Arts & Humanities Research Council

Delivery Plan 2011-2015

ContentsKey points 1

Section 1: Introduction 3

Section 2: Research and training priorities 6

Section 3: Economic, societal and cultural impact 14

Section 4: Resources 18

Key points1. Over the next spending period the AHRC will

develop its role as a strategic investor in research,focussing its resources to generate excellentresearch and training and stimulate partnershipsacross disciplines, providers, agencies and countries.

2. The Delivery Plan for 2011-15 recognises the moresevere economic circumstances of the forthcomingperiod and the need to use research investmentstrategically for maximum benefit. The Plan hasevolved from that for the last spending reviewperiod and has three major aims:

• To support arts and humanities research of thevery highest quality and to ensure that strategiccapability in arts and humanities disciplines issustained;

• To focus resources in order to obtain the greatestefficiencies and best value for money;

• To deliver maximum benefits for society and theeconomy by leading the strategic stimulus ofresearch and knowledge exchange, supporting thecreative economy to stimulate growth, and bycontributing to the improvement of wellbeing andpublic services especially in relation tocommunities.

3. Judged by quality, proportion of global output andreturn on investment, arts and humanities researchin the UK is internationally pre-eminent. The AHRCis committed to funding researchers to enhance theexcellence of this achievement across the range ofthe disciplines within its remit. We will:

• Award longer and larger grants to proven centresof excellence in a number of HEIs, and promoteconsortia arrangements to support talent acrossthe board and develop collaborative critical mass;

• Invest in the development of individuals andprojects at all levels from postgraduates, throughearly career researchers, to projects of exceptionalscope and importance through the award ofFellowships;

• Implement the new thematic programmes onwhich the AHRC has consulted over an extendedperiod to stimulate discipline-crossing researchand respond to changing methodologies andopportunities;

• Sustain key areas of strategic national need (forexample in modern languages) through thesemeasures and through additional support asindicated below.

4. The AHRC’s new thematic programmes – DigitalTransformations, Translating Cultures, Care for theFuture and Science in Culture, as well as theConnected Communities programme delivered incollaboration with other Research Councils – willreceive enhanced support. They reflect the ways inwhich modern research is changing with the impactof new technologies, the rise of cross-disciplinarywork, the increase in international and multi-agencyfunding, and the growing interaction between HEIs,non-academic partners and the general public. Theprogrammes will develop interdisciplinary research,cross-institutional partnerships and engagementbetween with private, public and voluntary sectororganisations that use this research.

5. We will continue to invest around a third of ourresource to support postgraduate research andtraining and develop our provision in line with theprinciples established in the Block Grant Partnership(BGP) to maintain disciplinary capability. We willfocus on centres of excellence and high-qualityinstitutional consortia. The latter will ensuresustained support for strategically important areaswhere current provision is dispersed. This will poolexpertise, make best use of potential and deliverefficiencies. We will support the development ofresearchers in all phases of their careers, particularlythose at an early stage. The AHRC strongly endorsesthe UK ‘Concordat to Support the CareerDevelopment of Researchers’ (2010).1

6. The AHRC will deepen its contribution to cross-Council programmes addressing the RCUK ‘GrandChallenges’. Among these we will prioritise DigitalEconomy and Living with Environmental Changealongside Connected Communities. We are alsoaware of the importance of our contribution toGlobal Uncertainties, particularly the research wefund on ideologies and beliefs, the strand on whichwe lead.

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1 http://www.researchconcordat.ac.uk/

7. The AHRC will embed the stimulus towards impactacross all of its activities. In particular, we willimplement a new strategy for knowledge exchangeand economic impact focusing on the creativeeconomy. The UK’s creative economy – embracingthe multiple sectors of the creative industries andthe public infrastructure of museums, galleries,libraries, orchestras, theatres and the like – is large,exceptionally dynamic and of growing importanceboth socially and economically. Through a revisedstrategy for knowledge exchange, we will create anumber of (provisionally-named) Creative Economy‘hubs’ coordinated at national level. Their purposewill be to develop research in partnership with thecreative and cultural sectors including bothcommercial and public partners. Through the ‘hubs’,and by direct means, we will develop sustainablepartnerships with private sector enterprises andenhance our collaborations with public bodies suchas the BBC, the British Library and British Museummindful of the synergies between these and thecommercial sector.

8. Arts and humanities research brings major socialbenefits in, for example, the maintenance ofheritage and the development of wellbeing andcitizenship. We will prioritise heritage researchincluding leading on this in Europe, and we willlaunch new initiatives in medical humanities andresearch on the role of culture in wellbeing. A majorthread of activity over the next period will befocused on communities. We will work alongsidekey government departments to assist in developingimproved public services and evidence-basedpolicymaking in areas such as medical andprofessional ethics, public values and the lessonslearnt from history.

9. The AHRC will continue its leadership in Europe anddevelop its engagements with leading Americanfunders to support research in core areas. As a newstep we will also prioritise our work in South Asia. Inaddition, to reflect the global nature of culture andcreativity as well as research, we will seek tofacilitate interaction with the creative and culturaleconomy internationally. The AHRC is mindful ofthe important role of culture in diplomacy and inestablishing authority in the UK’s overseasrelationships. We will continue to support researchthat generates knowledge of the importantlanguages and complex cultures of the parts of theworld with which the UK is strategically engaged.

10. The research sector faces major challenges over thecoming period in the context of reduced resource.Sustaining quality and volume of output will requireefficiencies, prioritisation and new methods. ThisPlan outlines the steps the AHRC will take tomaximise the use of its resources with respect to thefollowing. We will:

• Manage demand so that resource is used tomaximum advantage for researchers, HEIs and theAHRC.

• Focus on excellence and critical mass allowingincreased autonomy through longer and largerawards thus extending the principles behind theBGP into other domains.

• Ensure complementarity with other funders,particularly the support offered in HEIs throughQuality of Research funding, and by the BritishAcademy (BA), to ensure provision for all stagesand modes of research. With the funding councils,we will seek to ensure the continuing health of keydisciplines through a period of change.

• Scrutinise administrative systems to realise efficientand fair processes, using new techniques to awardfunding on a strategic basis (e.g. ‘sandpit-style’events). We will employ robust evaluation toensure we are delivering both programmes andpeer review effectively.

• Work in partnership with the other ResearchCouncils and the Shared Services Centre to deliversignificant collective savings and benefits in back-office functions.

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Section 1:Introduction

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1.1 Understanding the fabric of our history, culture andbody of ideas – researching, interpreting andcommunicating it – helps us to understand who weare and who we want to be. Research in the arts andhumanities reworks these legacies, including thoseof other cultures that bear upon ours and theinternational context in which we have developed,and transmits the whole across the generations. Theskills and abilities of arts and humanities researchersrefresh and maintain our understanding of the worldand the power of our thinking. An engagement withour history, with cultural development over timeand in diverse circumstances, and with values andcritical thinking are among the attributes vital to avigorous democracy. They illustrate the importance,power and authority of the arts and humanities inour lives.

