Brexit: Impact on Universities and Scientific Research

Viscount Younger of Leckie Excerpts

Thursday 3rd November 2016 Lords Chamber

[Viscount Younger of Leckie (Con)]

My Lords, I am grateful to the noble Lord, Lord Soley, for securing this debate on the potential impact of the UK’s withdrawal from the European Union on funding for universities and scientific research. This is an important topic which is of great interest to the House, as reflected by the number of distinguished Peers contributing today. I shall start by addressing the important and sobering point raised by the noble Lords, Lord Smith, Lord Bilimoria and Lord Mendelsohn, about hate crime. We have been working closely with the police at both the national and the regional level to monitor hate crime since the referendum result. Local forces have the necessary assistance and guidance to respond. On 26 July we published a comprehensive cross-government hate crime action plan, which includes education plans. Ministers and officials have met the ambassadors and high commissioners of EU states to offer reassurance.

As many noble Lords have commented, we are right to be proud of the strength of our research and innovation base and the quality of our universities. Research, innovation and knowledge are the drivers of our global competitiveness and a key source of economic advantage. Indeed, in one of her first major speeches as Prime Minister, Theresa May said that she wanted the United Kingdom to formulate a new industrial strategy. British science is one of our truly outstanding national assets, which along with our other areas of comparative advantage will surely be one of the main building blocks. I thank my noble friend Lord Ridley for mentioning that we should use the current changes as an important way of taking a leap forward and see them as an opportunity, although by no means being complacent about the issues we have to face.

We have continued to recognise that the result of the EU referendum has brought with it some uncertainty for our universities and researchers, and I am mindful of today’s news. I will go on to talk about the important steps that the Government have already taken to address those concerns, but it may be helpful to start by reflecting on the UK’s research and innovation landscape. I appreciated the historical perspective highlighted by the noble Baroness, Lady Wolf, and how the climate was somewhat different 20 years ago.

In the global league tables today, the UK has four universities in the world’s top 10 and 18 in the top 100. UK universities are home to both world-class teaching and innovative research. At this point I should like to address some of the concerns raised about the Higher Education and Research Bill, notably those expressed by the noble Lords, Lord Haskel, Lord Giddens and Lord Rees, and the noble Baroness, Lady Garden. We believe that the current higher education regulatory system is sub-optimal and was designed for an era of grant funding. It needs to be brought up to date. The reforms in the Bill will drive innovation, diversity, quality and capacity, ensuring that we remain attractive internationally. It will provide stability, putting in place the robust regulatory framework that is needed. It joins up the regulation of the market, which is essential to ensure that students are protected and that both they and the taxpayer receive good value for money from the system. The right reverend Prelate the Bishop of Portsmouth, the noble Baroness, Lady Garden, and the noble Lord, Lord Mendelsohn, raised the issue of the teaching excellence framework and the rating system. The TEF has the potential to enhance the reputation of UK higher education. Students will have a better idea of what to expect from their studies compared with anywhere else in the world, while providers with high scores in the teaching excellence framework will be able to market themselves even more effectively.

The noble Lord, Lord Broers, made a point along the same lines about why we are aiming to bring Innovate UK into UKRI. We believe this will bring benefits to business, researchers and the UK as a whole. It will help businesses identify partners and it will mean research outputs are better aligned with their needs. Researchers will benefit from greater exposure to business and commercialisation expertise. I look forward to addressing the details of the Bill when I help to take it through the House quite soon.

The UK science sector is one of the very best in the world, as many Peers have highlighted. It is highly efficient, competitive and internationally successful. The noble Lord, Lord Soley, highlighted the strong, essential interconnections that are so important with other countries. Within the G7 we have the most productive science base in terms of papers and citations per unit of GDP. As the noble Lords, Lord Kakkar, Lord Fox and Lord Mendelsohn, said, we punch well above our weight. With only 0.9% of the global population and 3.2% of R&D expenditure, we produce 15.9% of the most highly cited research articles, which provides a measure of the quality and impact of UK research. We have a long-established system that supports, and therefore attracts, the brightest minds at all stages of their careers. We will continue to fund excellent science wherever it originates and, importantly, ensure there is academic freedom to tackle important scientific questions.

As I have previously said, we appreciate that the result of the referendum has raised understandable concerns, given the multiple interactions between UK and EU institutions and structures that impact on UK researchers and universities. We have acted quickly to provide important reassurances. Just after the referendum result the Prime Minister wrote to Sir Paul Nurse, the Nobel prize-winning scientist and chief executive and director of the Francis Crick Institute, to reassure him of,

“the government’s commitment to ensuring a positive outcome for UK science as we exit the European Union”.

I reassure the noble Lord, Lord Trees, that this is a priority. I note his points about the importance of science and animal research.

