PARTIALLY ACCEPT We want to embrace the diversity of the sector, recognising each provider’s unique contribution, and encouraging them to capitalise on their comparative advantage. As set out in the Post-16 Skills White Paper, we are reforming the Strategic Priorities Grant (SPG) to ensure that high-cost subject funding is more effectively targeted towards priority provision that supports future skills needs and the Industrial Strategy. As part of the reform work, we will carefully consider where funding is best targeted taking into consideration factors such as cost and strategic importance. We recognise the importance of ensuring the continued provision of strategically important subjects across the higher education sector, including in areas where provision may be at risk. We are working with the Office for Students to explore improvements to access and regional collaboration, as set out in the Post-16 Skills White Paper, to help support provision across the country. We expect that the Office for Students will consult the sector on the allocation of SPG funding later this year.