As a member of the committee which produced the report, I pay tribute to the chairmanship of the noble Lord, Lord Patel. It was always fair, enthusiastic and intellectually rigorous. It had a light touch but nevertheless a strong hand. It was a pleasure to serve under him and with others on the committee. I declare my interests as a visiting professor at the City University and a senator of the University of St Gallen.
I wish to make only one point today about what I believe was the thrust of the whole report: that if government policy on science research funding in universities is to be successful, it must focus on making the case for its long-term benefits. I say this because the Government are under tremendous pressure to focus on the short term, because of Covid; so are universities. Clearly, the short term is important but the real benefits of investing in science research are long term, leading to increased productivity and sustained growth. They are crucial to job creation and prosperity for our children and grandchildren.
That is now abundantly clear, with scientific research being the basis of new technology and new ways of advancing healthcare, tackling climate change and making things—just think of lithium, graphite, new vaccines and electronic cars. As the noble Lord, Lord Rees, mentioned, these are also examples of fundamental research, which will raise productivity in a future decade. The report recognises that UK universities are some of the best in the world, but even those which are one rank below the best contain departments which are world class. We also have a tie-up between university research institutes and business, which provides a unique opportunity.
The report makes a strong case for increased funding. The Government have stated that they want to reach 2.4% of GDP by 2027. That is a huge aspiration. Raising a percentage point of GDP takes enormous commitment by government. At present, we are 11th among the European countries.
The report was published in 2019. Since then, universities have faced much greater uncertainty. Foreign students are a key source of income. The pensions deficit is huge for universities. In recent years, foreign students have subsidised research. The key test in terms of the Government’s commitment to universities will come in the October Budget and the economic review. We should all feel sympathy for Rishi Sunak, but what is needed at present is some sort of medium-term financial plan in the context of a long-running commitment.
Only on that basis will universities feel that they can play a real part in contributing to future prosperity and jobs.
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