As my noble friend Lady Eccles mentioned, in August this year the Chancellor committed that the Treasury will guarantee all competitively bid-for EU research funding that is applied for before our departure from the EU and is successful. The Government have communicated this announcement widely through our embassies, and we are grateful for the efforts of UK stakeholders who have been reinforcing this message through their networks. It is very positive for the sector that the nearly 4,000 UK participants currently working on Horizon 2020-funded projects can be reassured that they can continue to collaborate on excellent research and innovation.

This is not just about academic research; our innovative businesses are also doing well in securing Horizon 2020 funding—€411 million since 2014, putting us in second place in the programme. This August’s announcement should encourage businesses to continue to participate in applications for EU funding.

[Lord Hunt of Chesterton]

For how long will this continue? Will it just be to the end of the existing programme in 2020? That is the question nobody knows the answer to.

[Viscount Younger of Leckie]

It is a question that has been raised in the debate. I cannot give any further reassurances on that, but I and other Ministers have laid out exactly where we are at the moment. Clearly, discussions are under way. I am sure all will become clear.

I listened carefully to the speech of the noble Lord, Lord Broers, about innovation. He is right to distinguish between curiosity, or pure research, and research-linked productivity and industry. We will discuss these important matters when we discuss the Higher Education and Research Bill.

The Chancellor also confirmed that structural and investment fund projects signed before the UK departs the EU will also be guaranteed by the Treasury after we leave. Funding for structural and investment projects will be honoured by the Treasury, so long as they meet the value-for-money criteria and are in line with domestic strategic priorities.

To reassure EU students planning to come to study in the UK, we have announced that the rules regarding the student loans that EU nationals receive from the Student Loans Company are unchanged and remain in force. Therefore, current EU students and those starting courses in the 2016-17 and 2017-18 academic years who are eligible for student support will continue to be able to access this support for the duration of their course, even if this continues after we have left the EU. Student Finance England will assess these applications against existing eligibility criteria, and will provide support in the normal way.

[Baroness Blackstone]

My Lords, a number of contributors to the debate asked whether the Minister could say what will happen in 2018-19, which is likely to be before the UK exits the European Union, and after that. The Minister has given no answer to either of those questions.

[Viscount Younger of Leckie]

That is true. I am unable to give an answer; I can be candid about that. However, I reassure the noble Baroness that this is a very important point and that these matters are being discussed and will continue to be discussed as we move forward in this particularly challenging process.

We are also grateful to the European Commission for the swift reassurances it has provided. Commissioner Moedas said in July this year:

“As long as the UK is a member of the European Union, EU law continues to apply and the UK retains all rights and obligations of a member state”.

This means that we still have the same terms of access to European research funding, such as Horizon 2020, for as long as we are still a member of the EU.

[Lord Liddle]

Following on from my noble friend’s question, I point out that we will not have left the EU by the start of term in September 2018. Does the fact that EU obligations continue to apply mean that EU students will be eligible for British loans to come to our universities in autumn 2018? Will the Minister give us that assurance?

[Viscount Younger of Leckie]

I have laid out exactly what our guarantees can be, but I can only say again that I am unable to comment beyond those guarantees. I hope I have reassured the House that this is a very important matter.

[Lord Liddle]

Would the Minister write to me about this point?

--- Later in debate ---

[Viscount Younger of Leckie]

I can certainly write to the noble Lord and copy other noble Lords into a letter about this matter, but I fear I am not able to go further than other Ministers have gone. I understand the point that the noble Lord makes.

To continue on Horizon 2020, I acknowledge the enormous contribution my noble friend Lord Willetts made to the strength of the research base while he was Minister for Universities and Science. I understand that he played an important role in discussions that led to Horizon 2020 being a well-funded part of the EU budget and simpler for researchers to navigate. I am also grateful to my noble friend for his suggestions on how we can continue to collaborate with the EU on Horizon 2020. He raised one or two points, including the possibility of parallel funding. I can assure him that this will be part of those discussions.

Commissioner Moedas has also made it very clear that UK participants are not to be discriminated against when they apply for Horizon 2020 grants. He said:

“Horizon 2020 projects will continue to be evaluated based on merit and not on nationality. So I urge the European scientific community to continue to choose their project partners on the basis of excellence”.

The Minister for Universities, Science, Research and Innovation, Jo Johnson, continues to be in close contact with Commissioner Moedas. BEIS, the new department, working closely with all relevant departments such as the DfE, remains vigilant and open to any evidence of problems. As a reassurance, we have a dedicated inbox for people to send in details of any concerns. I know that the noble Lords, Lord Liddle and Lord Bragg, cited specific examples of where there may be problems. The noble Lord, Lord Bragg, also mentioned Leeds; my son graduated there this year. I noted with concern also the news from Cambridge about the 14% reduction in applications from EU students.

