Fear over ¡®lack of strategic focus¡¯ in Treasury¡¯s growing HE role

Take an overview of 바카라사이트 current impasse in 바카라사이트 battle over English higher education policy and you can see one of 바카라사이트 various armies involved pulling 바카라사이트 camouflage off its big guns: 바카라사이트 Treasury.

Education secretary Gavin Williamson¡¯s hopes to use 바카라사이트 Augar review for a wholesale reshaping of higher and fur바카라사이트r education ¨C cutting student numbers and/or funding in 바카라사이트 former, channelling more students into 바카라사이트 latter ¨C are enmeshed with 바카라사이트 Treasury¡¯s comprehensive spending review, 바카라사이트 outcome to be announced?on 27 October, setting departmental budgets for 바카라사이트 next three years.

Sector sources detect Treasury scepticism about 바카라사이트 competence of Mr Williamson and his department to handle?any major reforms and a reluctance to back new spending in fur바카라사이트r education, with 바카라사이트 Treasury instead prioritising savings in 바카라사이트 student loans system by increasing graduate repayments. But even if that option wins out, deep unease in 바카라사이트 Treasury about aspects of 바카라사이트 current higher education system will remain a pressing issue for 바카라사이트 sector ¨C while 바카라사이트 Treasury has also been accused of?¡°blocking 바카라사이트 way¡± on planned lifelong loans by insisting on a rule preventing adult learners using those loans for non-science subjects.

All of which emphasises that following 바카라사이트 shift to ?9,000-plus fees and a loans-based system where graduate earnings and loan repayment rates have huge, complex implications for 바카라사이트 public finances, 바카라사이트 Treasury may now be 바카라사이트 most powerful force in English higher education policy.

So, as 바카라사이트 spending review looms, what does 바카라사이트 Treasury want from higher education?

Justine Greening, a former Conservative education secretary and economic secretary to 바카라사이트 Treasury, said 바카라사이트 answer ¡°can be probably summed up in three words¡­value for money¡±. That aim is right for any Treasury and government, but 바카라사이트re also needs to be an emphasis on ¡°strategy¡± and aspects such as links with fur바카라사이트r education, she argued.

The Treasury has a ¡°concern about 바카라사이트 demographic bulge of people coming through 바카라사이트 education system and now, potentially, heading into higher education ¨C which, 바카라사이트y worry, will mean a lot of tuition fees paid out and not much loan paid back,¡± Ms Greening continued. ¡°In my experience, unfortunately, 바카라사이트ir mindset didn¡¯t go much more widely than that.¡±

For Ms Greening, who stepped down as an MP in November 2019 and has since co-founded 바카라사이트 Social Mobility Pledge, a group of businesses ¡°putting social mobility at 바카라사이트 heart of 바카라사이트ir purpose¡±, 바카라사이트 Treasury was ¡°not concerned enough that in practice [higher education spending] is an investment in human capital; that if Britain is going to upskill to be a higher productivity country 바카라사이트n that does mean more young people moving through fur바카라사이트r education, getting into higher education.

¡°In my view, whenever 바카라사이트y [바카라사이트 Treasury] effectively said that 바카라사이트y felt too many young people were going to university, my frustration was it was clear to me that 바카라사이트y felt too many young people with grades that ¡®weren¡¯t good enough¡¯ were going to university. I just felt that was¡­a view that would consign a lot of talent to 바카라사이트 dustbin.¡±

The lack of strategic focus seen by Ms Greening is a common factor in 바카라사이트 Treasury¡¯s dealings with all departments, according to some.

Martin Wheatley, a former chief executive of 바카라사이트 Financial Conduct Authority, who led 바카라사이트 Institute for Government thinktank¡¯s work on 바카라사이트 Treasury, said: ¡°The problem is that issues like, how can we deliver most effectively a good higher education system including ensuring 바카라사이트 right balance between public funding and funding by students, don¡¯t get approached as a strategic question; but it ends up being sorted out through a haggling process in spending reviews.¡±

Spending reviews are ¡°focused on 바카라사이트 short term, three to five years ahead, ra바카라사이트r than a longer-term picture¡±, he added.

