10 ways for Labour to fill the HE policy vacuum

• This HEPI blog was kindly authored by Dr Giles A.F. Carden, Chief of Staff & Chief Strategy Officer at the University of Southampton. He writes here in a personal capacity.

At a recent HEPI Partners’ dinner, Sir Anthony Seldon cited his new book coauthored with Tom Egerton ‘The Conservative Effect 2010-2014 – 14 Wasted Years?’ He provided some thoughts on what in higher education had changed for better or worse during this period. It will not have gone unnoticed that higher education barely featured in the 6 week election campaign and reflecting on this, Sir Anthony went on to encourage senior representatives from the sector to fill the policy vacuum now a new government is in place.

By numerous international measures, our university system is globally competitive and one of the jewels in the UK’s economic crown. However, the sector is facing a number of challenges and there are matters that need addressing. The new Labour Government quite rightly has a strong focus on economic growth and new higher education policies should seek to support this central goal. What follows are some initial thoughts that aim to foster a debate and fill the current policy vacuum. The Government:

1. Must bring stability to the student finance system and should adopt the recommendation set out in Lord David Willetts’ HEPI report ‘There should be a quinquennial review of the levels of fees and loans so they can be recalibrated as the labour market and the economy change.’
2. Should provide stability to the international student visa regime (and this must include dependents). Years of uncertainty have caused volatility in international student recruitment. The sector has met the previous government’s higher education export targets and can potentially do more, bearing in mind other competitor countries have introduced stringent immigration policies, reducing their attractiveness as a destination for students. It should also encourage the Migration Advisory Committee to report immigration numbers separately rather than in the net migration figures. It is arguable that international students do not put undue pressure on the country’s infrastructure including the NHS, as they are generally young with few health issues and in relation to housing, most live in specifically provisioned accommodation. The economic benefit of higher education exports is beyond doubt and its contribution to GVA has been reported via work undertaken by Oxford Economics for Universities UK.
3. Should ensure higher education exports and research are a central consideration when negotiating new trade deals.
4. Should consider the risks associated with universities’ generally high dependency on fee income from Chinese students. Whilst many institutions are now pursuing recruitment diversification strategies, this is neither an easy nor quick solution. The Government should work with the sector now, to undertake scenario planning to model the impact on recruitment and sector finances should there be a geopolitical crisis in East and/or Southeast Asia.
5. Should acknowledge that higher education is not a traditional market and should consider fundamental reform to the Office for Students to ensure it delivers more effective regulation. It should start by reframing the overly simplistic approach to scrutinising value for money for taught programmes and adopt a new, broader definition which is underpinned by the social and economic benefits of higher education.
6. Should follow through on the manifesto promise to reform the apprenticeship levy but should also look more broadly at how the levy is used and how the degree apprenticeship system works and is regulated. Degree apprenticeships give students the opportunity to gain a higher qualification without accruing the massive student debt of traditional study. However, there is a disparity in the student population. Just over half of degree apprentices come from areas with high educational advantage, while only 30% come from underrepresented areas. Tacking this issue is important to widening access.
7. Should have a strategy for digital education as this model of delivery traditionally appeals to more mature students who wish to upskill or reskill and it taps into overseas recruitment markets that differ from traditional face-to-face provision. Market research firm Holon IQ predicts strong growth in online education in the coming years.
8. Should see investment in research as essential to its mission to foster economic growth and should meet the OECD average total investment in R&D as a percentage of gross domestic product. R&D and innovation benefit people in the UK and around the world by underpinning our industries, creating jobs and applications that improve the quality of our lives and enriching our cultural wellbeing.
9. Should implement policies to enhance the focus on fostering enterprise activity in universities and help the sector improve how it translates research excellence into economic impact. UK university spin-out investment increased from £1.06 billion in 2014 to £5.3 billion in 2021 and is second only to the US but the government should set a more ambitious target and create the conditions for universities to achieve it. The outcomes of the Independent Review of University Spin-out Companies should be implemented. UKRI states ‘Higher Education Innovation Funding provides a strong return on investment, with £8.30 generated for every £1 of funding.’ Annual HEIF allocations in England are currently £260m, this figure should be increased as part of the government’s drive for economic growth. Enterprise and knowledge exchange should no longer be seen as “third leg” activity but should have equal recognition and standing with education and research.
10. Artificial intelligence is now ubiquitous in the national debate about our country’s future, and we are already in the Fifth Industrial Revolution. As Tony Blair stated at his Institute for Global Change conference this month, AI will be central to economic growth and the development of more efficient and affordable public services. An increased allocation of targeted funding should be allocated to AI research to ensure the UK remains world-leading in the field and to drive improvements in growth, productively and public services.

Despite the recent years of culture wars and the ongoing criticism universities receive in the press, it is in our national interest that we move away from the frustratingly British habit of being disparaging about something we are really rather good at – higher education and research. After the recent turbulent years of government, colleagues across the sector will be looking to the new administration to bring forward policies which bring badly needed stability to the higher education sector, so we can plan for the future and make a significant contribution to economic growth. Across the sector, we are up for the challenge.