1.2 Research funded by the AHRC maintains this lifeblood. It provides specific knowledge of many areasincluding rights and values and the way we sustainour tangible and intangible heritage. It providesexpert background to our global engagements,especially in parts of the world where commonknowledge understands little of local culture,history and way of life. And, as described later –especially in Section 3 – it has extensive economicand societal impact.

1.3 The AHRC’s plan for the next spending periodsupports outstanding research which achieves theseaims across the wide range of disciplines the AHRCcovers. We will support this by funding work ofestablished and emerging excellence within aframework of clear strategic priorities. These followfrom our distinctive role and mission which is to:

• Take a strategic view of the research domain andlead research direction in key areas;

• Lead interdisciplinary work targeting the ‘grand’,emergent and other research challenges;

• Stimulate cross-institutional, cross-sector, cross-disciplinary and cross-national working where itadds value and/or creates critical mass;

• Promote knowledge exchange and publicengagement in key relationships with business,government, and other sectors to extend thebenefit and impact of research;

• Maintain national capability in the research base;

• Lead the strategic development of the nationalprovision in postgraduate research and training.

1.4 The AHRC’s support of research is complementaryto that of the BA and the charitable sector. TheAHRC and the BA have different remits: theAcademy does not support the arts, for example,and its brief includes social science. Nonetheless oursupport over the next period will be integrated andcomplementary. Broadly speaking, the AHRCsupports postgraduate research and training, whilstthe BA provides post-doctoral awards. Bothorganisations offer Fellowships and are attentive indifferent ways to early- and mid-career needs. Wehave jointly examined the whole-career life cycle ofhumanities researchers to ensure provision neitheroverlaps nor leaves gaps. Distinctive in the AHRCprovision are: the strategic themes, the explicitsupport of inter-disciplinary (including cross-Council) work, the stimulus of economic andsocietal impact, and incentives for collaborativeresearch. The two bodies will continue to workclosely together to integrate provision and jointly-fund activities when appropriate (e.g. the BA PolicyCentre – also with ESRC). The AHRC will allocate themajority of its Fellowships to areas of strategicpriority and national capability (e.g. languages,digital humanities, creative economy, heritage, andinterdisciplinary research with science subjects) andto deliver research of exceptional scale andimportance. (The AHRC, British Academy and theESRC simultaneously publish a joint statement onprovision – www.ahrc.ac.uk/About/Policy/Documents/Jointagreement2010.pdf)

1.5 The AHRC also appreciates the importance of notduplicating provision under ‘dual support’. There willbe clear distinction, in areas such as research leave,of the difference between the support providedthrough QR allocations (usually in the form ofsabbaticals) and that provided by AHRC Fellowshipswhich, as above, will target strategic priorities andresearch of exceptional scale and importance.

1.6 The AHRC will liaise with the funding councils onmatters of shared interest, especially thedevelopment of the REF and the need to sustainstrategically important capability. In particular, wehave concerns in the area of Modern Languages, artand design and heritage management. The AHRC

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and the funding councils will continue to holdperiodic developmental meetings especially in viewof the historically close fit in the arts and humanitiesbetween research and teaching.

1.7 Section 2 of this plan details the priorities for thedevelopment of arts and humanities research overthe next period, while Section 3 describes a newapproach to leading enhanced benefit and impact. A number of overall points are worth noting:

• The AHRC will direct support to areas of strategicpriority and to sustain capability.

• The AHRC will progressively concentrate resourcethrough the award of fewer, longer and largergrants based on established excellence, innovationand critical mass. Awards under thematicprogrammes will require leadership from suchcentres; BGPs for PG research and training willrequire critical mass as well as an establishedrecord; the development of Creative Economy‘hubs’ (see Section 3) will allow HEIs with strongrecords of knowledge exchange to focus andspecialise.

• The development of consortia will provideopportunities for the research to draw fromdistinctive excellence in all institutions andgenerate new modes of collaborative working.

• The AHRC will incentivise and organise partnershipworking between organisations inside and outsidethe academy, especially to enhance impact.

• The Fellowship scheme will be further developed.Fellowships will be used for particular purposes asabove and to develop research leadership skills,collaboration (where appropriate) and early-careersupport.

• With a reduced number of funded institutions, theAHRC will work more closely with these on issuessuch as demand management, collaborativeworking and the enhancement of impact.

• We will continue to use the recently-introducedmechanism of ‘commissioned research’ to providefurther investment in areas of strategic oremerging importance in the form of, for example,scoping studies or intelligence gathering; tostimulate innovative approaches and new

methods (e.g. in interdisciplinary research); and tosponsor partnership working and stimulate impact.

1.8 The AHRC’s international priorities will focus on:

• Extending our engagement in European arts andhumanities research through continuedleadership of the Humanities in the EuropeanResearch Area (HERA), the new Joint ProgrammeInitiative (JPI) in Cultural Heritage, and extending astrong record of leveraged funding;

• Accelerating the AHRC’s involvement in NorthAmerican research, with a greater focus on (1)partnership funding of projects and policydevelopment with the US National ScienceFoundation (NSF) and National Endowment forthe Humanities (NEH) and the Canadian SocialSciences and Humanities Research Council(SSHRC); (2) the development of new work withthe US National Institutes of Health (NIH) onmedical humanities; and (3) the extension of thesuccessful Library of Congress scheme to otherinstitutions and to early career researchers.

• Exploring the natural opportunities that arise froma shared history, elements of a shared culture andincreasingly shared population by focussing onIndia and South Asia will be the main focus fornew development over the next period. There are,in addition, as with the US, opportunities to bedeveloped in the creative industries (especiallyfilm). In engaging with India, the AHRC is aware ofthe value of a multi-agency approach, as forexample in its concordat with the British Library,and the need to work with the RCUK office and theIndian Research Network, including theDepartment for International Development(DFID).

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Section 2:Research and training priorities

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2.1 The AHRC’s priorities for the research andtraining for which it has lead responsibility

2.1.1 We will continue to develop research in areas of UKstrength and international leadership across the artsand humanities portfolio. We will concentrate oursupport on excellent research which hastransformative potential, fosters cross-disciplinaryworking inside and outside the arts and humanities,and engages researchers with partners outside theacademy. Through highlight notices, follow-onfunds and greater encouragement of ‘pathways toimpact’, the AHRC will accelerate the realisation ofthe value and benefit of research in all core areas.Specifically we will:

• Support research that provides deepunderstanding of the history, intellectualdevelopment and creative output of our ownheritage and those of countries with which weengage diplomatically, culturally andeconomically.

• Encourage research that provides a better-informed approach to communications withpartner and competitor nations and with the UK’sown multi-cultural communities. This will helpensure that the UK sustains its place in a globalisedworld.

