Lord Stevens of Birmingham

The information requested falls under the remit of the UK Statistics Authority.

Please see the letter attached from the National Statistician and Chief Executive of the UK Statistics Authority.

The Office for National Statistics is not responsible for making an assessment of the non-statistical impacts of classification decisions. Therefore, no such assessment has been made of other consequences.

The Lord Stevens of Birmingham

House of Lords

London

SW1A 0PW

19 January 2024

Dear Lord Stevens of Birmingham,

As National Statistician and Chief Executive of the UK Statistics Authority, I am responding to your Parliamentary Questions asking when the Office for National Statistics (ONS) will conclude its review of the classification of universities in the National Accounts, first announced in January 2017 (HL1604). And further to the classification review of universities announced by the ONS in January 2017, what assessment we have made of the (1) fiscal, and (2) other, consequences of universities being reclassified as public bodies as a result of that review (HL1606).

The ONS regularly reviews legislation and guidance relating to a number of institutions, including universities, to determine whether any changes would have a potential impact on their sector classification. As such, the classification review of universities in the UK, first announced on 31 January 2017 [1] will consider whether the substantial rise in tuition fees from 2012, and other changes in funding arrangements affect the classification of universities.

A further statement on the classification review of universities in the UK was released on 5 April 2018 [2]. This statement explained that the classification review had been paused because of the announcement of the review of post-18 education and funding, which raised the possibility that the cap for tuition fees may be altered. As this could affect the classification status of individual universities, the statement confirmed the classification review would recommence when there is more certainty in this area.

It was necessary to further postpone the classification review of universities in the UK due to new higher priority classification cases, such as support schemes initiated during the COVID-19 pandemic, and more recently, the energy support schemes introduced in 2022 and 2023.

At present, the ONS plans to begin the classification review of universities in the UK from Quarter 2 (April – June) 2024. However, classification priorities can change quickly, and the expected dates of completion are only indicative. Our forward work plan 3 is updated each month to reflect changes in priorities. Table 1 shows the expected timetable for the classification review.

Table 1: Expected timetable for the classification review of universities [3]

Source: Forward Work Plan December 2023 (19 December 2023)

The ONS has not yet made an assessment of the fiscal consequences of universities being reclassified as public bodies. Within our forward work plan, for each of the four cases involved, we have provided an indication that the impact on fiscal aggregates could be small (less than £100 million change).

The ONS is not responsible for making an assessment of the non-statistical impacts of classification decisions. Therefore, no such assessment has been made of other consequences.

Yours sincerely,

Professor Sir Ian Diamond

[1] Classification review of universities in the UK - Office for National Statistics (ons.gov.uk)

[2] Further statement on the classification review of universities in the UK - Office for National Statistics (ons.gov.uk)

[3] Economic statistics sector classification – Forward Work Plan dataset (XLSX, 128KB)

The information requested falls under the remit of the UK Statistics Authority.

Please see the letter attached from the National Statistician and Chief Executive of the UK Statistics Authority.

The Office for National Statistics is not responsible for making an assessment of the non-statistical impacts of classification decisions. Therefore, no such assessment has been made of other consequences.

The Lord Stevens of Birmingham

House of Lords

London

SW1A 0PW

19 January 2024

Dear Lord Stevens of Birmingham,

As National Statistician and Chief Executive of the UK Statistics Authority, I am responding to your Parliamentary Questions asking when the Office for National Statistics (ONS) will conclude its review of the classification of universities in the National Accounts, first announced in January 2017 (HL1604). And further to the classification review of universities announced by the ONS in January 2017, what assessment we have made of the (1) fiscal, and (2) other, consequences of universities being reclassified as public bodies as a result of that review (HL1606).

The ONS regularly reviews legislation and guidance relating to a number of institutions, including universities, to determine whether any changes would have a potential impact on their sector classification. As such, the classification review of universities in the UK, first announced on 31 January 2017 [1] will consider whether the substantial rise in tuition fees from 2012, and other changes in funding arrangements affect the classification of universities.

A further statement on the classification review of universities in the UK was released on 5 April 2018 [2]. This statement explained that the classification review had been paused because of the announcement of the review of post-18 education and funding, which raised the possibility that the cap for tuition fees may be altered. As this could affect the classification status of individual universities, the statement confirmed the classification review would recommence when there is more certainty in this area.

It was necessary to further postpone the classification review of universities in the UK due to new higher priority classification cases, such as support schemes initiated during the COVID-19 pandemic, and more recently, the energy support schemes introduced in 2022 and 2023.

