Written evidence submitted by Universities UK (FCR0022)
About us
Universities UK is the representative organisation for the UK’s universities. Founded in 1918, its mission is to be the voice for universities in the UK, providing high quality leadership and support to its members to promote a successful and diverse higher education sector. With 135 members and offices in London, Cardiff (Universities Wales) and Edinburgh (Universities Scotland), it promotes the strength and success of UK universities nationally and internationally.
Summary
1. Our universities are a British success story, world-renowned, internationally competitive and a major economic asset, generating annual output of £73bn for the British economy.
2. Leaving the European Union poses some major risks and challenges for the UK higher education system, in relation to the future recruitment of talented students and staff from across Europe and beyond, future access to invaluable EU networks and funding, and access to international outward opportunities for UK students and staff.
3. As Government looks to minimise the turbulence and maximise the opportunities associated with leaving the European Union, universities can play a central role in driving inclusive economic growth locally, regionally and nationally; improving productivity as part of a new industrial strategy; and strengthening our international trade and diplomatic relationships across Europe and the wider world.
4. However, achieving this outcome will be dependent on universities receiving the right support and investment from Government now, throughout any transitional period, and over the long-term post-Brexit.
5. UUK welcomes the guarantees made thus far by Government on research, structural funding and EU students starting in 2016/17 and 2017/18, but there are a number of further measures that Government can take to help universities maximise their contribution to the UK’s economy, regional development and global influence in the coming years. This includes a set of actions to cover a period of transition immediately after the UK leaves the EU.
6. The following measures, which could be taken by Government immediately, would help to address uncertainty and promote stability throughout a short transitional period as the UK exits the EU:
7. In addition, a phased transition with minimal barriers for EEA university staff and students is needed whilst significant reforms are made to create an immigration system which better recognises the importance of international talent.
8. Taking such action will be vital in order to avoid a potential ‘cliff-edge’ scenario, and allow enough time for the sector to plan for, and adapt to, any changes in circumstances.
Background
9. Brexit presents a substantial risk to the long-standing networks, relationships and collaborations established by UK universities with EU partners. These collaborations are fundamental to maintaining the world-leading status of UK science, research and the quality and outcomes of higher education.
10. Concerns for universities posed by the UK exiting the European Union include:
i. Increased barriers to recruiting talented European staff
ii. Damage to international research collaboration
iii. Increased barriers to recruiting European students
iv. Loss of funding for research and innovation
v. Reduced outward mobility opportunities for staff and students
11. The UK’s universities, research and science base have a vital contribution to make to a successful, dynamic, and internationally competitive post-Brexit United Kingdom. However, the ability of universities to play this role depends critically on government support and the implementation of certain transitional measures.
Priorities for Government to maximise the contribution of universities to a global and thriving UK
12. The Government should prioritise addressing the above issues in three stages:
a) Short-term transitional arrangements
b) Exit negotiations
c) Domestic policy change
13. This response largely focuses on the short-term transitional arrangements necessary to address current levels of uncertainty and to prevent any sort of ‘cliff-edge’ scenario in universities’ ability to attract and retain students and staff, and in researchers’ ability to collaborate with vital EU partners.
14. For the medium to longer-term, however, through the exit negotiations, the Government should also prioritise securing:
15. Finally, in addition to securing a positive outcome during exit negotiations, the UK’s exit from the EU represents an opportunity for Government to develop policy to leverage the UK’s unique strengths more effectively in order to achieve economic growth and international influence. The following domestic policy change is necessary to ensure that British universities can thrive outside the European Union and deliver maximum positive economic and social impact in communities across the UK:
Universities and transitional arrangements
16. The following sections set out the justification for a set of transitional measures for universities which Government should take immediately in order to help address uncertainty and promote stability as the UK exits the EU.
Research collaboration
Overview
17. An increasing body of literature shows that research is an essential component of our innovative economy, underpinning the kind of long-term speculative inquiry that can lead to major breakthroughs and a step change in productivity and economic growth.
18. There is concern that, as the UK leaves the EU, there could be substantial damage to UK-international research collaboration, if the UK loses access to Horizon 2020, the EU’s current research and innovation framework programme (FP).
