Research Councils UK (RCUK) is to 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 review will be conducted in co-operation with Universities UK (UUK), and
the Funding Councils for Higher Education in England, Scotland, Wales and Northern
Ireland. It will be 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.
Speaking on behalf of Research Councils UK, Professor Ian Diamond said "It is
two years since the introduction of full economic costs, and it is timely for us
to establish how well it is meeting its objectives and its impact on research institutions
and users. The review will enable us to provide the Government with the data it
needs to judge the achievements of the science and innovation investment framework."
The review will seek input from a wide range of stakeholder groups, and report
to RCUK by the end of 2008. The issues that the review is expected to address are:
-
the extent to which the policy objectives relating to sustainability of the
science base have been delivered by the introduction of funding based on fEC;
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how the additional funding resulting from both fEC and associated changes
have been utilised by universities;
-
the operation of fEC arrangements in HEIs, Research Councils and other funders;
-
the impact of fEC on interactions with key stakeholders, notably industry,
government departments and charities.
Professor Alexander said, "The UK research base provides the intellectual cornerstone
of the economy and public policy and services. I’m delighted to be able to play
a part in ensuring that its current strength is sustained through sound financial
investment."
The review will draw on statistical data produced by the Funding Councils for
the Research Funders Forum and on the recent survey on the impact of fEC by UUK.
It will also be informed by the Research Councils’ Funding Assurance Programme which
is assessing the effectiveness with which HEIs have been operating fEC arrangements.
- ends -
About the Review
The Review's terms of reference are:
- To review the impact of the revised funding arrangements for research on
the sustainability of research in Higher Education Institutions;
- To advise on changes that would enhance the delivery of sustainability;
- To consider, and propose if necessary, changes in the operation of full
economic costs in the funding of research;
- To report to the Research Councils UK Executive Group and Universities UK
by December 2008.
Notes
Professor Alan Alexander, MA, FRSE.
Professor Alexander lectured in Political Science in Canada from 1966 to 1971 and
in Politics at Reading University from 1971 to 1987. He then moved to Strathclyde
Business School at the University of Strathclyde where he was Professor of Management
in Local Government from 1987 to 1993 and Professor of Local and Public management
from1993 to 2000. He is now Emeritus Professor at Strathclyde and a Visiting Professor
in the Edinburgh University Management School.
He held his first public appointment as a Board Member of the Housing Corporation
from 1977 until 1980. In the 1970s and 1980s he also sat on Boards on a voluntary
basis including as Chairman of the Raglan Housing Association and a Board member
of the Paddington Churches Housing Association. In the latter part of the 90s, he
was a social care charity trustee, Chair of the Glasgow Regeneration Fund and a
trustee of WaterAid. In 1999, Alan became the Chairman of West of Scotland Water
and from 2002 until 2006 was Chair of Scottish Water. He is at present a Commissioner
on the Accounts Commission for Scotland, Chair of Postwatch Scotland, a Member of
the Economic and Social Research Council and Non-Executive Chair of Distance Lab
Ltd.
About the Research Councils
The seven Research Councils are independent non-departmental public bodies, funded
by the Science Budget through the Department of Innovation, Universities and Skills
(DIUS). They are incorporated by Royal Charter and together manage a research budget
of over £2.8 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 and Technology Facilities Council (STFC).
About HEFCE
The Higher Education Funding Council for England (HEFCE) is responsible for distributing
around £7.1 billion a year in public funds to universities and colleges, to support
high quality education, research and related activities. HEFCE also has a leading
role in developing and implementing policy for higher education, based on research
and consultation.
About HEFCW
The Higher Education Funding Council for Wales (HEFCW) is an Assembly Government
Sponsored Body responsible for administering funds made available by the Welsh Assembly
Government in support of:
- education in higher education institutions (HEIs);
- research undertaken by HEIs; and
- higher education courses at further education institutions.
HEFCW is also responsible for accrediting providers of initial teaching training
for school teachers and commissioning research to improve the standards of teachers
and teacher training.
In addition to its funding responsibilities, HEFCW provides advice to the Welsh
Assembly Government on the funding needs, aspirations and concerns of the higher
education sector in Wales.
About SFC
The Scottish Further and Higher Education Funding Council (SFC) is a non-departmental
public body responsible to - but operating at arm's length from - the Scottish Government.
It distributes more than £1.6 billion of public funds annually to colleges and universities
on behalf of the Scottish Government for teaching and learning, research and other
activities in Scotland's colleges and universities. Established in 2005, the Council
provides a strategic overview of tertiary education in Scotland to help secure a
more coherent system of high-quality learning, teaching and research.
About NIHEC
The Northern Ireland Higher Education Council (NIHEC) is a non-statutory advisory
body. The Council's primary role is to advise the Department for Employment and
Learning on the planning and funding of Higher Education in Northern Ireland. The
advice provided spans the whole of higher education and not just higher education
in the universities.
About Universities UK
Universities UK is the essential voice of all the UK universities. We promote
and support their work and provide services to our members, the executive heads.
We work to deliver our mission by...
- Influencing stakeholders
- Providing informed policy analysis
- Co-ordinating sector agencies
- Providing member exclusive services
- Enhancing our own operational efficiency and effectivenes
Contact
Julia Short
RCUK Media Officer, Tel 01793 444435