Universities have always been about training people for jobs, long before growth was seen as a central concern of Governments. Universities are indeed central to growth, productivity and levelling up. Without them, we would not have the levels of innovation and wealth that we do, or the genuinely improved opportunities—although they are not as great as they might be—for our young people.
I will use my short time in this debate to utter some words of warning and concern about our enthusiastic embrace of universities as engines of growth. There is a real danger, not just in this country but throughout the world, that a simplified understanding of this relationship and of what it means for government policy is a genuine threat to university excellence. It leads Governments down a path which does not deliver what they hope it will and leads to some reactions that we might wish to avoid.
Especially once the wonderful years straight after the Second World War came to an end and productivity suddenly started to be problematic—rather than something that just seemed to be happening and growing right, left and centre—Governments, intellectuals, academics and politicians cast around for some way of turbocharging growth. All over the world, they came to the conclusion that education was the answer—the more people we educated for longer and the more graduates we had, the more the economy would grow. It is true, I repeat, that without a highly qualified and well-educated population you cannot have a modern and innovative economy. But what has also happened is that we have all been rather disappointed: all over the world, there has been a huge increase and expansion in graduate numbers, but somehow growth has remained anaemic and productivity is not going in the directions we want.
All over the world, as the university sector gets larger and larger, resource per student tends to go down, and there are also some really concerning results: degrees become barriers to entry and you cannot get a job that you used to be able to get without a degree unless you have one. We should be very aware of this danger because it is starting to have a real impact on the way that Governments deal with the university sector in ways that threaten its ability to deliver the innovation and the type of education that we all value.
Australia, for example, having failed with one set of very complicated differential fees, is now about to introduce another set, which will apparently be based on the future contributions to the economy of different degrees—so this is not just a British disease. It has been true here, in the United States and elsewhere that we have focused more and more on whether individuals earn a lot from a particular degree. This is being hard-baked into our regulatory and accountability regime. We should take a deep breath and ask whether this is sensible, any more than it was sensible to believe that you would guarantee an uptick in economic growth simply by increasing the number of students.
Individual salaries depend on a very large number of things. They depend, for example, on whether you go into an occupation like nursing, where your wage is set not by a market but by a Government. They depend on which institution you went to and on the sort of occupation you go into. They also depend—this comes to levelling up—on where you are. You will not earn as much if you study in the north-east and stay there as if you study in the south-east and stay there—although actually you might be as well off, given house prices. But as a tool for steering, regulating and changing the higher education system, the way we have doubled down on the idea that we must look at whether a degree delivers growth—and that, if it does, it will deliver salaries—is very concerning. As well as celebrating the role of universities, I hope we will pay careful attention to some of the unfortunate consequences of focusing too much on growth.
]]>As the noble Baroness, Lady Andrews, noted, we can easily get so focused on process that we do not notice that devolution has meant growing divergence. Devolution means that things have happened and I am not sure that we take enough note of this happening or build it into our relations between Governments.
No one will be surprised that an example I want to focus on is education, but I apologise for the fact that my examples will be English and Scottish, because those are the two systems that I know well. We have always had major differences in our school systems. That is not only entirely acceptable but, in theory, a source of strength, because we can look at what works in different systems and they are alike enough that one can draw some useful lessons. We do not always do that, but it is a real opportunity.
But we have to remember that the United Kingdom has a national economy. Different parts of it may have different strengths, but we have a mobile labour force and young people take it for granted that they will have the freedom to move easily around the entire UK. This starts to be relevant when we think about our professional, vocational and technical education systems. Sometimes you have to have differences—for example, legal education has to be different in Scotland—but there are areas in the older professions where we have either natural or government-mandated mechanisms to ensure adequate alignment. The Academy of Medical Royal Colleges is the membership body for 24 medical royal colleges and faculties across not only the United Kingdom but Ireland, and the Nursing and Midwifery Council is UK-wide. But, once you go beyond the traditional professions, there is a surprising lack of join-up.
Ours is a world with a growing number of licences to practise. In England, we are trying very hard to revitalise apprenticeships and we have the Institute for Apprenticeships and Technical Education. But there is no formal provision for IfATE or the Scottish Qualifications Authority to take note of each other’s standards. IfATE certainly has no resources explicitly to work with the SQA on aligning training expectations. Equally, the English Government are trying to develop a range of higher technical qualifications, but I do not know of any explicit attempts to take account of the much stronger provision in Scotland of higher national diplomas, over a wide range and with a lot of experience. There might be some informal discussions but there is nothing formal. This is something we should worry about.
The other example I will use briefly is higher education, where I must declare an interest as a professor at King’s College London. Here too we have a national system that we are not taking enough note of as things diverge. We have a national system of application to university in UCAS and a national body for student loans in the Student Loans Company. Again, the systems are diverging. That might be perfectly all right, but there is an assumption among all young people in all four of our countries that they can apply to national institutions—I think UCAS is an institution—and that they will be able to move around.
There is also the research economy, which is very relevant to our economic future because, if we do not maintain real research strength in this country, our future is genuinely grim. The UK Government recognise this by funding a large research budget, and specifically by running the research excellence framework: a four-country, UK-wide exercise that provides a periodic intensive review of the quality of research provision. It has certainly been a spur to action in universities and a major source of our international reputation as a very strong provider of higher education. It is run jointly by Research England, the Scottish Funding Council, the new Commission for Tertiary Education and Research in Wales, and the Department for the Economy in Northern Ireland. England uses it as a way to target money into high-achieving universities to ensure that a certain number have the strength to maintain an international research reputation. In England we have to target because we now have 416 registered providers of higher education compared with the, in my view, more reasonable numbers of 18 in Scotland and 11 in Wales.
Devolved Governments do not have to spend any of that money on research; it comes under the Barnett consequentials. Again, that is fine, but it is also true that divergence is increasing, which has—in quite a short term, let alone the long term—some real knock-on effects for movements of staff between universities within the United Kingdom and for the future of a joined-up national UK-wide university system.
My point is not that the London Government should take back control, but that we are not discussing those growing divergencies in any systematic way. I was therefore extremely concerned to learn that the UK Education Ministers Council met only once in 2023.
In conclusion, I echo the comments of my noble friend Lord Kinnoull, and ask the Minister if we can please have some more information on how those meetings are organised, and whether there is any systematic effort to make sure that the four Governments take note of and address divergencies that may be very fruitful, but which, when they impact on the economy of a single nation—the United Kingdom—need to be addressed consistently and in depth by all four Governments.
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