19. UUK has welcomed Government’s 2016 commitment to underwrite the payments of awards within Horizon 2020 (which universities and others bid for) while the UK remains a member of the EU, even when specific projects continue beyond Brexit. However, the current FP will run until 2020, and it is currently unclear what status UK-based researchers will have within the programme between the date of Brexit and the end of the EU programme. As long as the UK’s future participation in EU research programmes is uncertain, the UK risks becoming a less attractive collaboration partner.
20. Furthermore, because research is a long-term, cumulative process, even short-term disruption can significantly impact the quality and productivity of research in the future. This means that even if a solution to these problems was established in the long-term, failure to mitigate short-term impacts or a ‘cliff-edge’ could have enduring negative consequences.
What action Government should take
21. Universities UK therefore believes that it is in the national interest for the Government to signal that it will seek to secure continued UK participation in the Horizon 2020 research and innovation framework programme. Following this, through the formal exit negotiations, Government should then seek continued UK participation in the Horizon 2020 research and innovation programme to the end of current programme period (in 2020) even if this date is post-exit.
22. This would provide vital reassurance to researchers, both inside the UK and across Europe. In the absence of reassurance, there is a continued risk that the UK will be a less attractive and riskier research partner in the FPs.
23. For the longer-term, Government should also prioritise securing continued close collaboration with European partners to deliver excellent research, and we welcome the Prime Minister’s confirmation that the UK Government will “welcome agreement to continue to collaborate with our European partners on major science, research, and technology initiatives”.
Why is this important?
24. International collaboration drives the efficiency, excellence and impact of UK research. By working together, researchers can pool their expertise, infrastructure, data and resources to achieve more together than they could do alone. This enables them to harness diverse and often multi-disciplinary approaches to arrive at innovative solutions to complex problems. It also provides the scale necessary for the establishment and upkeep of large infrastructures.
25. International collaboration is a major feature of UK research[1]. In 2012, 46% of UK research involved partners overseas – higher than for the US, Japan and Canada – and, in 2013, the UK overtook the USA to rank first in the world by field-weighted citation impact (an indicator of research quality). More widely, evidence shows that there is a correlation between international co-authorship and field-weighted citation index.
26. Between 1996 and 2012, international collaborations accounted for almost all of the increase in UK scientific output and, over the past three decades, the FPs have been essential for enhancing international research collaboration in the UK:
27. The excellence and international reputation of UK research enables it to attract a high level of investment from abroad. In 2014/15, UK universities attracted £1.23 billion in research funding from foreign sources. Much of this investment came from EU government bodies, charities and industry. In 2014, 18.9% of the UK’s gross domestic expenditure on research and innovation came from abroad, and the FPs play a key role here. This compares to 4.5% in the USA and 5.2% in Germany.
28. The UK secures substantial amounts of funding via the Framework Programme. Since the start of Horizon 2020 in 2014, the UK as a whole has 4,793 ‘participations’ (more than any other country) and UK entities (e.g. universities, businesses) have coordinated 1,522 projects (20% of the total number of projects). The UK has already received €2.35bn of funding from participation in Horizon 2020 since the programme began – equal to 15.2% of all funding allocated (and second only to Germany). This level of success was also seen during Horizon 2020’s predecessor – over the full course of the Seventh Framework Programme (2007-13), the UK received €8.8bn in return for an investment of €5.4bn.
29. In considering the value to the UK of access to EU Framework Programmes, it is important to acknowledge the wide array of non-financial advantages through Horizon 2020 which could not be fully replicated outside of the FPs through a domestically-owned framework. In order for the UK to remain a globally competitive knowledge economy in the 21st century, the higher education sector cannot afford to lose these existing advantages. These advantages include:
EU nationals employed by UK universities
Overview
30. EU staff make a critical contribution to UK research and higher education. The ability of UK universities to recruit and retain the top minds in their fields regardless of where they come from is of fundamental importance to the excellence of the UK university system.
