Universities' economic value highlighted in new report

UK higher education and research makes a total net contribution of £265 billion to the economy, a new study has found. 

Published Thursday, 5 September as the Universities UK annual conference takes place at the University of Reading, the report by London Economics, commissioned by Universities UK, reveals the substantial economic footprint of the UK higher education sector. For every pound of public investment in universities, £14 of economic impact is generated. 

The report also found that every graduate contributes £75,000 more to the economy through higher tax and national insurance contributions than the cost of subsidising their studies. 

Previous research shows that the University of Reading alone contributes £1 billion a year to the economy, with around half of this staying in the Reading area, according to the University of Reading's economic impact report. 

This also showed that international students alone at Reading spend an estimated £46 million off-campus each year, significantly boosting local economies. 

Professor Robert Van de Noort, Vice-Chancellor of the University of Reading, said: "The economic impact of universities is clear to see and extends far beyond our campuses, reaching deep into local communities and the national economy. 

"Our institutions are catalysts for innovation, cultural exchange, and economic growth. By nurturing both domestic and international talent, we're not just educating individuals, we're investing in the UK's future. The exceptional return on investment is testament to the sector's efficiency and its role in driving economic, social and cultural prosperity. 

"As we face global challenges, universities stand ready to lead the way in research, innovation, and preparing the workforce of tomorrow."

The Universities UK annual conference brings together the leaders of the UK's universities is taking place at the University of Reading and concludes on Friday, 6 September. 

Read the London Economics report 'The Economic impact of higher education, teaching, research and innovation'