Introduction

The Engineering and Physical Sciences Research Council (EPSRC) was established by Royal Charter under the Science and Technology Act 1965, and began operations on 1 April 1994. It was founded as part of a reorganisation of the Research Councils, following publication of the 1993 Government White Paper 'Realising Our Potential' (Cm 2250).

The objectives of the EPSRC are:

• to promote and support, by any means, high quality basic, strategic and applied research and related postgraduate training in engineering and physical sciences (chemistry, physics and mathematics);

• to advance knowledge and technology, and to provide trained scientists and engineers, thereby meeting the needs of users and beneficiaries and contributing to the economic competitiveness of the United Kingdom and the quality of life;

• to provide advice, disseminate knowledge, and promote public understanding in the fields of engineering and the physical sciences.

The Council of EPSRC, comprising a part-time, non-Executive Chairman, a full-time Chief Executive and Deputy Chairman, and twelve other members, is responsible for establishing overall policy and strategy. In determining scientific priorities, it is assisted by panels of peers from academia, industry, commerce and government.

The EPSRC budget is predominantly used to fund research grants and postgraduate education and training awards, primarily in the UK universities, and the use of large-scale national and international facilities.

Achievements in 1996/97

EPSRC has continued to introduce changes in its operations, with a view to making its processes faster, more responsive and more open. These changes have also enabled substantial administrative savings to be made, both internally and externally within the university system.

Emphasis is placed on meeting the needs of the users of the research and training which is funded. Various programmes and schemes have been established which aim to foster partnerships between academia and industry.

Consultation with users, and other stakeholders, has also been expanded, in a targeted way, to improve the understanding of user needs and to ensure that programme developments can reflect both industrial priorities and technical opportunities.

Competition for research funding is seen as an important factor in maintaining the health of the UK's science and engineering base. A number of initiatives have been taken to open up the market for research provision. These include accepting proposals, in specific areas, from research and technology organisations outside the university sector, the introduction of a 'fast-track' funding scheme for young researchers, and measures aimed at making the EPSRC system fully accessible to applicants irrespective of gender.

An important measure of EPSRC's effectiveness is the contribution which the supported research and training outputs make to competitiveness and to national quality of life, including the Government's Extending Quality of Life Initiative (EQUAL). While examples of scientific highlights associated with EPSRC-funded research are described in the EPSRC's Annual Report, systematic evaluation of the balance of the entire research portfolio is undertaken on an annual basis to assess effectiveness and to guide on-going identification of priorities.

Plans for 1997/98

In 1997/98, EPSRC will take steps to further improve the efficiency and effectiveness of its programme delivery processes. Continuing rationalisation of programme management arrangements will increase flexibility and responsiveness, whilst reducing costs. A new 'Faraday Partnership' initiative will facilitate access to the university system by a range of user companies, especially small and medium-sized enterprises. Effective exploitation of research will also be encouraged through the dissemination of best practice guidance. Across all activities, the implementation of more systematic evaluation practices will provide greater assurance about the quality and impact of the research and training outputs which result from EPSRC funding.

Emphasis will continue to be placed on improving public understanding of the research process, particularly amongst school-children. Initiatives will include the sponsorship of touring displays, continuing support for the 'Pupil Researcher Initiative' and the encouragement of broader dissemination of research results by EPSRC-funded investigators.

Key Performance Targets
	1994/95		1995/96		1996/97		1997/98
Key Measure	Set	Achieved	Set	Achieved	Set	Achieved	Set
Proportion of Budget spent on Administrative Costs (%)	5.4	5.2	4.9	4.9	4.5	4.5	4.2