• Build on the successes of previous projects inwhich arts and humanities research influencespublic policy and community cohesion, ethicalchallenges and debates about human rights.Research in these fields has explored areas such asreligion and youth, the ways we use logic to tackleproblems, ethical dilemmas in decision making,the lessons of the past and of war and conflict, andfundamental issues such as tolerance, trust inpublic life, belief and conflict.

• Support research that preserves and refreshes thecreative arts traditions for which Britain and itsdiasporic communities are celebratedinternationally, and which underpins the UK’scapacity for innovation in fields such as design,new media and digital technology.

• Build capacity in endangered areas of heritagescience and enhance the role of culture ineconomic regeneration by working in partnershipwith the UK’s world-leading cultural institutions.

The outcomes and benefits of this researchextends from underpinning outstandingexhibitions of art and history, attracting bothdomestic and international visitors, to providingtechniques used in forensic archaeology (e.g.identifying victims in mass graves). We will supportprojects that help build a stronger understandingof the past and a deeper connection with local,national and international heritage.

2.1.2 The AHRC will further develop its BGP funding modelto support postgraduate research and training. Wewill make fewer awards and focus on centres ofexcellence where training and facilities are of thehighest quality. So as not to lose capacity, the AHRCwill encourage collaboration among institutions. TheAHRC will no longer support an open competitionfor studentships. We will refocus our PG support ondoctoral provision and, through the BGPs, supportMasters only as part of a programme leading todoctoral awards. We will increase our expectationthat PG training stimulates knowledge exchange andthe interaction between postgraduate research andnon-academic agencies for all students. We willrefocus any project-based studentships to addresspriorities (e.g. language-based area studies).

2.1.3 The AHRC will develop its Fellowship scheme asindicated above (paras. 1.5–1.7). In addition tosupporting research in priority areas and projects ofexceptional scale and importance, the new schemewill stimulate leadership development for early-andmid-career researchers.

2.1.4 The AHRC will promote and further developopportunities for postgraduates and early careerresearchers to gain experience outside their coredisciplines, outside Higher Education and outsidethe UK, building on the success of its CollaborativeDoctoral Awards and Library of Congress scheme,and by developing additional internationalpartnerships especially in North America and Asia.

2.1.5 We remain committed to the development of earlycareer researchers, to develop their skills, benefit thewider economy, and to ensure the continuingpipeline of excellent researchers. In this DeliveryPlan Period we will:

• Continue to support the implementation of the‘Concordat to Support the Career Development ofResearchers’;

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• Continue to provide tailored support for ECRsthrough, for example, ECR Fellowships;

• Work across RCUK and with other partners toensure continuity of training investment after theend of ‘Roberts’ funding through the embedding ofskills development within normal business;

• Work with universities to ensure a betterunderstanding of our expectations for researcherdevelopment;

• Enable mobility between sectors, including theprivate, public and voluntary sectors.

2.2 National Capability and Health of Disciplines

2.2.1 With reduced funding, we will prioritise sustainingnational capability in key areas. We will work withthe Funding Councils to ensure that we are aware ofany loss of capacity in core areas, and will interveneif we feel that national capability is endangered. Wewill ensure capacity is maintained in domains sharedwith other Research Councils (e.g. Archaeology,Design, Law, Modern Languages and Politics). Wewill also liaise with Independent ResearchOrganisations (IROs), Skillset and businesses onskills development and knowledge exchange in keydomains of the creative economy.

2.2.2 We will allocate specific funds towards three areasof current strategic need:

• Modern Languages: we will work with ESRC,Funding Councils, and other parties (includingHEIs, learned societies and key users) to build onthe success of the Language Based Area Studies(LBAS) centres (which focus on Eastern Europe, Asiaand the Middle East). We will also use ourTranslating Cultures thematic funding and targetedFellowships for these and western Europeanlanguages. Our leadership in HERA includes boththe current Joint Research Programmes on CulturalDynamics and Creativity and Innovation, and a newprogramme on Cultural Encounters, modelled onAHRC’s Translating Cultures.

• Design: we will work with the Design Council andkey business users (especially through theConnected Communities programme) to targetsupport for design for social purposes (e.g. againstcrime) and commercialisation. Research in Design

and Environment discovers ways to stimulatedesired behaviours (e.g. facilitating neighbourlyand community interaction) and avoid theundesirable (e.g. crime). AHRC will build on theoutcomes of its earlier Design in the 21st-centuryprogramme (funded jointly with EPSRC), the‘Design against Crime’ initiative and a joint projecton residential wellbeing developed with the (nowdisestablished) Commission for Architecture andthe Built Environment (CABE).

• Heritage: building on the Science and Heritageprogramme, we will continue to work withpartners in Europe and elsewhere (e.g. India), withEPSRC and IROs to develop co-fundingopportunities where possible and ensure thatfindings are communicated widely and effectivelyto public audiences to enhance impact andencourage economic benefit.

In each of these areas, we will offer BGPs andFellowships to build capacity.

2.2.3 To enhance strategic support for vital so-called‘minority’ languages (i.e. those largely outside thecurrent, largely western European, provision), theAHRC will allocate £675k per annum additionally tothe measures noted above. This money will developthe successful LBAS initiative (see para. 2.2.2 above)into a second phase. Originally funded for five yearsby two Research Councils and two funding councils,and required to become self-sustaining, the fiveCentres were developed to build capacity in areas ofparticular strategic importance (the Arabic-speakingworld, China, Japan, Russia and Central and EasternEurope). Phase 2 funding will focus on realising thebenefits of the work the Centres have done. We donot anticipate funding the Centres on the same basisas currently, nor making a significant contribution tothe maintenance or extension of infrastructure.Instead, the additional resource will be used (subjectto satisfactory proposals) to enhance impact and wewill seek to secure additional contributions frompartner bodies including current funders and hostHEIs.

We will encourage Centres that have overlappingareas of expertise to collaborate where appropriateand do not necessarily anticipate funding all of thecurrent Centres separately. In terms of futuredevelopments, the AHRC will explore the potentialfor further centres focussing on South Asian

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(especially Indian) languages and BrazilianPortuguese. We will use the new BGP-2 scheme tofocus on these new areas to develop capacity atpostgraduate level as a first step.

2.3 Cross-Council and multidisciplinary priorities

2.3.1 The AHRC undertakes to continue its commitmentto RCUK’s cross-Council activities and programmes,and to enhance its commitment in some areas. Ourhighest priorities are Connected Communities andthe cross-Council programmes in Digital Economyand Living with Environmental Change (LWEC) inthat order. We will also offer targeted support toGlobal Uncertainties and Lifelong Health andWellbeing using highlight notices and othermethods to generate relevant research from ourcore programmes. Amongst the six RCUK cross-Council ‘Challenge’ programmes, it is in these four,plus Connected Communities, that AHRC can havemost significant impact.

