Category: Place

  • It’s up to universities to make the industrial strategy a success

    It’s up to universities to make the industrial strategy a success

    The industrial strategy is not only an economic document it is also a roadmap for how the country will be governed.

    At its heart is a simple premise. Places know what is best for people locally and power should be devolved to them. Not all powers, because some things like defence have to be coordinated at a national level, and certainly not lots of fiscal policy like taxation, but powers over things like spatial planning (where the government allows it), investment, and some parts of the R&D ecosystem.

    The ideal body for distributing these powers is the Mayoral Combined Authority (MCA). These are the collection of councils in one area, usually a city, that work together to achieve more than they could alone. The Liverpool City Region Combined Authority and the West Midlands Combined Authority are just two examples

    Process not an event

    In 1997 then Secretary of State for Wales Rob Davies called devolution “a process not an event”, and he was right. Powers are not spread evenly through the UK, London has quite a lot and a local town council has very few. And the propensity for government to operate through pots of money that local government bid for to do stuff is unusual by international comparisons. This level of financial control limits many places to being the delivery arm of government more so than independent decision makers in their own right.

    This patchwork approach also means higher education providers have a mixed relationship with the devolution story.

    Solely through an academic lens research intensive universities have done well out of (even if they do not like it) how centralised the UK is. The REF just isn’t interested in geography. It follows quality, impact, and environments wherever they may be. Previous research pots like the Regional Innovation Fund which apply a funding multiplier to places underserved by research funding are the exception not the norm.

    The industrial strategy is different in that it at least attempts some kinds of rebalancing in acknowledging that if the government funds the same things in the same places the same kinds of research outputs will be produced. The fact there is some money behind it is even better. As DK noted in his review of research in the industrial strategy:

    The £500m Local Innovation Partnerships Fund is intended to generate a further £1bn of additional investment and £700m of value to local economies, and there are wider plans to get academia and industry working together: a massive expansion in supercomputer resources (the AI research resource, inevitably) and a new Missions Accelerator programme supported by £500m of funding. And there’s the Sovereign AI Unit within government (that’s another £500m of industry investments) in “frontier AI”. On direct university allocation we get the welcome news that the Higher Education Innovation Fund (HEIF) is here to stay.

    The places that are located outside of major cities without large research portfolios have more reason to be sceptical about devolution. Deputy prime minister Angela Rayner has called for local leaders to “fill in the map” of devolution but this is easier said than done. Places have distinct histories, geographies, and can’t as easily be accommodated into MCAs as places like Greater Manchester.

    While there has been interest in towns from time to time, the Towns Fund provided some funding to some places on some research projects, they risk being left behind within a devolution system that prioritises larger conurbations.

    The universities problem

    Let’s take the government’s proposals at face value and assume it is going to implement the full version of the devolution agenda it is proposing. This would mean local government has more funding to buy land, freeports and investment zones will be streamlined to provide even more business incentives, the British Business Bank (among other funders) will release and coordinate capital aligned to regions and the eight industrial strategy priorities, a further £200m will be spent on further education in England, and a series of growth funds will run directly through mayors.There are more announcements to come on skills, local economic regulation and infrastructure.

    Universities are not losers in any of these measures but nor are they inevitably complementary to everything the governments wants to do. Former universities minister David Willetts, who had some reservations about the draft strategy, has softened his tone writing:

    Most of the key industries set out in that visual [the one explaining the industrial strategy priorities] are heavy users of higher education. Universities will play a crucial role in the strategy. One of the biggest risks to delivering it is the financial fragility of these core institutions. It is good to see them getting a vivid illustration as well – on page 73. But the Government has not yet taken the decisions needed to ensure they can thrive and continue to be such a national asset.

    This is the core problem. It is possible to imagine how industries may rely on universities but it is more difficult work out how universities, specifically, can deploy their capacity in the most effective ways. Universities cannot expect government money for everything they do but it is also true that if they fall over the industrial strategy will fall with them.

    Philosophically, the industrial strategy neither supports enormous state intervention nor is it a hands off document of supply-side reform. It sees the state as an enabling force which can reduce risks to business, catalyse investment, and reconfigure the public sector. The industrial strategy does not tell universities what to do, or even what they might do in great detail, because that is not what it is designed to do. It gives an approach and it is for universities to choose whether and how they follow it.

    Adapt or perish

    This suggests a significant period of adaptation for universities. If more investment and political attention is flowing through their places then being involved in their places becomes significantly more important. Fundamentally, the industrial strategy is not an instruction manual but it is a guide to the things that the government will and will not fund.

