Question to the Department for Education:

To ask the Secretary of State for Education, whether he has made an assessment of the potential effect of a reduction in per student funding for universities on their ability to collaborate and partner with local employers; and if he will make a statement.

Business-university collaboration is increasingly important, both in the development of work-ready, highly skilled graduates, and in contributing to local and regional economic growth.

My right hon. Friend, the Prime Minister announced a major review of post-18 education and funding that will ensure we have a joined up education system that is accessible to all and encourages the development of the funding and skills we need as a country. The independent panel will report shortly. The government will consider their recommendations, but we remain committed to ensuring that universities are funded on a sustainable basis.

The government is committed to ensuring that funding is available to support sustainable collaboration between universities and businesses in local areas and is supporting this work in a number of ways:

• The Office for Students (OfS), through its Industrial Strategy and Skills Challenge Competition is funding providers (including in collaboration with employers) to develop and implement projects to improve outcomes for graduates who seek employment in their home region. Details of which can be found at: https://www.officeforstudents.org.uk/publications/ofs-challenge-competition-industrial-strategy-and-skills-support-for-local-students-and-graduates/.

• Similarly, the UK Research and Innovation 'Strength in Places Fund' is a competitive fund for collaborative bids between research institutions and businesses to support significant regional growth through research and innovation. Details can be found at: https://www.ukri.org/funding/funding-opportunities/strength-in-places-fund/.

• The OfS is providing £20 million for the Institute of Coding which will target a skills gap in digital skills and involves collaboration between education providers and industry. This includes working together to create core content and introducing flexible ways to learn.

• The government also part funds the National Centre for Universities and Business which promotes, develops and supports university and business collaboration across the UK.