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Government measures to reduce costs faced by universities

The Government has proposed measures to reduce the costs universities face, helping them to focus resources on world-class teaching and research.

Delivering the Politeia Winter Address, Universities and Science Minister David Willetts announced an agreement with HM Treasury, which will drive efficiency by encouraging closer collaboration.

Mr Willetts, said: “We are asking universities to become more efficient, and we are helping them to do so.

“Just this week, I have written to Eric Thomas at Universities UK to give him the good news about the Treasury’s agreement to exempt shared services from VAT.

“The Treasury has confirmed that, under the principle of direct effect, universities can immediately benefit from this decision, and I know it will be welcomed by institutions.”

The Minister also responded to calls from universities about the cost of data collection.

He said: “I have discussed the issue of data collection with people from across the HE sector, and there is a widespread desire to go back to first principles.

“We need to establish precisely what information we already collect, what we actually need and why, and to reconcile the two, so that collection is useful and proportionate for all institutions concerned.

“I’m pleased that the information Landscape project, launched last month, and with input from all parts of the sector, is seeking answers to these essential questions.

“The project website goes live tomorrow. Participants will be identifying any ‘quick wins’ for easing the burden on universities, as well as publishing a road map for implementing a simpler model overall.”

He went on to announce a review of philanthropy in the higher education sector, lead by HEFCE, and suggesting ways for universities to successfully establish fundraising as part of their culture.

The importance of international students was also noted, as Mr Willetts relayed the findings of the Tracking International Graduate Outcomes research, published today.

He noted that four fifths of international students feel their UK degree was worth the financial investment, and that they achieve markedly higher average salaries in their home countries.

This was posted in Bdaily's Members' News section by Tom Keighley .