As universities in Manchester prepare to welcome new students, a new report by London Economics has revealed that higher education makes a £4.7bn contribution to the city’s economy.
Commissioned by Universities UK (UUK), the report further reveals that universities support 33,200 full time equivalent jobs across the city – 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: “Manchester is a thriving city 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 Manchester, 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.
Dr Gavan Conlon, Partner at London Economics, said: “There is no doubt about the contribution of the UK higher education sector to Manchester 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.