2.3.2 Our contribution to cross-Council programmes willin part be delivered through the AHRC’s four newpriority themes: Care for the Future, TranslatingCultures, Digital Transformations and Science inCulture. The choice of these themes – which hasfollowed very extensive consultation – reflects thechanging nature of the research domain (e.g. intechnology); key priorities for impact (e.g. inheritage management); the enhancement ofnational capability (e.g. in cross-culturalcommunication and languages); and the need toinvestigate the relationship between natural scienceand the arts and humanities.

2.4 Connected Communities

2.4.1 This new programme is led by the AHRC inpartnership with EPSRC, ESRC, MRC, NERC and arange of external partners (e.g. Department ofCommunities and Local Government [DCLG] andthe Royal Society of Arts [RSA]). All were involved inthe June 2010 inaugurating summit and areparticipating in the cross-disciplinary projects thatensued. The programme will be delivered over thespending period as a multi-agency collaborationbuilding on the ‘connected’ engagements of the artsand humanities research base with communitiesand local organisations.

2.4.2 There is increasing recognition of the central rolethat communities play in tackling social challengesin the co-delivery of services and the prosperity oflocal economies to sustain quality of life. Research isessential to understanding communities ascomplex, diverse and changing entities and theforces and values that shape their evolution. Withinthis broad portfolio, arts and humanities researchwill, for example, contribute to knowledge of therole of beliefs and cultural and creative activities incommunity life. Overall, the programme willcoordinate research across the Research Councils toempower communities for sustainabledevelopment, active citizenship, economicregeneration, social cohesion and wellbeing.

2.4.3 Key priorities over the Spending Review period are tosupport cross-disciplinary research in partnership withgovernment departments, devolved assemblies, localgovernment and the charitable and voluntary sector,as well as with communities themselves. This researchwill address key challenges such as: the potential ofthe creative economy to stimulate communityprosperity; the role of changing civic values andcommunity cultures in fostering communitycohesion; the relationship between community valuesand problems such as crime, anti-social behaviour,and low social mobility and educational participation;and ways to increase community participation,engagement and self-reliance.

2.4.4 Connected Communities will enable the AHRC tocontribute to the government’s initiatives onlocalism and the ‘Big Society’ in the following areas:

• Broadcasting and new virtual communities: theinfluence of media – including local media – onissues such as dissemination of information andthe enablement of community activity is clearlyrelevant, as are the ways in which communities areconstituted through virtual means.

• Regeneration through Arts and Culture: the AHRCwas a major partner (with the Department ofCulture, Media and Sport [DCMS] and the EuropeanCommission) in researching the impact of ‘Liverpool’08’ (European City of Culture), and we will continueto work in this area in Liverpool and elsewhere (e.g. seaside towns; the new V&A in Dundee; the2012 Cultural Olympiad; and Derry-LondonderryUK City of Culture 2013). This is directly related tothe AHRC work on the Creative Economy.

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• Heritage, museums, libraries, theatres, andgalleries: these can be crucial not only for theireconomic impact (including regeneration projects)but also as a focus and means for communityactivity. Theatre and creative writing orarchaeological and local history, for instance, canbe agents in drawing people together andunderstanding shared identities and values.

• Values and concepts: recent speeches on the ‘BigSociety’ have made use of key behavioural orevaluative concepts that can be difficult to pin-down such as fairness, engagement, responsibility,mutuality, individualism, selfishness. In additionkey related ideas are frequently used byproponents: liberty, trust, civility, justice,citizenship and common interest. Researchclarifies and contextualises these.

• History: communities are historically-specificentities which thrive or decline as conditions andcircumstances change. Understanding whysocieties change and how, inevitably, communitiesand individuals are caught between values as theydo so must be central to the project. An example ofa key issue for investigation might be the evolutionof civic institutions mediating between the citizenand the state and the role of these institutions indeveloping (or frustrating) engagement (e.g.schools, churches, GP practices, the voluntarysector).

• Faith, Multiculturalism and diasporiccommunities: our communities are changing invery obvious ways that we barely understanddespite familiarity. The impact of migration, theconflict around faith, the power of newtechnologies to provide ways of understanding (ormechanisms for terrorist organisation) – these aremajor issues. We are increasingly aware ofdifferent modes of life, but often we know littleabout them. How can research help us understanddifferences in history, culture and outlook?

• Generations: we face the certain prospect of anageing population and a tilting of the demographicbalance. How the youngest and the older parts ofour community relate to each other will be animportant issue in national life in coming years andwill involve major issues such as the cross-generational transmission of knowledge, skills andtraditions. There is a growing research literature

that indicates a correlation between culturalparticipation and both longevity and subjectiveassessments of well-being amongst older people.2

The AHRC is working with DCMS and ESRC onunderstanding the role of cultural participation insuch sequences.

2.4.5 Research reviews and scoping studies for ConnectedCommunities are underway. We will use summitsand ‘sandpits’ as well as calls for CollaborativeDoctoral Awards, research networks and Fellowshipsto develop research teams across disciplines withexternal partners in the public, private and thirdsectors. This will ensure communities are engagedand the research is developed ‘on the ground’.

2.5 Digital Economy

2.5.1 The Digital Economy (DE) programme is alreadyestablished with contributions from the AHRC onSalford Media City and design in the digital age, forexample. Our main contribution during the nextperiod will come through the Digital Transformationspriority theme, the Centre for Copyright and NewBusiness Models (see below), and throughcontinued work with Salford Media City and theDigital Economy Hubs focusing particularly on thecommunities and culture theme in the DEprogramme and interacting with ConnectedCommunities. There are also synergies with theAHRC’s new strategy on the Creative Economy.

2.5.2 During the next SR period, the AHRC will establishand lead a new centre for Copyright and NewBusiness Models with several partners (EPSRC, ESRC,IPO, NESTA and TSB). There is consensus acrossthese agencies, leading researchers and businessleaders, that issues such as rights management, thelegal framework for copyright, and the revision ofconventional business models produced by theglobal reach of the digital revolution will demandnew kinds of research and new collaborative cross-disciplinary and cross-sectoral enquiry. The intentionis to develop a centre responsive to these digitally-led challenges. This will embrace key areas of artsand humanities research such as content creation,copyright law, archive and heritage management,

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2 Yun Wong and Marianne Law, DCMS and the Ageing Population – Opportunities andRisks for Our Sectors: an evidence-based strategic narrative (DCMS Evidence andAnalysis Unit, 2010).

the historical context of legal and regulatoryframeworks, and the impact of publicly-disseminatedinformation, as well as issues to do with openaccess, democratic decision making and free speech.This will integrate with several areas of existingactivity, most notably the Digital Transformationstheme and the Creative Economy strategy.

2.5.3 Digitisation transforms methods of interpreting andexploiting new knowledge and creative possibilitiesin the arts and humanities. Perspectives on modes ofreproduction and dissemination, and the ways inwhich society communicates and uses informationwill be crucial to understanding the potential, scope,limits and impacts of digital technologies. This willengage a broad range of partners among, e.g.,theatre companies, national institutions, galleries,publishing, law, and media companies.

