a very important factor. It is noticeable that the Nurse review, which considered the operational elements of the creation of UKRI and the importance of weaving it into the right tapestry of partners, had a clearer and more prescriptive approach. Notwithstanding these concerns, which we will debate later, we support the amendment and hope to make further improvements later on.

[Viscount Younger of Leckie]

My Lords, I am pleased that we have found general common ground on this matter, although I picked up from this short debate that my noble and learned friend Lord Mackay, the noble Baroness, Lady Brown, and the noble Lord, Lord Mendelsohn, feel that perhaps we should go a little further.

I thought that my noble friend Lady Rock put it rather eloquently: an emphasis on working together will be expected to run through the leadership and management of both organisations, supported by a legal framework that will be sufficiently flexible to deal effectively with areas of shared interest. Additionally, the government amendments will require the organisations to state in their annual reports how they have co-operated with each other over the reporting period. We consider that this an efficient way of ensuring transparency without the creation of additional reporting bureaucracy.