This document outlines the strategic plan of the Higher Education Funding Council for England (HEFCE) for the years 2001 through 2006. The mission of the HEFCE is to promote and fund high quality, cost-effective teaching and research, meeting the diverse needs of students, the economy, and society. To achieve this mission, the HEFCE intends to develop and sustain effective partnerships with institutions, employers, other funding bodies, and professional bodies. The HEFCE also plans to advise government and other stakeholders on higher education issues and to help make known the opportunities offered by higher education. The HEFCE also aims to promote and support interaction between higher education and business. To support high quality cost effective teaching and research, the HEFCE will promote high standards of education and research and promote effective financial and human resource management. With regard to diversity, the HEFCE will encourage institutions to increase access, secure equal opportunities, support lifelong learning, and maximize achievement for all who can benefit from higher education. The HEFCE also plans to maintain and encourage the development of a wide variety of institutions with a diversity of missions for diverse students. Appendix A contains financial and resource information, and Appendix B charts progress toward key performance targets published in HEFCE's 2000-05 strategic plan. Appendix C is a glossary. (SLD)