Phil Willis: We must re-think the role of universities if we want to produce a world-class workforce

THE Lib Dem-Conservative coalition Government is mired in finding a financial solution to an economic crisis, not of their making, but with the potential to go spectacularly wrong.

The emergency Budget, followed by a draconian comprehensive settlement in the autumn, has the potential to plunge UK plc into a second or third wave of recession from which it will take decades to recover.

The overriding strategy appears simple – cut deeply and cut quickly. Rather like the 18th century surgeon removing the whole leg to because of a gangrenous foot – radical surgery was seen as the only option. As a result, George Osborne and Danny Alexander have embarked on a slash and burn approach to all things publically funded with the somewhat vain and unevidenced view that the economy will be saved and we will return to full prosperity.

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That the enormous fiscal deficit has to be addressed is without question but, rather than remove part of the problem and gamble on recovery, why not use the crisis as an opportunity to re-engineer our economy towards the future? To invest in "winners" was never a strength of government in the past but that is exactly what is required and that is exactly what our competitors are doing presently.

There is not a single area of proposed new economic growth that will not require the application of science, engineering and technology and, crucially, not a single area that can succeed without developing the highest levels of human capital, provided by our education system and particularly our universities. But only if it is the right capital, which is why we need to focus on the right areas.

To date this has been absent – rather we have seen yet another proposed re-organisation of our schools with the rapid expansion of academies and proposed cuts to our universities. This can only lead to a reduction of intellectual capital, not an increase. Without, in either case, a critical examination of our economy's needs – it appears that changing the chairs on the Titanic and removing a few to make more room is the answer.

The row that emerged from Vince Cable's universities speech recently centred yet again on funding the present model – this time with a graduate tax (which incidentally I support) missed the mark. The debate Cable was trying to initiate was far more important, asking: are our universities fit for purpose and what actually is that purpose?

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Anton Chekhov wrote: "The university brings out all abilities – including incapability". In the case of our higher education system, how true that is. Our universities pride themselves on their autonomy, fiercely guard their academic freedom and preen themselves rightly, on a research record that is second only to the US. However, on closer examination, we have arguably a sector that is unclear about its mission and remains one of the true bastions of restrictive practice that would make Bob Crow, general secretary of the RMT, or Arthur Scargill green with envy.

Rather than allow the sector to cut its cloth according to old priorities; devolve greater costs to students; or damage our world class research and development base – surely now is the time for a radical re-think about the role and function of our universities and how they could be re-engineered to provide a world-class workforce to deliver world-class goods and services to a global economy.

I can of course hear an army of vice-chancellors reaching for their pens to scribble "heresy" on their notepads so before making more enemies let me make the case.

The taxpayer now spends some 8bn on our universities, including generous support to students. Over the past decade, we have seen an expansion of student numbers to more than 300,000 a year aimed at meeting the inexplicable 50 per cent target for 18-30 year olds. Yet figures from the Higher Education Statistics Agency show that over 18,000 do not complete their first year and fewer than 80 per cent are awarded a degree at the end of their time at university.

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Part-time students, where the next wave of expansion is arguably coming from, fare worse – with 37 per cent of those under 30 failing to continue their programme of study. Not surprisingly, those finding most difficulty retaining students are the post-1992 universities formed from former polytechnics and colleges of education. Yet these levels of attrition are considered acceptable.

More worrying is the flawed belief that a university degree from any university will deliver greater employability. Many graduates now fill jobs that in the past would have gone to A-level entrants or even those with moderate GCSEs. Of the 300,000 graduates leaving university each year, there are only some 150,000 graduate jobs available with 10-15 per cent offering so called "graduate salaries".

It is, of course, right to say that graduates are still more employable than non-graduates but, given the huge rise in borrowing for individual students – estimated to be 30k plus – are we doing right by them as well as taxpayers and employers? If, as I believe, the answer is no, surely the time is right to at least challenge the present system which has grown like "topsy" since 1963 and the Robbins Report. Surely it is time to question why we need so many higher education institutions in the first place?

Why do we need a system whereby 159 separate organisations have their own governance structures, quality assurance systems and separate degree awarding bodies? Why when the taxpayer contributes such a large proportion of income should there not be greater levels of accountability

to what the nation wants from the sector?

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It may be uncomfortable to ask such heretical questions but they are exactly what every organisation, private or public is now having to address. Why not the most important organisations of all – those that generate ideas and knowledge for our collective future?

Baron Willis is the former MP for Harrogate and Knaresboorugh and was also chairman of the Innovation, Universities, Science and Skills Select Committee.

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