It will satisfy government that the HE sector is accountable and acting transparently, and is therefore a responsible recipient of funding. It is likely to show a 'funding gap' which should help to influence the next comprehensive spending review. It will be used during policy reviews of the future of the dual support system. Institutions have varied in the costing information that they have used for their internal decision-making. With TR all institutions will now be able to use good information about areas needing subsidy or investment.
Many institutions plan to become increasingly independent of public funding.
To do this it is important that they are aware of the full costs of activities so that they can negotiate their prices with a good knowledge of what funding is needed from sponsors or from internal subsidies. Institutions, working on their own, have found it very difficult to turn this around. Your institution will have suffered from this, and the resources available to you to do your work will be less as a result. TR provides the opportunity for the sector as a whole to display its real costs, and its full indirect cost rates, calculated under a method that has been agreed by HM Treasury to be robust. As the sector implements the TR, a parallel activity is taking place on behalf of the sector to gain the acceptance of individual government departments, and the EU, to the TR approach, and eventually, to covering the full costs of activities.