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Working for a smarter, stronger sector - Professor Sir Ian Diamond

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Working for a smarter, stronger sector - Professor Sir Ian Diamond

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Working for a smarter, stronger sector - Professor Sir Ian Diamond

  1. 1. Working for a smarter, stronger sector New approaches to efficiency and value for money Professor Sir Ian Diamond Principal and Vice-Chancellor, University of Aberdeen Chair, Efficiency and Modernisation Oversight Panel
  2. 2. Universities are… • Major economic actors in their own right • Huge drivers of growth and innovation • Research power-houses on the global stage • Efficient and effective – UK as “top performer”
  3. 3. …however “Higher education in the United Kingdom is undergoing a period of significant change. This is being driven by a number of factors: political, cultural, economic, and technological. The trends are global in their scope, and far reaching in their impact. They affect every aspect of university provision, the environment in which universities operate, what they will be required to deliver in future, and how they will be structured and funded…” Source: Universities UK (2012) Futures for higher education: Analysing trends
  4. 4. Funding higher education: key challenges • Austerity and public finances • Tuition fee income & inflation • Growth in the international student market • Revaluation of USS pension scheme • …and the need to invest in the future
  5. 5. Universities continue to invest in our future success 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2009-10 (actual) 2010-11 (actual) 2011-12 (actual) 2012-13 (forecast) 2013-14 (forecast) 2014-15 (forecast) 2015-16 (forecast) £millions Funding breakdown of capital expenditure 2009-10 to 2015-16 Receipts from sale of tangible assets Deferred capital grants received Mortgages and loans acquired Net capital to be financed from internal cash
  6. 6. Meeting the challenge: Our efforts so far Reporting period Target (£m) Delivered (£m) 2005/06 151 134 2006/07 150 150 2007/08 198 202 2008/09 126 159 2009/10 241 273 2010/11 363 462 Total 1,229 1,380 CSR savings in the HE sector Source: HEFCE • £1.38bn savings over CSR04 & CSR07 • £481m efficiency & VfM savings, 2011/12 • On track for over £400m savings in research
  7. 7. Efficiency and effectiveness in higher education: Phase I • UUK Task Group reported in 2011 • Progress report published in 2013 • Strong evidence of good progress in the sector • However – also set the agenda for future work
  8. 8. State of play • Progress recognised by government: “the message on efficiency has got through” • Continued engagement and enthusiasm: recent achievements show momentum throughout the sector • No end to austerity: spending decisions to be taken in 2015/16 will be made in a challenging fiscal environment • Universities must continue to invest: human, physical, digital capital key to competitiveness
  9. 9. HEFCE grant letter • Tim Melville-Ross: “...the funding settlement … incorporate significant reductions…” • Clear drive to embed efficiency and to maximise value for money for students • Greater collaboration and sharing, and better use of our resources, are critical to our future success
  10. 10. Efficiency, effectiveness and value for money: Phase II • Minister for Universities and Science recommended a second phase of work • Broad scope agreed, November 2013 • UUK identified sector partners and established working groups in core areas • To report findings and recommendations: February 2015
  11. 11. The challenges Key challenges to address are in six areas: – space and infrastructure utilisation, and asset sharing – the higher education workforce – the sector’s ability to record, quantify and analyse efficiency gains, and demonstrate the use to which these are being put – investment strategy and operational plans of institutions – academic practices and processes – open data and efficiency
  12. 12. Working together to deliver success • UUK will coordinate work but sector partners have been invited to lead projects – Asset sharing and the efficiency in research – Delivering value from the HE estate – Evidencing success – HR challenges and the HE workforce – Open data and efficiency
  13. 13. Timetable for delivery 2014 May Project symposium July Interim progress report from UUK October Final reports from working groups 2015 February Final report published – with implementation plans
  14. 14. Concluding remarks • The funding environment and fiscal pressures are not going to get any easier • We must continue to set a challenging agenda for the HE sector • The whole sector needs be far better at communicating our progress

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