University of Exeter brings £600m to SW
The University of Exeter could be responsible for bringing more than £600 million to the South West’s economy each year according a new survey released by the university industry.
The survey conducted by Universities UK (UUK), an university industry body seeks to quantify the economic benefit universities bring to area by looking at the money generated by jobs and student spending.
The study claims that the total economic boost from the South West’s higher education institutions in 2011-12 was £1.7 billion, with £600 million coming from the University of Exeter alone.
Geoff Pringle, Chief Operating Officer at the University of Exeter commented: “Recent studies in the UK have highlighted the importance of higher education to the national economy but it has been difficult to quantify the impact regionally - until now.
“The University of Exeter contributes not only financially to the region but also by providing a graduate workforce that raises productivity and stimulates economic growth.
“The opportunity is now to work collaboratively with both business and government, exploiting and supporting regional specialisations, to deliver even more regional success in the future for the South West.”
Universities also provided 20,522 full-time equivalent jobs across a range of occupations.
In total, when added together with the expenditure of both international students and students from the rest of the UK who re-located to study in the South West, the Universities generated 51,780 jobs in the region.
The study suggests that for every 100 full-time jobs within the universities themselves, another 117 full-time-equivalent jobs were generated through ‘knock-on effects’ such as increased local spending or building projects by the institution.
University Exeter has, in recent years, invested more than £350 million worth of new facilities across its campuses- such as the Forum in Exeter- and now plans to invest another £330 million by 2016.
Nationally the study claims that 373,794 full-time-equivalent jobs in other sectors of the UK economy were dependent on the expenditure of the universities.
Professor Sir Christopher Snowden, President of Universities UK, said: “It is clear that universities are making an increasingly significant contribution to the UK economy, both in terms of contribution to GDP and creating jobs. The sector also attracts significant investment from overseas.
“While the study looked at only one aspect of economic impact, we should not forget also the major contribution to the wider economy from producing skilled graduates and generating ground-breaking research. Universities also produce significant non-economic benefits. They improve the life chances of individuals and also provide a social and cultural boost to communities through access to art, music, sports and other facilities.
“With the 2015 general election on the horizon, this report serves as a timely reminder to policymakers of universities’ growing impact on local communities, jobs and the wider economy.”
The study is followed by last week’s news that the number of overseas students at English universities has fallen for the first time in nearly 30 years as tougher visa rules and higher fees put off potential international students.
The study from the Higher Education Funding Council for England (HEFCE) showed that numbers of international students fell to 307,205 in 2012 from 311,800 in 2011, despite an overall increase in the number of international students across the world.
When taken alongside the UUK study this drop would suggest a significant economic cost to this loss of the international market share.
