Autonomy will make universities more competitive

Autonomy: the first priority, says Professor Trainor

In a speech to university vice-chancellors and the Secretary of State for Innovation, Universities and Skills, at the Universities UK annual meeting in Leicester last week Trainor said the first priority should be autonomy.

“In order to compete effectively at home and abroad, universities must be able to control their policies and resources. Without such autonomy for universities we cannot play our full part in realising the government’s, and the country’s, objectives.”

In particular, universities to see more progress in reducing the burden of regulation, said Trainor. “Universities are not part of the public sector and should not be treated as if they are.”

Inevitably, Trainor argued also that the financial health of the sector requires an increase in public funding for universities, and in particular in capital funding for teaching.

UK universities are well placed to exploit their potential, attracting a higher proportion of international students than any major competitor; we punch well above our weight in measures of research impact; and our graduation rates are among the best in the world,” said Trainor.

“Why are we able to do this? It seems to me there are two basic reasons. The first is that UK higher education has found a dynamic balance between cohesion and diversity. Our universities contribute in differing proportions and with a healthy variety of approaches to a shared core of activities: teaching and learning, research and knowledge transfer, and widening participation and other forms of social engagement.

Universities transforming themselves

This balance within the system contributes to the second basic reason for the success of UK higher education, claimed Trainor. “British universities […] are transforming themselves organically to meet both domestic and international drivers of change.”

For example the sector has made and continues to make great progress in ethnic, age and gender diversity among students. Likewise in recent years there has been an explosion in mutually profitable interactions between universities and the private sector. Also, British universities are engaged in a massive overhaul of their pay and reward structures.

While the central aims of the UK's universities overlap very substantially with the government's objectives relating to higher education, there are divergences of opinion and Universities UK intends to make its position known.

Get the finances right

The first priority is to become financially sound, independent institutions, Trainor told delegates. “We must ensure that universities have the freedom to respond to challenges through managerial and financial autonomy.”  

Without such autonomy universities cannot play their full part in realising the Government's, and the country's, objectives. “To develop an entrepreneurial approach and create a culture in which this thrives – so that our universities can compete effectively at home and abroad – we need to have control of our policies and resources. In other words, we need to have […] universities with unfettered freedom to compete.”

“In particular universities need accelerated progress in reducing the burden of regulation. In my native country, the US, even in state universities there is nothing like the degree of intervention in institutional management and in the working life of academics that we still experience in this country, noted Trainor.  

“Universities need relief from the double burden of official and professional regulation.  Now this is not a plea for a quiet life for university managers or academic leaders, who are working hard to improve management and governance. Rather, it is a call for recognition that we need more of the managerial autonomy of private sector entrepreneurs if we are to be efficient and effective.

“Universities are not part of the public sector and should not be treated as if they are. Also, the very considerable expertise of universities needs to be fed into government policy decisions, and not merely into their implementation.

Of great importance also in achieving effective autonomy is securing a diverse and financially sustainable resource base.

What will such financial health look like?

Diversify the income streams

It will mean, said Trainor, “An increasing diversification of income sources.” There is much still to be done to build up capacity and clientele, in all parts of the sector; so that UK universities compete with fundraisers in other UK sectors as well as with the legendary fundraisers in American universities.

“While changes to the relevant UK tax laws in the past few years have been very helpful, further progress is necessary, notably in easing the giving of legacies, a large and rising revenue stream for our American competitors.”

Universities also need to be given the opportunity to earn more both from the commercialisation of research and teaching, and from the recruitment of international students. “In pursuing these objectives, tax, immigration and other regulatory regimes need to be more encouraging,” said Trainor.

Financial health also requires adequacy and stability in public funding for universities. According to Trainor, this issue requires urgent attention. “We are suffering from the long-term erosion of funding for teaching and the long-term running down of our physical infrastructure.  Increased investment in research infrastructure in recent years has halved the maintenance backlog, but it remains formidable.”

“Throughout the UK, there are many higher education issues to be confronted during the next two years.  But said Trainor, “Everyone now understands how central universities are to the future of the UK: our shared task is to find the most effective way to turn that potential into reality.”

This is an edited version of a speech by Professor Rick Trainor, President of Universities UK, at the Annual Meeting in Leicester.