2.5.4 Through calls under the Digital Transformationstheme, we will exploit the potential of digitaltechnologies to transform research in the arts andhumanities in methodology and cross-disciplinarythinking. Digital innovation, the online revolution,the potential for an ‘infinite archive’ and associatedchanges are transforming the way people andorganisations interact. They also raise complexethical and social issues around responsibility,identity, privacy and data security.

2.5.5 We will internationalise this work through severalroutes: (1) In India through a collaborative ventureon Digital Knowledge Exchange with the BritishLibrary and Indian researchers and culturalinstitutions; (2) through involvement in theUK/US/Canadian/Dutch programme on ‘Digginginto Data’; (3) through exploration of furtherresearch collaboration, especially in Asia wherethere is a strong interest in the arts and humanitieselement of the digital economy.

2.6 Living with Environmental Change (LWEC)

Building on the work we have funded in ourLandscape and Environment and Science andHeritage programmes, our core contribution toLWEC will come through the Care for the Futuretheme, developing work on environmental values,rights, responsibilities, justice and intergenerationalequity in exploiting natural resources, mitigatingand adapting to future environmental change andconserving our cultural heritage. Linking with the

Connected Communities programme, we willsupport further research on engaging communitiesthrough culture to promote sustainable behaviour.We will deepen our international collaboration inthis area through the European Joint ProgrammingInitiative on Cultural Heritage and Global Change.

2.7 Global Uncertainties

Our contribution to Global Uncertainties will largelybe through our Translating Cultures theme. The needfor diverse cultures to understand and communicatewith each other is greater than ever, and translationin its widest sense is an essential tool to ensure thatlanguages, values, beliefs, histories and narrativescan be shared and understood. These issues haveconsiderable policy relevance culturally,linguistically and ethnically at home and abroad, andunderpin the security focus of Global Uncertainties.We need diplomats, charitable organisations, seniormilitary officials and businesses who engagesensitively in a complex global environment.

We will support research that informs knowledge ofstrategically significant parts of the world, and helpsus engage with our European neighbours ingovernment, business and cultural matters.Furthermore, the global significance of the UKcreative economy–including institutions such as theBBC and the forthcoming CulturalOlympiad–requires informed engagement withcultural diversity.

We will enable researchers to engage withgovernment departments and agencies (includingthe Home Office, the Cabinet Office and theForesight Programme) as well as with localauthorities, voluntary, minority and othercommunity groups, the private sector, the museum,archive, library and heritage sectors, and theprofessions to increase understanding of futureneeds, the role of history and tradition, issues of risk,resilience and public controversy, and the culturalcontext of attitudes and behaviour.

2.8 Lifelong Health and Wellbeing

Building on our contribution to the New Dynamics ofAgeing programme, new research in the Science inCulture theme (see below) will include the medicalhumanities, the role of culture and participation incultural activities in mental and physical wellbeing

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(including the role of cultural values, rights, religionsand systems of belief), and the legal, ethical andpublic policy issues associated with some areas ofmedicine and health technology. This includescapacity building work in the area of health andwellbeing which we are conducting in partnershipwith the Scottish Funding Council and NIH in the US.Linking with the Connected CommunitiesProgramme, we will contribute to exploring the rolesof communities in providing care for vulnerablegroups.

2.9 Science in Culture—supporting interdisciplinaryresearch with STEM subjects

This new AHRC theme will enhance cross-disciplinaryunderstanding. Research on historical, cultural, legaland ethical context is critical for the futuredevelopment of many leading areas of science andthe policy debates and controversies that cansurround them. It contributes to our understanding ofthe nature, value and limits of scientific knowledge,and the role of imagination, argumentation, creativityand discovery in scientific enquiry. Research will alsoexamine the complex ethical and regulatory issuesraised by some applied technology.

The AHRC has already developed work in this areathrough projects with the EPSRC (on robotics), theRoyal Society (on neuroscience and the criminaljustice system), the Scottish Funding Council (onmedical humanities), and BBSRC (on the design ofvisually complex data sets).

2.10 Other government research and developmentinitiatives

2.10.1 Government Departments

We will contribute to public services and policy,collaborating with other government departmentsand their sponsored agencies, the DevolvedAdministrations and local government to assist withevidence based policymaking. We will focus on issuessuch as the ‘Big Society’, localism and cohesion (withDCLG and local government), national security (withthe Security Services), cultural diplomacy (with theBBC World Service and British Council), civil liberties(with the Home Office), medical humanities andbioethics (with Scottish Funding Council andDepartment of Health), cultural policy, wellbeing

and the ageing population (with DCMS and theDevolved Administrations), and human rights (withthe Ministry of Justice [MoJ], Foreign andCommonwealth Office [FCO] and the UKParliament).

2.10.2 Technology Strategy Board (TSB)

The AHRC will continue to work with the TSB todevelop research in the creative economy andknowledge exchange. This will pool endeavour,share expertise and add resource.

• Creative Economy: we will identify opportunitiesto work with TSB on our Creative Economystrategy, seek engagement by them in the ‘hubs’,and deepen our engagement with the TSB CreativeIndustries KT Network. We will also exploreinitiatives to work with TSB on creativeentrepreneurship.

• Digital Economy: this includes the Centre ofCopyright and New Business Models (see 2.5.2above: AHRC’s commitment to this is £2M over thespending period), the existing DE hubs, and areasof mutual interest in the Assisted Living InnovationPlatform, especially research in design and ethicsin delivering technological solutions for improvedquality of life and wellbeing.

• KTPs: we are currently the second largest ResearchCouncil sponsor of KTPs and will develop thisportfolio.

2.11 Spending Profile

2.11.1 Like most government departments and agencies,the AHRC will operate with significant real-termsreduced resource over the next spending period. Wewill ensure that administrative and efficiencysavings make available the maximum amount offunding for research. Nonetheless we need toprioritise resources, reduce allocations in someareas and cease spending in some. Savings will bereallocated to support other areas of research,knowledge exchange and postgraduate training.

• Closure of the Creative and Performing ArtsFellowships, Research Grants Practice-led &Applied Route, KT Fellowships and CatalystSchemes;

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• Scheduled ending of the following centres andprogrammes during the CSR period: Landscapeand Environment; Diasporas, Migration andIdentity; Beyond Text; Design in the 21st Century;Religion and Society; Science and Heritage; Centrefor the Evolution of Cultural Diversity; Centre forLaw, Gender and Sexuality; Centre for Scottish andIrish Studies; the Archaeology Data Service; Centrefor Studies in Intellectual Property; the Museumsand Galleries Research Programme; andEUROBABEL.

• We will make some reductions to postgraduatefunding in line with the overall settlementincluding withdrawal from stand-alone Masters(though we will allow increased flexibility for 1+3doctoral support under BGP).