At present, the ONS plans to begin the classification review of universities in the UK from Quarter 2 (April – June) 2024. However, classification priorities can change quickly, and the expected dates of completion are only indicative. Our forward work plan 3 is updated each month to reflect changes in priorities. Table 1 shows the expected timetable for the classification review.

Table 1: Expected timetable for the classification review of universities [3]

Source: Forward Work Plan December 2023 (19 December 2023)

The ONS has not yet made an assessment of the fiscal consequences of universities being reclassified as public bodies. Within our forward work plan, for each of the four cases involved, we have provided an indication that the impact on fiscal aggregates could be small (less than £100 million change).

The ONS is not responsible for making an assessment of the non-statistical impacts of classification decisions. Therefore, no such assessment has been made of other consequences.

Yours sincerely,

Professor Sir Ian Diamond

[1] Classification review of universities in the UK - Office for National Statistics (ons.gov.uk)

[2] Further statement on the classification review of universities in the UK - Office for National Statistics (ons.gov.uk)

[3] Economic statistics sector classification – Forward Work Plan dataset (XLSX, 128KB)

The UK stands ready to formalise our association to Horizon Europe at the earliest opportunity. At the recent EU-UK Specialised Committee the EU confirmed they were unwilling to move on UK association due to broader political issues. We continue to push the EU, by whatever means possible, to formalise our association but the EU is not living up to the commitments it made in 2020.

We recognise that delays by the EU have led to uncertainty for researchers, businesses and innovators based in the UK, including British Universities. To provide reassurance the Government has guaranteed funding for the first wave of eligible, successful applicants to Horizon Europe.

Given the EU’s persistence in delaying our association, it is only right and responsible that we are prepared for all outcomes, including one where we are not able to associate. Our priority is to support UK researchers and provide immediate stability and continuity for the sector. To this end, we are developing a coherent, compelling and high-quality programme to provide the fellowships, collaborations and industry engagement so valued in Horizon.

The fiscal impacts of the student loan reforms announced on Thursday 24 February 2022 are detailed in full in the equality impact analysis (EIA) published alongside the announcement, which is available here: https://www.gov.uk/government/publications/higher-education-reform-equality-impact-assessment.

Updates to the Resource, Accounting, and Budgeting (RAB) charge, that result from the change to the discount rate, announced by the government on 13 December 2021, are provided in Annex B of the EIA linked to above. The proportion of loan outlay issued is not expected to be repaid in present terms. Forecasts of the savings that will result from the reforms, set out in Tables 11 and 12 of the EIA, use the updated RAB as a baseline, meaning the discount rate change does not account for any of these savings.

The forecast savings are wholly attributable to the two-year tuition fee freeze and changes to student loan repayment terms, as set out on page 13 of the higher education policy statement & reform consultation, and do not incorporate other elements of the reform package. The consultation is attached.

The savings do include the changes to the Plan 2 repayment threshold for 2022/23 financial year, announced on 28 January 2022, prior to the announcement of the whole reform package.

The following table shows the spend on mental health in 2024/25 and 2023/24, the total National Health Service mandate, and the spend on mental health as a percentage of the mandate:

Source: NHS England.

Information on mental health funding within the National Health Service will be made available once NHS planning guidance is published.

We recognise that the absence of a Mental Health Bill in the King’s Speech is disappointing to many people. It remains our intention to bring forward a Mental Health Bill when Parliamentary time allows.

We continue to take forward non-legislative commitments to improve the care and treatment of people detained under the Act, including continuing to pilot models of Culturally Appropriate Advocacy, which will provide tailored support to hundreds of people from ethnic minorities to better understand their rights when they are detained under the Mental Health Act. NHS England has launched the Patient and Carer Race Equality Framework for all mental health trusts in the National Health Service to embed across England. We are also investing over £400 million of funding between 2020/21 and 2023/24 to eradicate dormitories and give patients the privacy of their own ensuite bedroom.

NHS England is taking forward a new Mental Health, Learning Disability and Autism Inpatient Quality Transformation Programme to support cultural change and a new bold, reimagined model of care for the future across all NHS-funded mental health, learning disability and autism inpatient settings. This programme will complement and further support our existing commitments to improve the quality of community care and reduce the need for inpatient care.

The non-recurrent expenditure excluded from the baseline calculation is the specific funding provided at Spending Review 2021 for costs relating to COVID-19. Central funding for pensions costs is also excluded as this cannot be split between staff working on mental health and other areas. However, making no adjustments, mental health expenditure as a share of total National Health Service expenditure is still expected to increase, from 8.3% in 2022/23 to 8.5% in 2023/24.

