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The chief executive of the Higher Education Funding Council for England (Hefce) explains the organisation's strategy for dealing with the maintenance of courses in minority subjects and in subjects identified as strategically important, such as modern languages. It is noted that Hefce already provides funding for many minority subjects and will take steps to ensure that at least one national centre will remain for all subjects in which it is deemed that national capacity is vital, however, it is acknowledged that Hefce will not be able to please everybody and it is also noted that the organisation has received no additional money to tackle the issues facing it.

An analysis of the difficulties faced by universities in the United Kingdom of dealing with the problem of strategically important subjects. It is noted that there are two sides to problem subjects, a supply side and a demand side, and it does not matter how much additional funding you pump into the supply of a subject, it will still be a problem subject if very few students want to study it.

The chief executive of the Higher Education Funding Council for England looks forward to the changes the Government's Higher Education Act will bring about for the Higher Education sector. He contends that change is something the higher education sector can tackle with confidence as the sector as a whole is energetic and full of intellectual vigour, even if it is cash-strapped.

Issues relating to the debate surrounding the UK government's white paper on higher education are examined from the point of view of the Higher Education Funding Council for England's (Hefce) plans to create a robust, diverse higher education sector that offers quality at every level. It is argued that higher education institutes need to realise that no individual college or university can meet all of the needs of every customer and they must, therefore, develop their strengths and work with other providers so the sector can deliver the complete range of services demanded of it. To encourage this realisation, Hefce's approach to funding will reflect this reality, responding to the individual aims of institutions and encouraging distinctive missions.

The proposed partnership of National Health Services and the medical and health departments of universities to better manage the interdependent compartments of health services, research and education, should be executed, argues the author.

The author advocates judicious government spending for higher education, balancing desire for knowledge with specific goals to prevent individuals from becoming 'professional students.' This strategy will help countries remain competitive in the global economy by enhancing human capital while maintaining sound fiscal policy.

The outstanding results of the research assessment exercise show that British Universities can compete well in the international research arena. Although government officials are saying the results must be due to grade inflation so that they can cut promised funds, research grants from foundations and companies should be abundant.

British universities must prepare to join the global marketplace. They should be ready to offer individual learning packages to their students and to make their services much more flexible. The universities should try to be more forward looking rather than having to adapt to change after it has occurred. Many US universities have formed collaborations with technology companies to help them reach the global market. The British universities have been spending too much time looking at their domestic problems rather than preparing for globalisation.

Former UK Science Minister William Waldegrave believes EU research funding is influenced by scientific, industrial and political factors, but feels pan-European research and development projects are beneficial and should be supported. University of Glasgow Principal Sir Graeme Davies believes the EU is increasingly offering financial support to UK research projects, but an increased number of pan-European collaborative projects could encourage further support. European Science Foundation Head of Strategy Tony Mayer believes a single European Grant Agency should be established to fund European research.

The University of Southampton, England's response to an outbreak of meningitis in Nov. 1997 is discussed. Six cases of meningitis were confirmed over a three-week period, three of which proved fatal. The university maintained active lines of communication with staff, students and their parents while taking steps to control the spread of the disease with the help of medical experts from the Southampton Communicable Diseases Control. The university provided as much information as possible and was heartened by the overwhelming support it received, particularly from journalists.

The UK government's recent White Paper on science, engineering and technology advocates innovation through the interaction of the science base, technological development and market needs. Given a cautious welcome by academics, the White Paper's proposals suggest a move away from research for its own sake, towards research that contributes to the creation of wealth and improving the quality of life. However, a market-led system in which the science base is tied to highly applied, short-term objectives is rejected. Some changes to the funding councils' current practices may be needed as a result of the White Paper.

There is still a wide gulf between the natural sciences and the social sciences and humanities, although both continue to develop and prosper as separate topics. One main reason for this is the fallacy that progress in science is independent and external to society. However although changes in science and the resulting technology dramatically changes the world it does not change society on its own. Society also has a dramatic impact on scientific activity. Social science should therefore be regarded as integral to progress in the natural sciences, leading to economic and social improvement.