31. The current lack of certainty felt by many EU nationals working at universities across the UK about their future right to reside is the most pressing of all Brexit-related issues affecting universities. While it is encouraging that the Prime Minister has set out that one of the Government’s objectives going forward through the exit negotiations is to provide ‘certainty and clarity’, it is vital that the rights of EU citizens who are already living in the UK are guaranteed as soon as possible.
32. The impact of the uncertainty to date is difficult to quantify, but since the days following the result of the referendum, Vice Chancellors have continued to report to UUK the urgent need for reassurance to be provided by the Government for their staff from the EU. Further, in October 2016, the Universities and Colleges Employers Association (UCEA) surveyed 85 of their university members on the impact of Brexit on recruitment to date. The survey suggested that:
What action Government should take
33. It is vital that Government takes action to prevent any further growth in the disruption identified to date. UUK therefore urges the Government to confirm the rights to reside and work in the UK post-exit for EU nationals that are currently working in the university sector and their dependents. This should include confirmation of their access to public services.
34. The Government should take this step now, ahead of exit negotiations, to provide certainty for these hugely valued individuals.
Why is this important?
35. In 2014-15, EU nationals accounted for 16% of the total university academic workforce, though this is even higher within certain subject areas. For example, around one in four academics teaching in biological, mathematical or physical sciences had another EU nationality. A further 11,380 EU nationals were employed by universities in non-academic posts. This includes a number of roles critical to research and the student experience, such as lab technicians and language assistants, all of whom have invested in a future in the UK which now looks incredibly uncertain.
36. The UK’s academic workforce is both excellent quality and internationally-diverse. Firstly, on quality:
37. Secondly, on the international diversity of the UK academic workforce:
38. Different viewpoints and approaches to research are suggested to lead to better outcomes. Simultaneously, the quality of teaching and research at universities depends on being able to recruit staff members who are specialists in their field (no matter how niche), irrespective of nationality.
39. Academia is highly specialised and expertise in a specific field takes many years to acquire. It is crucial that government continues to take all possible steps to improve domestic capacity and address skills shortages in a number of areas. However, it is not feasible to expect that the UK’s position as a global research powerhouse can be safeguarded by upskilling the domestic workforce alone. In fact, higher education and research are intrinsically global in nature and must continue to be so post-Brexit.
40. World university rankings recognise that having an international staff body is a marker of being a world-leading university. Universities are increasingly judged on how international both their staff and student bodies are. In turn, this competitiveness drives economic growth and prosperity. According to Times Higher Education (THE), “the ability of a university to attract undergraduates, postgraduates and faculty from all over the planet is key to its success on the world stage”. The University of Oxford was ranked first in the world in the 2016/17 rankings, and the ‘international character’ of the university underpinned this position, with 35% of Oxford’s students and 40% of its faculty drawn from overseas.
41. The UK is also among the top destinations for Nobel prize winners who have studied abroad – as of autumn 2015, 38% of Nobel laureates who had studied at universities outside their home country had studied at an institution in the UK. International staff bring with them specialised skills, experience and expertise sought the world over, and complement and enhance the quality of teaching and the quality of UK research, science and innovation. Professor Sir Konstantin Novoselov and Professor Sir Andre Geim who co-discovered graphene, are prominent examples of international researchers who chose the UK, and whose skills and experience have benefited the UK economy. Even conservative estimates of graphene’s global market predict it will be worth more than £256m by 2024.
42. Further, evidence suggests that Marie Sklodowska-Curie (MSCA) fellows are also more successful in applying for ERC competitive grants, within which UK-based researchers have secured €720m since 2014 (21.5% of all ERC funding).
EU students
Overview
43. It is key to the future growth of the UK economy and the competitiveness of British universities that EU and non-EU students alike are able to continue to come to the UK to study without unnecessary bureaucratic burdens, and that the UK’s outstanding global reputation for providing high-quality education sought by students the world over is protected and enhanced.
44. Brexit has a number of implications for prospective EU students, including their eligibility for ‘home’ tuition fee status, their eligibility for financial support for their studies (in the forms of loans and grants), and for their immigration status.
45. UUK has welcomed Government’s guarantees to date that EU students starting in academic years 2016/17 and 2017/18 will qualify for home student tuition fee status and have access to student loans and grants protected for the duration of their course, and that this will even apply beyond the date the UK formally exits the EU.
