UK researchers and businesses will receive at least as much money as they would have done from Horizon over this spending review period. The Government are delivering their commitment to invest £20 billion a year in R&D by the end of the period; that is a rise of 30% in cash terms over three years, and the largest-ever increase in funding over a spending review period. We continue to pursue our associate membership of Horizon, as agreed with the EU in the trade and co-operation agreement, but it takes two to tango—it is up to the EU to follow through on that agreement as well.
The shared prosperity fund was billed as a replacement for EU structural funds, much of which was spent on university research partnerships across the UK. However, the shared prosperity fund is distributed by local authorities, which have no mechanism or incentive to give money to university research. What are the Government planning to do to fill the gaping hole that now exists on research funding in the UK?
The noble Baroness underlines the fact that decisions about that spending are now taken in this country rather than in Brussels, which is an advantage, following our departure from the European Union. We are able to invest that throughout the United Kingdom in things which are decided by the elected Government and by elected local authorities, who of course pay heed to our world-leading universities and research base.
The noble Lord, Lord Rogan, has run into a technical problem so I call the noble Baroness, Lady Randerson.
I declare as interest as Chancellor of Cardiff University. I am very proud of what that university has done to sustain both face-to-face and online teaching. Cardiff is one of the universities offering testing: ours is asymptomatic testing, which will enable up to 1,000 staff and students per day to be tested. It is one of the latest generation of much more accurate tests, using the sophisticated technology that underlies the Government’s Moonshot ambition. What financial support do the Government plan to give to universities to increase the availability of their tests, because it costs millions to set this up, and to allow them to be opened up to the wider public? Will the Government fast-track the accreditation for such university laboratories and link them into the national network?
I commend the work of Cardiff and other universities, not just for providing tests for students and staff on their campuses but of course for their work in developing a vaccine. Our universities really are at the forefront of it, which is why we need to make sure that they are operating and working as well as they can. The Government are working closely with NHS Test and Trace to get to a position in which all universities have access to a testing centre within 1.5 miles of their campus, with priority for universities in areas of national intervention. On the financial point, I will write to the noble Baroness with further information if she would be happy with that.
My Lords, there are no national targets, but all higher education providers that want to charge higher-level fees need to have an access and participation plan agreed by the Office for Students. As part of those plans, they set the activities and targets to support students from disadvantaged backgrounds going to their institutions. If a provider fails to meet its access and participation plan, the OfS can hold it to account, while respecting its academic freedom and institutional autonomy.
My Lords, I declare an interest as chancellor of Cardiff University. The A-level results fiasco has distorted university recruitment and universities face considerable costs to cope with problems not of their making. Can the Minister assure us that they will be given additional funding and assisted to meet government targets such as those affecting the underrepresented group referred to in this question, who often need additional support when they gain their places at university?
The noble Baroness is right. This has been an extraordinarily difficult year both in schools and for universities, and we have worked closely with both to make sure they are equipped to do everything they need to do to help people in this challenging year. As I say, the UCAS data for this year’s entry shows a rise in the number of people accepted to university, including a record rate of 23% of people from disadvantaged backgrounds going, which is encouraging to see in these challenging times.
I beg leave to ask the Question standing in my name on the Order Paper, and in doing so I declare an interest as Chancellor of Cardiff University.
My Lords, in May we announced a package of stabilisation measures to ensure that we continue to look after the best interests of students, as well as supporting our world-class higher education system. We are bringing forward £2.6 billion of forecast tuition fee payments to help universities manage cash flow and provide support to students, and £100 million to help protect vital university research activities in England. We have also established a ministerial task force on research stabilisation.
My Lords, the Government’s recent announcement provides little new money, and 75% of that will be in loans. Universities’ research is heavily subsidised by international student fee income, which is predicted to drop by £2 billion this year. Many universities have made massive contributions of equipment, research and staffing to the fight against coronavirus. Does the Minister accept that they now need a much more ambitious package of support, because they are making research and staff cutbacks at this moment?
The noble Baroness is absolutely right to point out the vital contribution that universities are making to solving the pandemic, which is putting pressures on them as well as on everybody else. She referred to the further package of support which the Government announced this weekend. In addition to bringing forward the tuition fee payments which I mentioned in my Answer, the Government are providing a package of support to universities to continue research and innovation. That includes £280 million of taxpayer funding available to sustain UK Research and Innovation and national academy grant-funded research, which is available immediately. From the autumn, there is a further package consisting of low-interest loans with long payback periods and supplemented by a further amount of government grants. I am therefore not sure that I accept what she says about the Government’s response being inadequate.