2.12 Focusing on Excellence

2.12.1 Of late, and in line with developments across all theResearch Councils, the AHRC has made awards tofewer institutions and in larger amounts usingmechanisms such as the BGP in postgraduatefunding. In research awards, currently 39% offunding (excluding PG) is held by 10 institutions,60% by 20, and 75% by 30. (Factoring in PG fundingincreases the concentration because research andPG activity are strongly correlated.) NonethelessAHRC makes awards of relatively small amounts toa significant number of other institutions. (Over thecurrent spending period, the AHRC has madeawards in one form or another to over 80institutions.) It is therefore appropriate to look atthe overall distribution and at how effective focusmight be achieved given the real-terms reduction infunding and the relatively high cost of processingsmall awards. In making these adjustments, we willensure that specialist providers continue to besupported in strategically important areas and thatexcellent researchers have the opportunity to bid forfunding through partnership consortia.

2.12.2 The following approaches to this issue have diverseaims but are intended to produce a more effectivefocus of resource.

• Make longer and larger awards to fewerinstitutions: strategic awards will requireleadership as well as excellence in relevantspecialist areas.

• Through these awards, development of the BGPscheme and other means, we will encourage thedevelopment of consortia to give opportunities toexcellent researchers everywhere, create criticalmass (e.g. in ‘minority’ modern languages),develop leadership capacity and experience, andengage non-HEIs in the research process.

• Use the Creative Economy ‘hubs’ to ensure thatrelevant talent and expertise continues to besupported at effective levels, and to enablepartnerships with more experienced researchleaders.

• Preserve capability in areas of strategic importance(e.g. Design) occurring in institutionsconventionally outside those receiving largeramounts of funding (e.g. schools of art or music).

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Section 3:Economic, societal andcultural impact

14

3.1 Arts and humanities research has economic, societaland cultural impact in a number of ways: directeconomic impact through, for example,commercialisation of research outputs; indirecteconomic impact through the maintenance andenhancement of heritage and culture and the intakeof a large number of overseas students; impact onsociety through research-informed policydevelopment and improvement to public services;impact on culture through contributions to thecultural infrastructure; and impact on publicunderstanding, engagement and wellbeing of broadand various kinds.

3.2 Up to now, mechanisms for enabling impact havebeen diverse. We will continue to promote theimpact of the research we support across the fullrange by developing ‘pathways to impact’, theprovision of ‘follow-on’ funding to developopportunities, and other means includingcommissioned research. But during the nextspending period the AHRC will take a more focusedand developmental approach to stimulating andincreasing impact.

3.3 The AHRC recognises that developing the societaland economic impact of arts and humanitiesresearch is a complex matter and will involve carefulpreparation and the need to work with researchersand HEIs to build awareness, methods andopportunities. We will undertake to do this over thenext spending period by, for example, working withHEIs on training, spreading good practice, buildingpartnerships and opportunities with the private andpublic sectors, and working with the fundingcouncils to align proposals with those in the REF.3

There is much to build on. An AHRC-commissionedreport by the Cambridge Business Research, basedon interviews with 21,000 researchers and researchusers, indicates that arts and humanities researchersalready engage in some areas (e.g. withcommunities) more than any other disciplinarydomain, and that a third of them work with theprivate sector.4

3.4 Over the next spending period, the AHRC will focusthe main thrust of its impact strategy on theCreative Economy5, coordinating activities throughthe network of ‘hubs’ as described below. Located inHEIs, these will be developed in partnership withnon-academic organisations in both the private andthe public sectors.

3.5 Why the Creative Economy? It is an increasinglystrong and forward-looking part of the nationaleconomy in the UK. Relative to GDP, the UK hasprobably the largest creative sector in the world.6

The creative industries account for over 6% of theoverall economy, contributing around £60Bn perannum with exports accounting for around £10Bn.With average growth of 6% per annum between1997 and 2005, the creative industries are growingtwice as fast as the economy as a whole. In mostBritish cities they account for between 2-8% of theworkforce, and in London in 2005 680,000 peoplewere employed in creative industries, accounting for15% of the workforce and a turnover of £25-29Bn.7

There is also a body of evidence indicating thatsignificant developments in the relationship betweenHEIs and the creative industries occur when there aresectoral or local clusters of activity to build readysynergy (e.g. Brighton, Dundee, London, Salford, the‘South-West Corridor’); when there is a high level ofinterdisciplinary interaction (e.g. between designersand computer engineers); and when there is well-targeted brokerage and investment by regionalbodies, Research Councils and HEIs.8 This argues forfocus and concentration of resource.

3.6 The AHRC will deploy the majority of its KnowledgeExchange budget to establishing centres or ‘hubs’for knowledge exchange in the creative and culturalindustries. These will be developed in collaborationwith industry leaders, TSB, Skillset, the new LEPs(Local Enterprise Partnerships) and others asappropriate. They will be centred on

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3 Other mechanisms include: greater developmental use of the ‘pathways to impact’statements; a significantly more prominent role for impact planning in the award ofstrategic funding (e.g. through ‘sandpits’); enhancement of postgraduate and earlycareer training in impact, communication and working in different environmentsthrough the BGP and other means (such as the AHRC’s collaboration with the BBC on‘Next Generation Thinkers’); building on the success of the AHRC’s CollaborativeDoctoral Awards; the strategic use of impact and policy fellowships; and disseminationby the Creative Economy ‘hubs’.

4 Alan Hughes and Michael Kitson, with Anna Bullock and Isobel Milner, KnowledgeExchange between Arts and Humanities and the Private, Public and Third Sectors: Acomparative perspective (Centre for Business Research, University of Cambridge,forthcoming March 2011).

5 The AHRC’s working definition of the Creative Economy is to be found in the openingKey Points.

6 Work Foundation, Staying ahead: the economic performance of the creative industries(UK: DCMS 2007) 16.

7 Figures quoted from Chris Atton et al., Creative Futures: Building the Creative Economythrough Universities (Edinburgh, Million+, 2008) 8-9.

8 L. De Propris, C. Chaplin, P. Cooke, S. MacNeill and J.Mateos-Garcia, The Geographiesof creativity: interim report (NESTA August 2009); Council for Industry and HigherEducation, The Fuse: igniting high growth for creative, digital, and informationtechnology industries in the UK (October 2010).

particular HEIs, will operate on a consortium basis,and be established by application and competitionin relevant centres of appropriate excellence in artsand humanities research. They will be charged withdeveloping programmes with a sectoral emphasis inthe Creative Economy and stimulating jointventures. Leveraging funding will be an essentialrequirement. We will also establish an overall co-ordinating function with a national remit. We havecommissioned two scoping projects to investigatebusiness needs in order to ensure integration.

3.7 In addition to their primary functions the ‘hubs’ willoffer best practice models for KE work more widelyand lift its reputation; capitalise on the expertise ofinstitutions with specialist remits which may nothave conventional research portfolios; enable otherinstitutions with less-developed expertise in theseareas to contribute under the consortium model;and act as a focus to integrate KE activity with otherAHRC and RCUK programmes (e.g. Centre forCopyright and New Business Models). Through the‘hubs’ and by other means, AHRC has set a target ofestablishing 30 sustainable partnerships withsignificant private sector enterprises over thespending period. These will include corporatepartners with whom we already collaborate (e.g. BBC, BT).

