University research must be protected

Pressures faced and actions needed

Universities are under significant financial pressure, stemming from short falls in both public and charitable funding provisions. To deliver their role in the R&D ecosystem effectively and maintain both tangible and intangible benefits to UK R&D, universities and university-affiliated research institutes must be supported to achieve a sustainable financial model across both their teaching and research activities. A holistic review of the funding mechanisms for university-led R&D, and universities more broadly, is urgently needed to increase ‘end-to-end’ coverage of the costs of research activity. Recent announcements by UKRI about improving  cost recovery for research grants is a welcome first step.

CaSE is concerned that decisions currently being made are by individual institutions lack oversight by the devolved or UK Governments of the impacts of these decisions in aggregate. A lack of strategic oversight could lead to serious unintended consequences such as a complete loss of expertise or knowledge in certain R&D disciplines or areas of the UK. As we set out in our briefing on universities, this knowledge and expertise, as well as the infrastructure that goes alongside it, is a crucial resource for businesses across the R&D sector and the wider economy. The Office for Students (OfS) has recently recognised this issue for teaching in universities.

Universities often act as a focal point and anchor for regional research institutions and clustering of expertise. In establishing a network of research organisations, universities help bring in funding to collaborative endeavours that individual businesses would otherwise be unable to access. Universities also have a vital role as a neutral arbitrator in supporting local businesses to collaborate rather than compete. If the retrenchment of universities is uneven across the regions of the UK, then this could leave some regions without this important focal point for economic activity.

What is CaSE doing?

On 14th March 2025 House of Commons Education Select Committee Chair Helen Hayes MP announced an evidence session examining funding issues in the higher education sector. We were pleased to hear that this session was to happen, and last week we wrote to Ms Hayes to emphasise the importance of considering research and development (R&D) as part of this examination.

In the letter, we offered some of the background evidence and context we have set out here about the crucial role of universities in the UK R&D system. We also re-iterated our recent asks of the UK Government to provide support and strategic oversight for the university sector.

In our recent spending review submission, CaSE called on the UK Government to provide short-term support for universities to encourage a more coordinated and strategic approach to prevent the loss of world-leading R&D knowledge and expertise during this period of funding issues. This support would allow the time and space to work together as an R&D sector, with the UK Government, to design an R&D system that is financially sustainable for the long-term.

CaSE has heard overwhelmingly from stakeholders within the R&D sector that universities are so intertwined in our research ecosystem that we cannot begin to predict the full cost of losing their R&D contribution at the regional and national level. However, just because we can’t imagine it, doesn’t mean it can’t come to pass. We will continue to be making the case for support for university research as we head towards the spending review in June.