My Lords, I declare an interest as chairman of the Royal Veterinary College and, until recently, chancellor of Cranfield University. I was very pleased to be a member of the Science and Technology Committee working on this report and I thank the noble Lord, Lord Patel, for his excellent chairmanship. However, this report is almost ancient history; it was published over a year ago, and much has changed since the government response in October.
Research, development and innovation, building on the excellence of science in UK universities, has always been incredibly important, and is even more so now, when we need urgent solutions to serious problems—Covid, climate change, security and, most particularly, rebuilding our economy post Covid. The Government have recognised this in the R&D road map, as the noble Lord mentioned, with its commitment to public investment reaching £22 billion per year by 2024-25. But this would take it only to about 0.8% of GDP; the target of spending 2.4% of GDP by 2027 will need big changes to bring in institutional and business investment in research. I hope that the Minister can tell us how the Government intend to do this. The road map has high ambitions, which are much to be welcomed, but it is really still a series of asking absolutely the right questions without yet filling in the answers. We need to see the colour of the money, particularly in the spending review.
Universities are still experiencing many of the problems that we outlined in our report. University research is cross-subsidised from other sources, with a particular one being overseas students’ fees. It remains to be seen, as we will do very shortly, whether those students will turn up this year—or, indeed, possibly next.
As the noble Lord, Lord Patel, outlined, Brexit puts at risk not only access to European funding sources such as Horizon Europe. The Government have committed to meet any funding shortfalls, but Horizon Europe is as vital for open and free collaborations with the brightest and best across Europe as it is about the money. The Government must land an association agreement with Horizon Europe. The changes that the Government have offered to the visa system for researchers still leave visas as a potential barrier, due to their high cost.
I hope upon hope that there is one silver lining in Covid—that it has killed Augar. I mean the report, not the man; at least, I think I mean the report not the man but, when he gave evidence to the Committee, I felt decidedly homicidal towards him. Funding further education properly is important for our economic future; the last thing that hard-hit universities need right now is for the funding of further education to face a reduction in student fees. Can the Minister assure us that this frankly bonkers idea is now officially dead?
I turn to the dual funding system, which must be preserved, with a reversal of the quality-related funding stagnation of the last 10 years that the noble Lord, Lord Patel, talked about. This is particularly important, not only because of the funding levels but because dual funding gives universities important flexibility in creating research collaborations and developing research infrastructure. That ability should not be eroded.
Lastly, we must find ways of ensuring that the fruits of UK university and other research benefit the UK. All too often, as was shown by a previous report from the Science and Technology Committee, innovations researched and developed in the UK are snapped up and grown up by US investors and leave these shores. This is one of the things that we ought to learn about from the US. Can we not import that, rather than chlorine-washed chicken?
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