Times Higher Education-QS World University Rankings 2008

09 October 2008

Responding to the publication of the Times Higher Education-QS World University Rankings 2008, Director General of the Russell Group, Dr Wendy Piatt said:

"Although we continue to have reservations about the use of many league tables and their accuracy, we are pleased that Russell Group universities continue to perform well against our major global competitors. This success is good news for the UK, as major research-intensive universities are vital to promoting economic prosperity and improving quality of life in this country.

"However, we are very concerned about our ability to sustain this level of success in the face of fierce global competition. The table reflects the growing strength of our major competitors - particularly the US institutions - who benefit from much higher levels of investment than UK universities. In terms of GDP, the US invests over twice as much as the UK on higher education, and their major research-intensive universities are amongst the largest beneficiaries. For example, the endowment fund of Harvard alone is greater than the total public funding for all universities in England in any given year.

“But increased competition doesn’t come solely from the US.  As a result of huge investment in higher education and science in recent years, China already looks set to overtake the UK very soon in terms of total research publications, and its universities have been steadily climbing up international league tables.  Funding for higher education is also increasing rapidly in India, the Middle East, Brazil and Australia.  Closer to home, France and Germany are both undertaking major programmes to pump millions of Euros into their leading research universities, with the aim of improving their international standing.

“Without increased investment there is a real danger that the UK’s success will not be sustained."

Notes to Editors

1. Based on OECD data, the UK’s annual expenditure on HE is lower than most other OECD countries, in terms of GDP, expenditure per student and as a proportion of total educational funding.

• Annual expenditure on higher education (for all services including research activity) per student shows that the UK is spending less than all of its main competitors – US, Australia, Germany and most Nordic countries.
• The UK spends approximately $11,484 (USD), while the US spends double at $22,476 (Australia spends $13,959).
• On core educational services alone the US spends more than double per student.
• Relative to GDP per capita, Australia spends roughly 25% more per student and the US still spends 50% more per student.
• The UK spends below the OECD average on higher education as a percentage of GDP. The US spend 2.9% ($320 billion), Korea 2.3% ($20 billion), Australia 1.6% ($9 billion), while the UK spends 1.1% ($18 billion).
• This is below the percentage spending by Belgium and Mexico on HE.  On public spending alone on HE as a proportion of GDP, the UK spends 0.8% ($13 billion), less in percentage terms than Iceland, Hungary and the Slovak Republic
• When all public expenditure (for example public subsidies for living costs) are factored in, however: UK spends 1.0 percent ($16 billion), close to the US at 1.3%, OECD average ($143 billion) and Australia at 1.1% ($6 billion).
• Average funding spent on HE as a proportion of all educational spending is 24%. The US spends 36.4% on higher education, the UK spends 19%.  
• The only country to give a lower proportion of educational funding to HEIs is Iceland.

2. Further examples of international investment in research-intensive universities:

• According to the DIUS report ‘International comparative performance of the UK research base’ (2008) China’s total publications have increased fourfold in the past decade and look set to overtake the UK in 2008.
• In 2007, the Indian government announced £7 billion investment over 5 years for higher education. The Prime Minister plans to create 40 new Institutes of Technology and Management.
• The new King Abdullah University of Science and Technology in Saudi Arabia is likely to be the richest university in the world outside USA.
• In Brazil, 10,000 PhDs and 30,000 Masters students will graduate in 2009 – a 10 fold increase in 20 years.
• In 2007, it was announced that the Australian government will provide £2.5 billion one-time payoff for universities.
• The recent higher education bill in France will pump billions into HE, increasing operating budgets by 50% over the next 5 yrs.
• In Germany, the ‘Excellence Initiative’ has designated nine universities as ‘elite’, and will provide them with a total of €1.9 billion in extra research funding over the next 5 years. In addition, 39 graduate schools are receiving €5 million over 5 years to support PhD training.