Department for Innovation, Universities and Skills
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Denham sets new university challenge: to open up our towns and cities to new university provision
A consultation to open up opportunities for towns and cities to bid for new university campuses and centres of higher education was announced today by John Denham, Secretary of State for Innovation, Universities and Skills.
Since 2003 17 new higher education centres have been opened or have had funding committed. The Government wants to accelerate the pace of development and expects to have 20 more opened or agreed over the next six years, subject to high quality bids. Filled to capacity, the new 20 centres could provide study places for up to 10,000 students.
The Government's 'New University Challenge', published today, underlines the importance of universities and Higher Education provision to the nation's economic and social success.
The paper sets out various ways in which local higher education benefits communities:
Unlocking the potential of towns and people:
widening
participation and unlocking talent;
attracting, nurturing and
retaining talent in an area;
contributing to social cohesion;
and
underpinning population growth strategies.
Driving economic regeneration:
creating a highly skilled
workforce, with relevant skills for the local business
community;
job creation;
stimulating entrepreneurship;
and
engaging with business to solve problems and boost
innovation and competitiveness.
John Denham has today written to the Higher Education Funding Council for England (HEFCE) to lead a consultation into expanding the programme.
John Denham said:
"Never have universities and colleges been more important to our country both nationally in ensuring our success on the world stage and locally in our towns and cities through the creation of jobs and new skills, driving regeneration and enriching cultural life.
"I want to build on the successes of the last few years which have seen new centres of higher education transforming local economies and the lives of local people. We must learn from these success stories and act on the growing evidence that locally based projects play a key role in helping local areas and people realise their potential.
"Communities should have the chance to show they can make the most of the power of higher education, to help unlock the talent of their local people and help make them better off."
The Government wants to see more bids that successfully mobilise the support of local people, businesses and funding bodies including local authorities and Regional Development Agencies, all working with universities and colleges to boost the number of new centres.
Government funding for the new centres will be allocated out of HEFCE's strategic development fund. In this Comprehensive Spending Review period there is £150 million set aside for this fund. In addition it is expected that projects will attract funding from other sources.
Professor David Eastwood, Chief Executive of HEFCE, said:
"We warmly welcome this initiative which will significantly build on the achievements of the funding council working with a wide range of partners in delivering higher education to parts of the country where there has been serious under-provision. Such developments can have a profound impact on economic regeneration as well as transforming the lives of students with no previous experience of higher education.
"It is very encouraging that the Government is prepared to support such an ambitious programme. Through the consultation we will be in a much better position to identify areas where the development of higher education provision will have the greatest impact as well as continuing to support existing developments."
Notes to editors:
1. 'A New "University Challenge"' was published today by the Department for Innovation, Universities and Skills (DIUS) and can be found at http://www.dius.gov.uk
2. The consultation will be led by HEFCE. It will canvas the view of those involved in regeneration, development and planning at a local level including Regional Development Agencies, local authorities, business groups, education partners and community groups. Examples of suggested criteria to be used to assess future funding proposals are contained within the document and could include:
Unlocking the potential of towns and people:
widening
participation and unlocking talent;
attracting, nurturing and
retaining talent in an area;
contributing to social cohesion;
and
underpinning population growth strategies.
Driving economic regeneration:
creating a highly skilled
workforce, with relevant skills for the local business
community;
job creation;
stimulating entrepreneurship;
and
engaging with business to solve problems and boost
innovation and competitiveness.
Ability to deliver:
collaboration between universities, and
between universities and further education colleges;
strong,
coherent support from local partners, ranging from small
businesses to regional development agencies, local authorities,
and where appropriate those holding European funds;
long term
and sustainable planning; and
management capacity.
3. The four ways in which higher education provision is provided, supported by universities, are outlined at Annex B of the announcement.. The Government anticipates supporting new higher education centres which are based in, or linked with, existing providers but offering new opportunities. However, the creation of genuinely new universities has not been ruled out if a strong case can be made.
4. New university campuses or other local higher education centres that have received capital funding and additional student numbers since 2003 include: Barnsley; Cornwall; Cumbria; Folkestone; Hastings; Medway; Oldham; Peterborough; Southend; Suffolk; Darlington. Projects HEFCE has recently agreed and which may involve capital investment, and in some cases a small number of additional student numbers, in the current academic year are: Blackpool; Blackburn; Burnley; Everton; Grimsby; and North and South Devon.
5. Today's announcement follows the Secretary of State's annual grant letter to HEFCE in January in which he said that offering better local access to higher education in places where there is a shortage of supply was a priority. It follows a major speech on Friday in which John Denham called for a wide ranging debate on the shape and size of the higher education system if it is to remain world class in the next 10 to 15 years. The text of John Denham's speech can be found at http://www.dius.gov.uk
6. We estimate that there are some 5 million adults of working age who already have a level three (A-level or equivalent) qualification but no experience of HE. Many of these adults represent "latent demand" for higher education - people who might well consider it, if it were available at a convenient place and time, but not otherwise.
7. Lord Leitch's analysis shows even to be on the edge of the "premier league for skills", the UK needs to reach 40% of the working population with degree equivalent skills. We currently stand at 30%. Employers benefit from more productive and healthy workforces. Highly skilled workers are quicker to adapt to new tasks and technologies and are themselves a direct source of innovation. A one percentage point increase in the proportion of the workforce with a degree instead of just A-level or equivalent qualifications led to an increase in productivity of 0.5%. The value that employers place on graduates demonstrated by the financial returns for graduates is amongst the highest in the developed world. Therefore, convenient and accessible higher education is an important asset for a community in raising the skills of its people.
8. The higher education sector contributes around £50 billion to the economy and sustains over 600,000 jobs. Graduates have low unemployment, with 2.9% for those holding HE-level qualifications being unemployed compared with 6.8% for those without. Universities also generate jobs. For every extra job in a university, it creates another one elsewhere in the economy. Students, staff and other workers spend money on local goods and services and some students choose to work part time. The university will also procure local goods and services and employ local people directly.
9. John Denham will be visiting Universities at Medway, one of the university campuses that has received capital funding and additional student numbers since 2003, on the morning of Monday 3 March. There will be limited time for media interviews. For more information contact the DIUS press office on 020 3300 8926.
