The University of Winchester has welcomed the publication of a new report showing the significant economic impact of the UK’s universities.
In their latest report, London Economics analysed the impact of the UK higher education sector and showed that it makes a total net contribution of £265 billion to the economy.
The report looked at the impact of universities’ teaching, research, and innovation activities on the nation’s economy, focusing on the 2021-22 academic year.
Research found that the public purse makes an average profit of £75,000 per graduate, even after the costs of subsidising their studies was taken into account, because of the higher tax and national insurance contributions they make.
The report references a study in May which showed the economic benefit of international students which rose from £31.3bn to £41.9bn between 2018/19 and 2021/22 and that every 11 non-EU students generates £1m worth of net economic impact for the UK economy.
It also breaks down the economic benefit of higher education by region. In the south-east, the sector generates £36.3 billion. Previous studies have shown that the University of Winchester contributes over £266 million to the regional economy.
The University of Winchester’s Vice-Chancellor, Professor Sarah Greer, said: “We welcome this report which shows the significant contribution that universities make to the nation’s economy.
“Universities are a national asset, educating our young people, creating wealth and enriching society. As well as making a significant contribution to the local economy, the University of Winchester also plays an important role in creating a healthier, happier and more cohesive community.
“We have a long-standing record in producing outstanding graduates including nurses, teachers*, midwives, physiotherapists, social workers and police officers, who all make such a positive impact on our society.”
The report also calls out a body of evidence showing the range of wider benefits, to both graduates and society, of a university education. These include increased work productivity for both the graduates and their co-workers, improved health outcomes and a lower chance they will be involved in crime.
The report was commissioned by Universities UK, which represents 141 universities, and holds its annual conference this week.
Professor Dame Sally Mapstone DBE FRSE, Principal and Vice-Chancellor of the University of St Andrews and President of Universities UK said: “Universities have always been a driving force for boosting growth and opportunity whether directly or indirectly. This latest report reveals for the first time the full scope of the impact of universities and clearly demonstrates the importance of the sector to the economy and society at large.
“It is clear we are at a fork in the road. We can choose to act to ensure our universities thrive, or we can allow them to slide into decline. For me, the latter path would be unconscionable. The figures released today will inform work underway by a leading group of experts within and outside higher education, exploring how universities can address the UK’s greatest priorities and challenges, especially around growth, opportunity and supporting delivery of the Government’s missions.
“Our blueprint, which will be published in the coming weeks, will set out plans for a 're-set' of the university sector including a re-balancing of responsibility for funding in England to recognise the significant benefits to the Treasury generated by graduates."
The London Economics findings will be part of Universities UK’s ‘blueprint’ for the role universities can play in powering the new government’s growth strategy. The ‘blueprint’ which includes contributions from Lord Peter Mandelson and the CBI’s Chief Executive Rain Newton-Smith is due to be published this autumn.
* In May the University of Winchester’s primary and secondary teacher training was rated ‘Outstanding’ by Ofsted. For more details visit Media Articles - University of Winchester
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