3.8 Alongside these engagements with the commercialsector, we will continue to develop our partnershipswith major public cultural institutions such as theArts Council, British Library and British Museumbearing in mind the very close synergies betweenthe private sector and public provision in the UKCreative Economy. Research funded by the AHRCfeeds directly into the output of, amongst others,broadcasters, exhibition organisers, publishers,designers, performers, and heritage and museumprofessionals. The AHRC will continue to developand showcase the feed-through from AHRC-fundedresearch which informs and can create major artexhibitions and TV and radio broadcasts, forexample.

3.9 The Creative Economy strategy will sit alongsideother AHRC activity to enhance value in translatingresearch into economic and societal impact.Cultural tourism is an organic and increasinglyimportant part of the UK economy. A recentVisitBritain report highlights the attractions ofBritish culture as follows: ‘It not only encompasses

traditional culture such as visiting museums, musicand theatre performances, galleries, culturalheritage etc., but also the way of life in a certain areaincluding aspects of language, beliefs, cuisine, dress,customs etc and the products that arise from it.’9

The report estimates that Britain’s culture andheritage attracts £4.5Bn worth of spending byinbound visitors annually, equivalent to more thanone-quarter of all spending by international visitors,and thereby underpins more than 100,000 jobsacross the UK. The AHRC will continue to prioritiseheritage development, promotion and managementas well as research for public use in, for example, artand design, music and theatre. Meanwhile, thequality, scale, variety and reputation of the arts andhumanities in the UK attract large numbers ofoverseas students bringing substantial economicbenefits.10 The AHRC will continue to promote thebenefits of UK as a destination for talented youngresearchers by enhancing the quality of researchtraining and provision in major centres ofexcellence.

3.10 The broader societal impacts of arts and humanitiesresearch are considerable. The contribution of AHRCplans to the ‘Big Society’ agenda are described inSection 2, as are other public policy impacts. TheAHRC will, with the ESRC, continue to support theBritish Academy Policy Centre, working on issuesranging from cultural heritage to family policy. TheAHRC will also continue to develop appropriatemethodologies for measuring and conceptualisingthe benefits of arts and humanities research,building on current work with the Home Office,DCMS, HEFCE/REF, HERA, individual projects suchas Liverpool ’08 and the National CoordinatingCentre for Public Engagement.

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9 (http://www.visitbritain.org/Images/Culture%20%26%20Heritage%20Topic%20Profile%20Full_tcm139-184566.pdf )

10 A recent survey demonstrates that international undergraduate and postgraduatestudents perceive the UK as having a strong reputation for academic quality, with 95percent rating the UK as an attractive or very attractive place to study based on criteriasuch as reputation of qualifications, and high quality teaching and research. (i-GraduateStudentPulse survey 2008, quoted in Million+, Universities and international highereducation partnerships: Making a difference (2009) 17.) We can estimate that the 80,000non-UK arts and humanities undergraduates and postgraduates studying in the UK in2008 made a direct contribution to the economy of approximately £1.309Bn: £621M intuition fees and £688M in living expenses. (More recent figures are not yet available fornon-UK students, so 2007/08 numbers are used with updated tuition fees andrecommended living costs.)

3.11 It is often said that the primary resource for researchimpact is the researchers we train and develop. Forinstance, it is emblematic that an estimated 1 in 3 ofall those working in the UK’s creative industries holda postgraduate qualification.11 Through the CreativeEconomy strategy, initiatives such as ConnectedCommunities, Care for the Future (for heritage) andthe Digital Economy programme, as well as themeasures described below, we will increasesignificantly the research interactions (including‘people flow’) between HEIs and external users andco-developers of projects. The AHRC stronglysupports RCUK’s strategy on ‘Impact throughpeople’ and Principle 3 of the ‘Concordat to Supportthe Career Development of Researchers’(‘Researchers are equipped and supported to beadaptable and flexible in an increasingly diverse,mobile, global research environment.’).12

3.12 The AHRC also strongly supports the principles andpolicies articulated in the ‘Concordat to Engage thePublic with Research.’ (2010)13 In line with theGovernment’s ‘Big Society’ agenda, and taking intoaccount the Government’s Science and Societypolicy to further co-ordinate activities aimed atengaging the public, the AHRC will continue tosupport the integrated programme of RCUK PublicEngagement with Research activities and work withother Research Councils to develop joint measures.(The detailed RCUK programme for the SpendingReview period will be finalised early in 2011.)Measures specific to the AHRC will include thosereferred to at 3.3-4 (and footnote) and 3.10 above.

17

11 Ball, L. et al. Creative Graduates, Creative Futures (London: Creative GraduatesCreative Futures HE Partnership 2010).

12 http://www.researchconcordat.ac.uk/

13 http://www.rcuk.ac.uk/cmsweb/downloads/rcuk/scisoc/ConcordatforEngagingthePublicwithResearch.pdf and http://www.publicengagement.ac.uk/why-does-it-matter/concordat

Section 4:Resources

18

4.1 The AHRC will deliver the priorities outlined in itsPlan by redistributing and re-focusing availableresource. Careful decision making will be necessaryand additional resource in one area will requirereduced or discontinued investment elsewhere. Thefocus on key priorities in relation to the AHRC’snational role is therefore the main strategic driver.

4.2 The AHRC strongly supports moves towards furtherharmonisation across the Councils and achievingincreased savings through shared services. Animportant context is the AHRC’s recent move to jointhe other Research Councils in Swindon. Thisenables increased opportunity for collaborativeworking, interdisciplinary synergy and a moreprominent leadership role for the AHRC in RCUK.From the point of view of this SR period, it has alsobeen timely in allowing the AHRC to reshape theorganisation.

4.3 The AHRC does not support any independentinstitutes or centres; nor does it make significant useof capital or large facilities.

4.4 Resource allocations for the four year CSR periodare as follows:

4.5 Expenditure will be as follows over the CSR period:

Notes:1. Administration figures have not yet been finalised.

2. Administration will include the costs of activities that either are or shortlywill be delivered by RCUK SSC Ltd. Work is ongoing on how best to deliverthe necessary administrative savings whilst minimising the impact on ourservice delivery. Until this has been completed, it is not possible toidentify specifically the element of our administrative budgets that will bespent on the service we receive from RCUK SSC Ltd. This will be a keyelement of our ongoing administrative expenditure and as such will besubject to close scrutiny to ensure we receive maximum value for money.

3. Dedicated Knowledge Exchange allocation excludes knowledge exchangeactivities delivered under the strategic research and post-graduatetraining headings (e.g. those embedded in strategic research programmesand centres, commissioned research and collaborative training awards).