    There are lots of devolved things that universities would generally find unpalatable like top-slicing QR funds to MCAs. There are lots of things that universities could do and are doing to set an example which might one day be backed up by legislation. Organising regional bodies to coordinate the provision of education to meet local labour market needs. Forming joint research programmes and investment vehicles to form one front door for research in their area. Using their own research capacity to interrogate the best forms of devolution and devolved structures. And, perhaps most importantly, being embedded in the important but unglamorous business of transport and spatial planning.

    The bigger mental shift is that the industrial strategy has two core centres of control. Its eight priority industries and regions and clusters within them. The challenge for universities, if they want to see sustained government support for their work, is to answer how what they do supports those two agendas. This is not a PR exercise but a careful interrogation of the limits and approaches of universities in their places and within those core industries.

    In some places this might mean tweaking existing work, in others it might mean new partners or new projects, and in some it might mean a more fundamental reimagining of the shape of the education sector in a region. Given the perilous state of university finances it is the institutions that look like they have solutions that will do well in the era of uncertainty.

    The industrial strategy does not leave universities behind, but it might. The opportunity is for universities to shape the settlement they want through being proactive in shaping their regions. This is not about another civic strategy but about creating the governance apparatus to support economic growth. Anything short of this risks an economic agenda which is done to universities rather than with them.

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  • The widening access narrative must return to speaking about places

    The widening access narrative must return to speaking about places

    Widening access to higher education has experienced a precipitous fall from grace in the eyes of politicians over the last ten years – a fall that may have slowed slightly but as yet to stop under this government.

    This fall may have coincided with the shift away from place-based to institutional-focused approaches to the problem. The access and participation plan regime may have stopped widening participation slipping out of sight completely but as our latest report shows, they have done little to increase higher education participation for those from the poorest backgrounds, particularly in rural and coastal areas.

    Split geographies

    The report – Coast and country: access to higher education cold spots in England – looks at the data published annually by the Department of Education on participation in higher education by free school meal (FSM) backgrounds. There are things we know about what this data shows as outlined in previous reports I have written and more recent work such as that from the Sutton Trust – in particular that London does far better than everywhere else.

    In this report, though, we show exactly how much. The national higher education participation rate in 2022–23 for those from FSM backgrounds was 29 per cent. If you take out London, which has only 16 per cent of the population of England, it falls to 23 per cent. London is covering up a much more challenging situation in the rest of the country than we are prepared to admit.

    These challenges increase as areas get smaller. The report looks at the relationship between the size of an area and the FSM higher education participation rate. It drops steadily as population decreases from 43 per cent in big cities to 18 per cent in rural villages. Nor is the situation improving. The gap between London and the other 84 per cent of the population has increased 3 per cent from 2012–23 to 2022–23 and just under 3 per cent between predominantly urban areas and predominantly rural areas over the same period.

    Many coastal areas in England – especially seaside resorts – have well documented problems with poverty, unemployment and health inequalities and higher education participation can be added to that list. The higher education participation rate for those from FSM backgrounds coastal communities was 11 per cent lower than in inland areas in 2022–23 with in many areas less than one in five such young people going onto higher education. There is an overlap here between rural and coastal areas here with the South West especially including areas of lower higher education participation.

    It is often said that the differences in higher education participation described above are associated with attainment in schools. Increasing attainment was the priority where widening access work was concerned for the Office for Students for a number of years. In the report, we map GSCE attainment at the area level against FSM higher education participation – and the correlation is indeed strong.

    It is far weaker, though, in villages and coastal areas than the rest of the country. This suggest that in the places where the problems are the greatest, better GCSE results alone won’t be enough. In 2022–23, six of the ten areas with the lowest levels of higher education participation did not have a university campus within them. What provision exists also matters.

    We need new (old) stories

    If any progress in closing the gaps between regions described above is to be made then place must again become the central focus for widening access to higher education work – as it was when the last Labour government championed the issue so vigorously in the 2000s.

    The pendulum has swung too far since then toward what institutions themselves do. Consequently, that political link between widening access, opportunity and growth has been broken. It is possible that the government itself will swing the pendulum back to place, and some of the signs coming from the Office for Students in recent months have been promising.

    However, higher education providers themselves can take the initiative themselves here and look for new ways to form stronger partnerships – ones that take whatever replaces Uni Connect as the start, not the endpoint, of what regional collaboration means.

    While the sector’s financial challenges make competition for students more intensive than it has ever been – and thus collaboration in this area more difficult – the value of higher education itself is being questioned by young people more than it ever has been since participation increased rapidly in the 1990s. Fighting between each other for young people’s and their schools’ attention won’t convince those, especially from the poorest backgrounds, that higher education is worth it. But collaboration will.

    Collaboration won’t produce additional provision in rural and coastal areas, or the money to fund it. But unless we shift the story and the practice of widening access back to place, this additional provision will never come.

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