Although we have had some anecdotal evidence of people being asked to stand down from consortia or project-lead positions, there are no clear-cut examples specifying projects or consortia that have turned down UK participants. These anecdotes show that there has been some adverse reaction following the vote, but we also have anecdotal stories of UK researchers who were initially told that they were no longer welcome in consortia, but then later the position changed—possibly connected to the funding announcement. We are engaging with the people who emailed us to check whether any new or other issues are being experienced, because this is an important matter. The announcement on underwriting Horizon 2020 funding has led to a slow-down in people contacting us and we want to make sure they keep sharing their information with us.

I want to reference comments on Horizon 2020 made recently to the Higher Education and Research Bill Committee by Sir Leszek Borysiewicz of the University of Cambridge. He said:

“We are quite confident that we can deal with the assurances that the Government have given in the short term … We have not experienced what many institutions have experienced, with people not being asked to continue on grants”.

Looking to the future, we will work with all stakeholders to ensure that our universities and researchers are protected as the UK establishes its new position in the world. So how can we be sure that the UK continues to excel?

First, I say in response to the noble Lords, Lord Fox and Lord Lipsey, that EU nationals who have lived continuously and lawfully in the UK for at least five years have an automatic and permanent right to reside under EU law. EU nationals who have lived continuously and lawfully in the UK for at least six years are also eligible to apply for British citizenship if they would like to do so.

As mentioned earlier, what happens after Brexit is up for negotiation. We are clear that we need to understand the impact of any changes we make to the UK’s immigration system on the different sectors of the economy and the labour market, including in terms of the highly skilled staff, both academics and technicians, who underpin university departments and businesses. I know that the noble Baroness, Lady Blackstone, raised this issue and I hope that this gives her some reassurance that we are taking this matter extremely seriously.

Let me be clear that we recognise that EU researchers have contributed greatly to the diversity and talent base of the UK’s workforce. We hugely value the contribution of EU and international staff. This has been emphasised in recent statements by the Secretary of State for Exiting the European Union, where he has said:

“If we are to win in the global marketplace, we must win the global battle for talent. Britain has always been one of the most tolerant and welcoming places on the face of the earth. It must and it will remain so”.

Secondly, we must ensure that excellent collaboration in cutting-edge research can continue with European and international partners—this important point was raised by my noble friend Lord Willetts and others. We are now more ambitious than ever to build global research partnerships that not only put the UK at the forefront of international research on emerging global challenges but support the economic development and social welfare of developing countries around the world. We should remember that academic and research co-operation in Europe predates the EU by centuries, and the community of European academic institutions has always been much wider than the EU.

The noble Lord, Lord Giddens, and my noble friend Lord Willetts asked what type of consultation the Government were engaging in on post-Brexit research funding. I can reassure the House that the Government have been talking extensively to stakeholders. Jo Johnson announced during last week’s Select Committee inquiry into similar issues that he would invite a number of senior representatives of UK research and innovation to a high-level consultative forum to discuss the opportunities and issues arising from the UK’s exit from the European Union.

Thirdly, we must ensure that UK researchers continue to have access to, and leadership of, world-class research facilities. We have access to major research infrastructures across the world, such as the Large Hadron Collider, in which the UK plays a leading role. We are a major partner in building new infrastructure such as the Square Kilometre Array, whose global headquarters will be based at Jodrell Bank—I think the noble Lord, Lord Bilimoria, raised that point.

Finally, we need to ensure a supportive funding and regulatory landscape. As a Government, we recognise the contribution that our world-class research base makes to our economy and well-being. This is why we have committed to protect the science budget in real terms. The reforms that we are introducing through the Higher Education and Research Bill will give us a best-in-class regulatory system for higher education, and UKRI will be a strong voice for UK research and innovation on the global stage.

I am a little short of time; I will address as many questions as I can in the time available. Otherwise, as the House would expect, I will write to noble Lords.

My noble friend Lord Willetts and the noble Lords, Lord Broers and Lord Kakkar, spoke of the concerns for science and innovation in relation to the new industrial strategy. It was mentioned that VAT changes might be made; for example, charges on buildings cohabited by business and universities. I can reassure the House that the Prime Minister, the Chancellor and the Business, Energy and Industrial Strategy Secretary are clear that building a productive, open and competitive business environment is vital. Key to this Government’s aims will be delivering a comprehensive industrial strategy that gets the whole economy firing. The objective of the industrial strategy is to deliver the Prime Minister’s vision of an economy that works for all. There are three key themes. First, we can look again at the regulatory environment. We have to work hard to make sure that the European framework covers excellent research and innovation—data protection is an example of that. Secondly, we can look afresh at how we optimise international collaborations, mentioned in debate today. Thirdly, we have an opportunity through the industrial strategy to put research and innovation at the heart of what we do.

I shall stop there. As I said, I will write to noble Lords addressing the good number of questions that were raised in this long debate.