4. International funding excludes international collaborative activitiesdelivered under the strategic research and post-graduate trainingheadings (e.g. those embedded in strategic research programmes andcentres and commissioned research).

4.5.1 The distribution of this funding can be displayed asfollows. First, by type:

4.5.2 then by theme:

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Resource (£m)

Depreciation/Impairments (£m)

Capital (£m)

2011/12

99.881

0.170

Nil in all years

98.370

0.165

98.370

0.152

98.370

0.151

394.993

0.638

Nil

2012/13 2013/14 2014/15 Total

Resource

Research

2011/12

£m %

51.2 51

2012/13 2013/14 2014/15

£m %

51.1 52

£m %

51.0 52

£m %

50.9 52

Postgraduate 44.1 44 42.6 43 42.6 43 42.6 43

InternationalEngagement

1.3 1 1.3 1 1.3 1 1.3 1

DedicatedKnowledge Exchange

3.5 4 3.6 4 3.7 4 3.8 4

Resource Income (0.23) (0.23) (0.23) (0.23)

Total 99.9 98.4 98.4 98.4

Administration (see note below)

Core Programmes

2011/12

£m %

36.9 72

2012/13 2013/14 2014/15

£m %

36.8 72

£m %

36.7 72

£m %

36.4 72

Strategic Themes 12.3 24 12.3 24 12.3 24 12.5 24

CommissionedResearch

2.0 4 2.0 4 2.0 4 2.0 4

Total 51.2 51.1 51.0 50.9

History, Thought& Beliefs

Core Programmes

2011/12

£m %

11.9 24

2012/13 2013/14 2014/15

£m %

11.9 24

£m %

11.9 24

£m %

11.8 23

Creative &Performing Arts

7.8 15 7.8 15 7.7 15 7.7 15

Culture &Heritage

7.8 15 7.8 15 7.7 15 7.7 15

Languages &Literature

9.4 18 9.3 18 9.4 18 9.2 18

Strategic Themes &CommissionedResearch

11.3 22 10.3 20 9.1 18 8.1 16

Cross Council(LLHWB, GU, DE,LWEC) & Centre forCopyright & BusinessModels*

ConnectedCommunities*

11.3

1.0

22

2

10.3

1.8

20

4

9.1

2.5

18

5

8.1

3.0

16

6

Total 51.2 51.1 51.0 50.9

* This is directly allocated funding not including funds under other strategicthemes.

4.5.3 and by cross-Council theme*

* Includes all funding modes, including directly allocated funding and fundingderived from strategic themes.

4.6 Economies and Efficiencies

4.6.1 We will become a more efficient and effectiveorganisation by:

• Delivering efficiency savings (including the specificmeasures noted below and through pay restraint)in line with government targets and expectationsover the CSR period;

• Implementing a significant reduction inadministrative costs under new governmentdirectives;

• An already-scheduled reduction of staff from 80 to69 over the 4 year period during the fullimplementation of the Shared Services Centre(SSC);

• Reducing SSC processing and transaction costswhich are included in the administrative baseline;

• Implementing public sector pay restraint measureswith any pay increases in line with the GDPdeflator;

• Processing all PG awards through BGPs rather thanopen competitions thus reducing costs;

• Continuously streamlining applications, peerreview, evaluation and administration processes toensure cost efficiency through fewer and largerawards;

• Using evaluation systems to ensure best value formoney while maintaining quality;

• Exploiting secondment, placement and otheropportunities to develop the skills and expertise ofour staff in key strategic areas such as partnershipworking in the creative economy;

• Continuing to work with RCUK towards furtherharmonisation, thus maximising benefits from therelocation to Swindon including the developmentof the SSC;

• Implementing, and developing further, theWakeham recommendations on indirect costs andindexation for Full Economic Cost (fEC) incoordination across RCUK, and work with HEIs toreduce the fEC of research whilst retaining acommitment to funding on the current fEC basis.We will work with RCUK partners to examinefurther options for driving efficiency savings whichwill be reinvested in research. It is expected thatthese recommendations will be implemented fromApril 2011. Further work will be carried out toinvestigate scope for additional savings.

4.7 Managing Demand

4.7.1 Managing demand is essential to reduce costs andthe wasteful use of resources. The AHRC will reducedemand significantly and raise overall quality andsuccess rates over the SR period. We have alreadytaken some steps to manage demand. For example,the introduction of rolling deadlines has reducedapplication volume and thus raised success rates;and ending the Open Studentships scheme to focuson BGPs eliminates 5,000 applications annually. Atthe same time, focussing on fewer BGP awards willalso reduce applications significantly.

4.7.2 In addition, during the next CSR period we will:

• Systematically collect, analyse and disseminate toHEIs and other bodies data on application trendsand success rates for institutions, schemes anddisciplines;

• This will be followed by strategic discussions withkey HEIs, focussing particularly on those fallingbelow the average, to develop self-management ofdemand and quality control of proposals inrelation to their current and (where available)historic performance;

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ConnectedCommunities

Digital Economy

Global Uncertainties

LWEC

Lifelong Health &Wellbeing

2011/12

£m

2.2

2.4

2.3

1.6

0.4

2.6

2.4

1.9

0.5

3.1

2.4

1.5

0.7

3.9

2.4

2.0

0.8

£m

3.7

£m

4.6

£m

5.5

£m

16.0

12.0

9.5

7.0

2.4

2012/13 2013/14 2014/15 Total

• Introduce sanctions if necessary if self-management proves ineffective (e.g. restrictionson frequency of submission; institution specificquotas);

• Tightened specifications on resubmissions andproduce generic written guidance for HEIs onmanaging applications based on best practice;

• Use more targeted schemes and programmes toinclude fewer, longer and larger awards (thusreducing overall volume); more focusedspecifications for thematic awards to discourageopportunistic bidding; inauguration of KE ‘hubs’ tofocus applications in this domain; redefinition ofthe Fellowship programme with a more specificremit;

• Develop new methodologies for making awards(including ‘sandpits’, ‘summits’, ‘highlight calls’,and expressions of interest) to promotecollaboration and innovation and to reduce thenumber of ‘open calls’.

4.7.3 These steps will be undertaken in coordination withmeasures across RCUK, including communications.Each Council is committed to improving theefficiency of the research funding system, and willset targets for reducing demand (and hencemaintaining or increasing the success rates of grantapplications) over the CSR period.

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For further information: www.ahrc.ac.uk Research Councils UK: www.rcuk.ac.uk December 2010

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Cover images from left to right: Stanza 2009, courtesy of Stanza, © Paul Basu, Institute of Archaeology, UCL, ‘Reanimating Cultural Heritage’ project, www.sierraleoneheritage.org, Textile Butterflies, courtesy of Helen Scalway (and background image), © Istockphoto.com/kr7ysztof, ‘A Malay native from Batavia at Coepang’ from ‘Hidden Histories’, © Royal Geographical Society-IBG