Science Research Funding in Universities (Science and Technology Committee Report)

Lord Patel Excerpts

Wednesday 9th September 2020 Grand Committee

Moved by

[Lord Patel]

That the Grand Committee takes note of the Report from the Science and Technology Committee Science research funding in universities (4th Report, Session 2017–19, HL Paper 409).

[Lord Patel (CB) [V]]

My Lords, I declare my associations now and in the past with academic and professional organisations, all of which are in the register of interests.

It is with great pleasure that I open this debate on science research funding in universities. I thank all noble Lords most sincerely for taking part. I am pleased to see that the desk clerk today is Donna Davidson. She was the Science and Technology Committee clerk at the time of the inquiry and a key person in writing the report. I take this opportunity to thank her for all her work during her tenure. My thanks go also to: Dr Amy Creese, our policy analyst; Cerise Burnett-Stuart, the committee assistant; and Dr Simon Cran-McGreehin, our current committee clerk, who joined us in the latter part of the inquiry. I am indebted to all the committee members, whether they are able to speak today or not, for their support.

I am pleased to see that the Minister responding to the debate is the noble Lord, Lord Callanan. To avoid him getting withdrawal symptoms, I promise that I will not finish my speech without mentioning Brexit.

My task today is to introduce the findings of our report but, as it has been a year since we published it, it may be right also to consider the effect that government policies on science funding will have on research and innovation in the United Kingdom going forward.

We launched our inquiry on science research funding in universities in May 2019. During it, the Augar review of higher education was published. UK universities are recognised internationally as the best place to conduct scientific research. Traditionally, the dual funding system for research has worked well but, over time, its flaws have begun to have a negative impact. For example, quality-related, or QR, funding has stagnated and fallen by more than 12% since 2010. This has come at the same time as a decrease in the percentage of cost recovery for research from funding councils and charities, which has added to the problem.

The committee looked at the recommendations of the Augar report in the context of research funding in universities. We were more than surprised to hear that, in making its recommendations, the review had not considered the impact they would have on universities’ ability to conduct science research—one of the key roles of universities. Furthermore, it did not think it within its remit to do so.

As the Government prepare their response to the Augar review as part of their spending review, they should be in no doubt that, if Augar recommendations are implemented, it will seriously affect the Government’s ambition to make UK a science superpower. I could not put it more strongly. Stagnation in QR funding for over a decade, a decrease in full economic costs to 70% from funders and a shortfall in support funding from government in relation to charities’ research grants leaves universities to have to cross-subsidise costs, mainly from international student fees. Added to these ongoing funding issues, there is now the significant and unknown effect of Covid-19 on university finances and research.

In 2018-19, universities reported a £4.5 billion shortfall between income and costs of research. Universities predict a reduction in the number of international students; if that happens, it will further add to financial pressures. Also predicted is a possible shortfall of approximately £790 million from other streams of income. The effect of temporary removal of controls on student numbers this year may further add to costs. Other effects of Covid-19 on UK research have included restrictions on research activities, closure of labs, et cetera, as a result of lockdown, and also reduced numbers of postgraduate students coming from overseas.

Medical charities with a shortfall in their income have cut or cancelled 18% of their research funding, amounting to hundreds of millions of pounds. The biggest threat to universities from the reduction in funding is a reduction in research talent. Early-career researchers are particularly likely to be affected. Research students’ funding is funded only to 45% of costs, resulting in a £1.5 billion deficit. Cuts to charity research funding are likely to disadvantage early-career researchers such as PhD students, postdocs and research fellows. Covid-19 clearly is going to have a significant effect, and no one knows for how long.

I turn to the government response, which in some terms is positive and is much appreciated, as far as it goes. The Government have provided short-term funding of £100 million in QR-related funding that is brought forward. A research sustainability task force engaging with the university sector to discuss science research and issues is most welcome. The £280 million sustaining university excellence fund—the so-called SURE fund—is another initiative. That is all good, but how do you plug billions of pounds-worth of shortfall? Some questions remain about the long-term level of support.

In December 2019, the Government announced their ambition to make the UK a science superpower. The recent research and development road map reaffirmed the pledge to increase R&D spending to £22 billion by 2024-25. By the way, our report identified a key issue of the large number of scientists who will be needed with this scale of increase in R&D. Estimates suggest that an increase of as much as 50% in the numbers of research scientists and technicians will be needed; in the short term, this could be met only by international mobility. The government R&D road map sets out the framework, but now it needs the Government to engage with the university sector to get the details right.

I said that I would not disappoint the Minister by not mentioning Brexit. Agreeing a sensible deal and associating UK with the Horizon Europe programme is important. It will enable the UK, a leading science research country in Europe, to continue and enhance the strong links with academia and the private sector, not only with other European counties but more globally. If the UK fails to secure association with Horizon Europe, it will be necessary to have schemes focused on international partnerships, with bottom-up, excellence-based frontier research put in place, with funding and the ability to tap into Horizon Europe on a third-country basis. Is the Minister able to comment?

Putting this all together, I have the following questions for the Minister. What steps will the Government take to improve the financial resilience of university-based research and innovation? Will this include addressing the shortfall in funder contribution to full costs and short-term and long-term adjustment to QR funding? When do the Government intend to publish the terms and conditions of the SURE fund? What involvement will the university sector have in developing the R&D road map? What involvement will the universities have in the Government’s place-based strategy for research? I look forward to the Minister’s response and very keenly look forward to listening to the speeches of other noble Lords. I beg to move.

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[Lord Patel (CB) [V]]

First, I thank the Minister. It is always possible to pick out negative comments in the response to the Minister at the end of a debate, but I shall try to be generous and not do so. I will concentrate on the many positive things that he said. Clearly, the message that he gives us is that the Government understand the needs of the research community and the necessary funding. I look forward to details of the road map, and I am pleased to hear what he has to say about the SURE fund and place-based research. I thank him for that.

I also thank all noble Lords who took part. There have been excellent, well thought-out speeches. I will not pick out any particular speeches—there will be no golden triangles. They have all been golden. One thing I will say is that I have never thought of the noble Lord, Lord Rees of Ludlow, as a weirdo. Someone who has spent a lifetime gazing at stars cannot be regarded as a weirdo. But I am only joking.

I thank you all most sincerely for joining this debate. We look forward to the spending review and what the Government have to say about funding research. Thank you all.

Motion agreed.