There has been a significant improvement in the financial position and sustainability
of research in the UK’s universities according to an independent review published
today, reporting to Research Councils UK and Universities UK. The review found a
positive impact of the fEC regime and recommends continuing on the present model,
while also recommending a range of technical improvements.
The review, chaired by Professor Alan Alexander FRSE, was announced in March
2008 and was set up to assess the impact of revised funding arrangements introduced
by the Research Councils in 2005. Under these arrangements the Research Councils
pay up to 80 per cent of the full economic costs of the research they fund. The
Review analysed data available from the Higher Education Statistics Agency, Research
Councils and Higher Education Funding Councils. A wide-ranging consultation with
stakeholders across the research and higher education sector was also carried out.
Professor Alexander said, "The review demonstrates that the principle of full
economic costing is well founded and that its objectives are, in general, being
met. We make a number of recommendations that are intended to improve the operation
of the regime and its capacity to contribute to sustaining the UK research base."
Welcoming the review Professor Ian Diamond, Chair of the RCUK Executive Group
said, "A decade of sustained investment has given the UK a world leading research
base. Alan Alexander's review gives us reassurance that the full economic cost regime
is ensuring that this national asset is managed sustainably and will continue to
deliver for the nation into the future."
Professor Rick Trainor, President of UUK, said, "Full economic costing and the
move to a more financially sustainable research base in UK HE has been a major undertaking,
with high levels of commitment by funders and the sector. This Review demonstrates
that this is having a positive impact and is ensuring that we are in a position
to sustain a world leading research base. This will be crucial to sustain a knowledge
based economy and driving the country’s future prosperity."
Download the review
here
.
Download the annexes
here
.
Download the executive summary
here
.
Notes
Contact
Chloë Somers
RCUK Press Officer
Tel: 01793 444592
Background
In May 2008 RCUK announced that it would commission a review of the implementation
of full economic costs (fEC) for funding university research. The review aims to
ensure that the change to full economic costs has put universities on track for
delivering long term financial sustainability in research. The Secretariat is provided
jointly by both RCUK and Universities UK, with additional support from the Funding
Councils for Higher Education in England, Scotland, Wales and Northern Ireland,
DIUS and Cancer Research UK. The Review Panel is chaired by Professor Alan Alexander,
Commissioner on the Accounts Commission for Scotland and a member of Council of
the Economic and Social Research Council.
The reform of dual support was announced by the Government in the Science and
Innovation Framework 2004-2014. The Government sought to move university research
to a sustainable basis, and indicated that Research Councils would fund 80 per cent
of the full economic costs of research from April 2006, with the intention to move
to paying close to 100 per cent of the full economic costs of projects by the beginning
of the next decade, taking full account of capital funding streams. Other sponsors
of research, including business and Government Departments were also expected to
meet the full costs of research they commissioned, depending on the extent to which
the research provided a public good.
A review after two years of implementation of fEC was planned as early as 2005.
The review will establish how well fEC is meeting its objectives and to assess its
impact on research institutions and users. It will enable RCUK and UUK to provide
Government with the data needed to judge the achievements of the science and innovation
investment framework.
About Research Councils UK
The seven Research Councils are independent non-departmental public bodies, funded
by the Science and Research Budget through the Department of Innovation, Universities
and Skills (DIUS). They are incorporated by Royal Charter and together manage a
research budget of around £3 billion a year.
Research Councils UK (RCUK) is the partnership between the UK's seven Research
Councils. Through RCUK, the Research Councils work together to champion the research,
training and innovation they support.
The seven UK Research Councils are:
- Arts & Humanities Research Council (AHRC);
- Biotechnology & Biological Sciences Research Council (BBSRC);
- Economic & Social Research Council (ESRC);
- Engineering & Physical Sciences Research Council (EPSRC);
- Medical Research Council (MRC);
- Natural Environment Research Council (NERC);
- Science & Technology Facilities Council (STFC).
About Universities UK (UUK)
Universities UK is the major representative body and membership organisation
for the higher education sector. It represents the UK's universities and some higher
education colleges. Its 133 members are the executive heads of these institutions.
Universities UK works closely with policy makers and key education stakeholders
to advance the interests of universities and to spread good practice throughout
the higher education sector. Founded in 1918 and formerly known as the Committee
for Vice-Chancellors and Principals (CVCP), Universities UK celebrated its 90th
anniversary in 2008.