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PART Issues and Perspectives ofHigher Education

Universities are independent corporate bodies, and are autonomous with regard to their administration and management. On the other hand, the central government provides universities with grants through the Universities Funding Council. Most university expenditure is funded by these grants. The Secretary of State for Education and' Science appoints the members of the Council, and determines the total sum of grants to universities as a whole. He gives no instruction as to the specific grants to individual institutions. In addition to these government grants, sources of income of universities include tuition fees research grants from government departments, and donations.

While universities charge tuition fees and boarding fees (for students living in university halls of residence), no admission fees or fees for equipment are charged. As mentioned above, since tuition fees are included in student grants. Students themselves share no substantial financial burdens for tuition fees. It should be added that as tuition fees are determined in accordance with the guidelines set forth by the Government, the amount of tuition is almost the same for all universities. It does not vary among different faculties or departments.

In the United Kingdom reforms in higher education have been under way with a view to meeting economic and social challenges. As an integral part of these reforms a review was made of the university grants system. Traditionally, government grants to universities had been made through the University Grants Committee until April 1989 when the Committee was replaced by the Universities Funding Council under the Education Reform Act of 1988. This change was designed to meet the need to ensure more efficient allocation of university grants, enough to facilitate such educational and research programs at universities as would meet the economic and social demands of the times. It was also intended to respond to the criticism that the University Grants Committee was composed mainly of university people. The Act specified that the Secretary of State appoint the members of the Universities Funding Council, taking account of a proper balance between academic people and representatives of industry.

The Government has made clear its policy that university grants are not an unconditional right of universities, but are public funds paid on the basis of contracts. Universities have been called upon to show financial accountability relevant to the grants made to them. In addition, the Government has encouraged universities to make more use of private funds.

Further, universities are now subject to a definite evaluation of their programs. In 1986 the University Grants Committee carried out its first evaluation of university research activities, and in 1989 the Universities Funding Council made an evaluation of universities and published its results. In this evaluation, the Council made a program evaluation of the level of research activities at all universities in each of 37 subjects. The evaluation was made in terms of five grades for respective subjects. (No overall evaluation was made of each university as a whole.) A ranking list of universities for each subject was published.

For the funding of polytechnics and colleges of higher education, a Polytechnics and Colleges Funding Council has been created to make state funds available to these institutions in accordance with the same policy as that applied to universities.