Funding institutions

6.32 Once a solution has been found to the issue of an equitable graduate contribution, the Secretary of State for Scotland will wish to consider how this will impact upon institutional funding.

6.33 The National Committee, in Chapter 19, has agreed that in the longer term a higher proportion of public funding for higher education should be routed through the student. It is recommending that the Government shifts the balance of funding away from the block grant to the Funding Bodies towards a system in which more funding follows the student so that by 2003 at least 60 per cent of total public funding to institutions is distributed in this way. We agree that this will be a desirable aim, although in the short to medium term we see a strong continuing role for the proposed new funding councils which we have invested with a range of important additional duties and responsibilities arising out of our earlier recommendations.