Denham sets new university challenge: to open up our towns and cities to new university provision

London, 02/03//GNN/ -- DEPARTMENT FOR INNOVATION, UNIVERSITIES AND SKILLS News Release issued by The Government News Network on 2 March 2008

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0001 hours Monday 3 Mar 2008

A consultation to open up opportunities for towns and cities to bid for new
university campuses and centres of higher education was announced today by
John Denham, Secretary of State for Innovation, Universities and Skills.

Since 2003 17 new higher education centres have been opened or have had funding
committed. The Government wants to accelerate the pace of development and
expects to have 20 more opened or agreed over the next six years, subject
to high quality bids. Filled to capacity, the new 20 centres could provide
study places for up to 10,000 students.

The Government's 'New University Challenge', published today, underlines the
importance of universities and Higher Education provision to the nation's
economic and social success.

The paper sets out various ways in which local higher education benefits
communities:

Unlocking the potential of towns and people:
widening participation and unlocking talent;
attracting, nurturing and retaining talent in an area;
contributing to social cohesion; and
underpinning population growth strategies.

Driving economic regeneration:
creating a highly skilled workforce, with relevant skills for the local
business community;
job creation;
stimulating entrepreneurship; and
engaging with business to solve problems and boost innovation and
competitiveness.

John Denham has today written to the Higher Education Funding Council for
England (HEFCE) to lead a consultation into expanding the programme.

John Denham said:

"Never have universities and colleges been more important to our country
both nationally in ensuring our success on the world stage and locally in
our towns and cities through the creation of jobs and new skills, driving
regeneration and enriching cultural life.

"I want to build on the successes of the last few years which have seen new
centres of higher education transforming local economies and the lives of
local people. We must learn from these success stories and act on the growing
evidence that locally based projects play a key role in helping local areas
and people realise their potential.

"Communities should have the chance to show they can make the most of the
power of higher education, to help unlock the talent of their local people
and help make them better off."

The Government wants to see more bids that successfully mobilise the support
of local people, businesses and funding bodies including local authorities
and Regional Development Agencies, all working with universities and colleges
to boost the number of new centres.

Government funding for the new centres will be allocated out of HEFCE's
strategic development fund. In this Comprehensive Spending Review period
there is =A3150 million set aside for this fund. In addition it is expected
that projects will attract funding from other sources.

Professor David Eastwood, Chief Executive of HEFCE, said:

"We warmly welcome this initiative which will significantly build on the
achievements of the funding council working with a wide range of partners
in delivering higher education to parts of the country where there has been
serious under-provision. Such developments can have a profound impact on
economic regeneration as well as transforming the lives of students with no
previous experience of higher education.

"It is very encouraging that the Government is prepared to support such an
ambitious programme. Through the consultation we will be in a much better
position to identify areas where the development of higher education
provision will have the greatest impact as well as continuing to support
existing developments."

Notes to editors:

1. 'A New "University Challenge"' was published today by the Department for
Innovation, Universities and Skills (DIUS) and can be found at www.dius.gov.uk

2. The consultation will be led by HEFCE. It will canvas the view of those
involved in regeneration, development and planning at a local level including
Regional Development Agencies, local authorities, business groups, education
partners and community groups. Examples of suggested criteria to be used
to assess future funding proposals are contained within the document and
could include:

Ability to deliver:
collaboration between universities, and between universities and further
education colleges;
strong, coherent support from local partners, ranging from small businesses
to regional development agencies, local authorities, and where appropriate
those holding European funds;
long term and sustainable planning; and
management capacity.

3. The four ways in which higher education provision is provided, supported
by universities, are outlined at Annex B of the announcement.. The Government
anticipates supporting new higher education centres which are based in,
or linked with, existing providers but offering new opportunities. However,
the creation of genuinely new universities has not been ruled out if a strong
case can be made.

4. New university campuses or other local higher education centres that
have received capital funding and additional student numbers since 2003
include: Barnsley; Cornwall; Cumbria; Folkestone; Hastings; Medway; Oldham;
Peterborough; Southend; Suffolk; Darlington. Projects HEFCE has recently
agreed and which may involve capital investment, and in some cases a small
number of additional student numbers, in the current academic year are:
Blackpool; Blackburn; Burnley; Everton; Grimsby; and North and South Devon.

5. Today's announcement follows the Secretary of State's annual grant letter to
HEFCE in January in which he said that offering better local access to higher
education in places where there is a shortage of supply was a priority. It
follows a major speech on Friday in which John Denham called for a wide
ranging debate on the shape and size of the higher education system if it is
to remain world class in the next 10 to 15 years. The text of John Denham's
speech can be found at www.dius.gov.uk

6. We estimate that there are some 5 million adults of working age who already
have a level three (A-level or equivalent) qualification but no experience
of HE. Many of these adults represent "latent demand" for higher education
- people who might well consider it, if it were available at a convenient
place and time, but not otherwise.

7. Lord Leitch's analysis shows even to be on the edge of the "premier league
for skills", the UK needs to reach 40% of the working population with degree
equivalent skills. We currently stand at 30%. Employers benefit from more
productive and healthy workforces. Highly skilled workers are quicker to
adapt to new tasks and technologies and are themselves a direct source of
innovation. A one percentage point increase in the proportion of the workforce
with a degree instead of just A-level or equivalent qualifications led to an
increase in productivity of 0.5%. The value that employers place on graduates
demonstrated by the financial returns for graduates is amongst the highest
in the developed world. Therefore, convenient and accessible higher education
is an important asset for a community in raising the skills of its people.

8. The higher education sector contributes around =A350 billion to the economy
and sustains over 600,000 jobs. Graduates have low unemployment, with 2.9%
for those holding HE-level qualifications being unemployed compared with 6.8%
for those without. Universities also generate jobs. For every extra job in
a university, it creates another one elsewhere in the economy. Students,
staff and other workers spend money on local goods and services and some
students choose to work part time. The university will also procure local
goods and services and employ local people directly.

9. John Denham will be visiting Universities at Medway, one of the university
campuses that has received capital funding and additional student numbers
since 2003, on the morning of Monday 3 March. There will be limited time for
media interviews. For more information contact the DIUS press office on 020
3300 8926.

Source: Department for Innovation, Universities and Skills

2008-03-02 08:08:35 0302174 PRNEWSWIRE

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