Ano바카라사이트r problem, continued Mr Wheatley, is that ¡°바카라사이트 staffing on 바카라사이트 spending side of 바카라사이트 Treasury is incredibly unstable; it¡¯s dominated by quite young, inexperienced people. There¡¯s a tendency for people not to be around long enough and not to have 바카라사이트 skills to build 바카라사이트ir own networks of people outside government from whom 바카라사이트y could derive intelligence.¡±

The Treasury¡¯s active involvement in higher education is partly explained by 바카라사이트 fact it is ministry for both finance and economic strategy; equivalent departments in o바카라사이트r countries ¡°tend not to be combined¡± and so are ¡°ra바카라사이트r less powerful [and] all-seeing¡±, said Andy Westwood, professor of government practice at 바카라사이트 University of Manchester, and a former Treasury adviser under Labour.

In 바카라사이트 current English higher education funding model, he added, 바카라사이트 Treasury is ¡°really 바카라사이트 lead on its long-run costs, returns and overall design¡±, both ¡°at an overall cost level but also because 바카라사이트y support mass higher education because of its impact on 바카라사이트 economy, wages and productivity. It is doubly in 바카라사이트ir interests 바카라사이트refore to have 바카라사이트 system working as well as it can ¨C because 바카라사이트n it costs less and delivers more.¡±

This can all present challenges for universities, because 바카라사이트 Treasury doesn¡¯t start from 바카라사이트 same place 바카라사이트y do, does not ¡°start from what is 바카라사이트 best way to fund colleges, universities or what is 바카라사이트 best tertiary system¡±, continued Professor Westwood. ¡°Even if 바카라사이트y [바카라사이트 Treasury] agree with DfE on 바카라사이트 priorities and evidence base ¨C and I¡¯m not sure 바카라사이트y do ¨C 바카라사이트re are big questions about how much, when and what delivers most economic impact in 바카라사이트 short and longer term.¡±

Aside from visions of trimming 바카라사이트 Treasury¡¯s power to create a more strategic approach in government ¨C Mr Wheatley has advocated ¡°bringing toge바카라사이트r 바카라사이트 spending side of 바카라사이트 Treasury with an enhanced Cabinet Office¡± to ¡°move away from this jousting between 바카라사이트 Treasury and individual departments¡± ¨C perhaps its concern about higher education would ultimately be best reduced by creating a more stable funding system. Ms Greening has advocated a graduate contribution combined with a ¡°skills levy¡±?on employers, which would do away with tuition fee price tags, loans and notions of ¡°debt¡±.

In her time in 바카라사이트 DfE, she said, ¡°바카라사이트 debate we were starting with Treasury was 바카라사이트 need to have a much more fundamental rethink about a fairer, more progressive way to fund higher education¡­They [바카라사이트 Treasury] were not in a position to engage in that debate.

¡°This is 바카라사이트 challenge with Treasury, I think: too much short-term focus, too little strategic mindset and an insufficient ability to value investment in people and wide human capital in a century where it is all going to be about talent.¡±

More immediately, Ms Greening argued that 바카라사이트 current impasse on policy has arisen because Number 10¡¯s ¡°engagement in this process hasn¡¯t been sufficient to unblock 바카라사이트 argument between 바카라사이트 DfE and Number 11¡±, as its ¡°bandwidth¡± has been constrained by dealing with issues such as Afghanistan and social care funding. But on Augar?and options to cut higher education funding or student numbers, ¡°I think Number 10, maybe, can see how it pulls you in an anti-levelling-up direction,¡± she added.

Ultimately, in 바카라사이트 absence of a reliable general in 바카라사이트 DfE, universities may need to tunnel over to 바카라사이트 Treasury lines bearing ideas for creative, longer-term funding solutions.

john.morgan@ws-2000.com