On 23 January 2023 the Government gave a written ministerial statement setting out its expectation for mental health spending by NHS England and integrated care boards (ICBs) in aggregate in the 2023/24 financial year. It stated that in that financial year, the Government expects mental health spending to continue to increase as a proportion of the total recurrent expenditure incurred by NHS England and ICBs in aggregate.

The following table shows recurrent National Health Service baseline spend as well as the forecast share thereof for mental health for financial years 2023/23 and 2023/24. This includes, at aggregate ICB level, baseline spend within scope of the Mental Health Investment Standard which covers all spending on mental health from an ICB’s core allocations, and at NHS England level, service development fund spending and specialised commissioning spending on mental health.

It should be noted that the figures in the table will, in part, be based on projections, owing to the statutory requirement to lay the statement before Parliament ahead of the new financial year.

The UK Government, alongside our international partners, continues to have frank and open conversations with The Gambian Government, including the President and other Ministers, about the Bill to repeal the ban on FGM. On 19 March, the Foreign Secretary issued a tweet reinforcing the UK Government's position that FGM is harmful and should be illegal, and the Minister for Development and Africa spoke to the President about the repercussions of any vote in favour of FGM once again being permitted in The Gambia.

Since October 7, the UK government has been working with relevant partners across the region, including the International Committee of the Red Cross, to help secure the release of hostages and better understand their status, including working to gain information on proof of life and access to medical professionals. As the Foreign Secretary has said, we need a humanitarian pause now to allow for the release of hostages.

The UK's development assistance to South Africa promotes a strategic partnership with a focus on shared priorities including economic development, climate change, gender equality and strengthening health systems. South Africa still faces major development challenges - particularly around poverty, inequality and unemployment - and remains eligible to receive donor assistance. Since 2014 the UK has provided South Africa with £267,928,979 in development assistance as our relationship has evolved from one of aid to one of mutual co-operation and strategic partnerships.

The UK Government does not recognise the legitimacy of the Maduro regime. We are concerned by the recent steps taken by Venezuela. We are clear that the border was settled in 1899 through international arbitration. The Foreign Secretary has reassured President Ali of this. We continue to work with regional partners and international bodies to de-escalate tensions.

Minister Rutley visited Guyana on 18 December to show UK support for its territorial integrity. He met with President Ali, Foreign Secretary Todd, National Security Advisor Captain Gerry Gouveia, Defence Force Chief of Staff Brigadier Omar Khan and The Caribbean Community (CARICOM) Secretary General Dr Carla Barnett to show UK support for Guyana's territorial integrity.

We are concerned by the recent steps taken by Venezuela. We are clear that the border was settled in 1899 through international arbitration. The Foreign Secretary has reassured President Ali of this. We continue to work with regional partners and international bodies to de-escalate tensions.

Minister Rutley visited Guyana on 18 December. He met with President Ali, Foreign Secretary Todd, National Security Advisor Captain Gerry Gouveia, Defence Force Chief of Staff Brigadier Omar Khan and the Caribbean Community (CARICOM) Secretary General Dr Carla Barnett to show UK support for Guyana's territorial integrity.

The Equipment Plan 2023-33 is based on data from the close of financial year 2022-23 and does not reflect the policy intent set out in the Defence Command Paper Refresh published this July. The department's operating model, where responsibility for managing the equipment plan is delegated to Top Level Budgets, allows them to have different financial positions and to be at different stages of addressing their financial pressures.

The development and acquisition of new ground-launched, long range, precision-guided weapons are included in the Equipment Plan 2023-2033.

All Land Deep Fires Programme costs have been included except for Land precision strike, for which funding has not yet been committed.

The Commando Force modernisation programme is delivering a transformational change to the UK's amphibious capability. The programme will be delivered in two investment increments, called OPERATE and FIGHT.

OPERATE will deliver a transformation of 3 Commando Brigade's operational capability on land. This element is fully funded with cost estimates being included in the Equipment Plan 2023-2033.

FIGHT will deliver the additional capabilities required to conduct ship-to-shore operations in a contested maritime environment. Estimates for this increment are not included in the Equipment Plan but will be considered within the 2025 Defence Review investment decisions.

The Royal Navy is constantly reviewing and updating their offensive and defensive capabilities based upon intelligence and threat analysis.

Due to the sensitive nature of these assessments, it is inappropriate to discuss the specific nature of our capabilities and the operational analysis being conducted

Russia and China continue to progress in the development and deployment of hypersonic missiles and technologies and these weapons pose an increasing threat to international stability.