As universities in the East Midlands prepare to welcome new students, a new report by London Economics has revealed that higher education makes a £6.3bn contribution to the region’s economy.
Commissioned by Universities UK (UUK), the report further reveals that universities support 53,800 full time equivalent jobs across the East Midlands – this includes those employed by local businesses such as restaurants and retailers who benefit from the economic stimulus universities create.
However, as the sector contends with challenges including a £1bn funding hole in domestic student tuition fees and the pressures created by the cost of living crisis, UUK says there is a pressing need to reform how universities are supported in order to sustain their positive economic impact.
Professor Dame Sally Mapstone DBE FRSE, President of Universities UK and Principal and Vice-Chancellor of the University of St Andrews, said: “The East Midlands is a thriving region with universities at the beating heart of so many of its local communities.
“As economic hubs in their own right, universities support and create a huge number of jobs across multiple sectors, meaning people up and down the country benefit financially, whether or not they have a degree. They also play a crucial role in creating the graduates, spin outs and start-ups that provide the basis for economic growth in future.
“The country’s continued investment in higher education institutions can and does pay back dividends; not just for the East Midlands, but the entire UK.”
Looking at the UK as a whole, universities support more than three quarter of a million jobs (768,000 full-time equivalent) and contribute £116bn to the UK economy – this rises to £130bn when the spending of international students is included.
The benefit to sectors from university activities in the 2021-22 academic year, across the UK are:
|
|
Economic Output |
FTE jobs |
|
Agriculture |
£0.6bn |
6,400 |
|
Production |
£12.6bn |
39,800 |
|
Construction |
£2.7bn |
9,200 |
|
Distribution, transport, hotels, and restaurants |
£15.4bn |
127,000 |
|
Information and communication |
£3.7bn |
16,000 |
|
Financial and insurance |
£6bn |
15,300 |
|
Real estate |
£9.7bn |
12,000 |
|
Professional and support activities |
£9.2bn |
74,700 |
|
Government, health & education |
£52.8bn |
444,200 |
|
Other services |
£2.9bn |
22,500 |
* Note: Totals may not add due to rounding.
Source, London Economics report.
The figures come as Higher Education Statistical Agency figures show a record 17,933 student start-up businesses now operate in the UK, while the National Centre for Entrepreneurship in Education (NCEE) forecast universities will help attract more than £2bn in funding for local regeneration projects.
Dr Gavan Conlon, Partner at London Economics, said: “There is no doubt about the contribution of the UK higher education sector to the East Midlands and the rest of the UK’s economy. With approximately 2.9 million students and 385,000 staff across almost 300 higher education providers, the sector is instrumental in driving economic growth in both the short run and longer term.
“Given the financial challenges institutions face, there is a need to provide both adequate resources to support teaching and learning activities, but also certainty in respect of research funding.”
Aside from producing a talent pool with highly sought after skills, universities provide local businesses and small enterprises with product development support, access to new markets, consultation services, incubators and research facilities and work with organisations to provide jobs for local people within their communities.