46. However, the guarantee covering 2017/18 entrants itself was not provided by Government until 11 October 2016, while the deadline for applying to a number of university courses (including to Oxford and Cambridge) was 15 October 2016. Notably, EU student applications were then revealed to be down by 8%. There is a risk that, without urgent clarification on upcoming years, growing numbers of prospective students will be deterred from studying in the UK.
What action Government should take
47. Promoting the UK as a welcoming destination for European students, avoiding future administrative burdens, and providing clarity on the tuition fee status and loan eligibility of EU students before and after Brexit is a vital part of addressing this.
48. Government could mitigate risk here by confirming, as soon as possible, that EU students starting a course in 2018/19 and 2019/20, will continue to be eligible for home fee status, and be eligible for loans and grants on the current terms, and for this to apply for the duration of their course. This would allow universities time to plan for a phased transition towards any future system. This assurance is necessary as soon as possible given universities are beginning to communicate with prospective students for the 2018 intake in early 2017, and because many students/parents start to consider where to study abroad more than twelve months in advance of enrolment.
49. UUK also urges the Government to confirm the rights to reside and work in the UK post-exit for EU nationals that are currently studying in the university sector.
Why is this important?
50. There is significant concern across the UK university sector about the impact of the UK’s decision to leave the EU on perceptions of the attractiveness of the UK as a study destination, as well as the cultural and academic diversity of UK universities.
51. Initial evidence suggests that the UK’s attractiveness as a destination of study could have already been affected by the referendum vote:
52. The international diversity of the UK’s university campuses substantially enriches the educational experience of ‘home’ students through the mix of cultures and perspectives that students from other parts of the world bring. Over three-quarters of UK students surveyed by the Higher Education Policy Institute (HEPI) agreed that studying alongside international students was useful preparation for working in a global environment, and 76% said it gave them a better world view.
53. In 2014/15, there were 124,575 EU students enrolled in UK higher education providers, equal to 5.5% of the entire student population (up from 4.9% in 2007/08). However, at individual institutional level the proportion of EU students can be as high as 25%.
54. The proportion of EU students is higher at postgraduate level (where 8.6% of all students are EU nationals), and higher still in certain subject areas at postgraduate level. This includes mathematics (16.3%); engineering and technology (13.0%); creative arts and design (12.4%), and law (12.0%). At the more specific subject level, there are examples where demand from EU students can underpin course viability – for example, 28% of all aerospace engineering students are other EU nationals, as are 19% of physics postgraduates.
55. International students make an enormous contribution to UK higher education – academically, culturally and economically. The UK is the world’s second most popular destination for international (EU and non-EU) students, who spend money and create jobs, generating more than £9 billion and around 171,000 full-time equivalent jobs across the country. EU students alone generated an estimated £3.7 billion for the UK economy and 34,000 jobs across the country in 2011/12.
56. While the UK is currently second only to the USA as a destination for international students, there is growing competition, with many countries (including Canada, Australia, the US and China) adopting ambitious strategies for attracting more international students. Without investment in this area, the UK risks losing global market share in a growth industry.
57. International student recruitment can also support the UK’s soft power and influence worldwide. Through studying in the UK, international students establish networks and connections which support trade and business links, a positive perception of the UK and familiarity with UK brands globally.
58. Recent evidence suggests that a change in arrangements for tuition fees can affect EU student demand. Between 2007/08 and 2014/15, the total number of EU students enrolled in UK universities increased by 11%, from 112,150 to 124,575 students. However, this increase over seven years masks a more recent period of decline and stagnation in new entrants which coincided with the increase in undergraduate tuition fees in England in 2012/13. The number of new entrants in 2012/13 was 13% down on the previous year. Although there has been a slight recovery since, by 2014/15 the number of new entrants from the EU was 57,815, just 0.1% higher than seven years earlier. The impact of changing fee levels is therefore an important consideration in relation to Brexit as any change to EU students’ fee status may strongly impact student demand.
[1] International co-authorship is associated with 61% more impact than institutional co-authorship based on field-weighted citation impact (FWCI), and 41% more impact than national co-authorship.