The impact of universities on the UK & East Midlands economies

A big impact indeed

EconomicImpactOfHigherEducationInstitutionsLrg

This Universities UK report from earlier in the year on the impact of universities on the UK economy really is a very interesting piece of work which covers the sector’s increasing impact in terms of output, contribution to GDP, job creation, and overseas investment. It also looks at the knock-on effects of expenditure by universities, their staff, and international students. The report finds that in 2011–12, the UK higher education sector:

• generated over £73 billion of output – up 24% from £59 billion in 2009

• contributed 2.8% of UK GDP in 2011 – up from 2.3% in 2007

• generated 2.7% of all UK employment and 757,268 full-time-equivalent jobs

• generated £10.7 billion of export earnings for the UK

• received less than half its income from public sources

The report also compares HE’s contribution to GDP to that of other sectors:

Higher education’s contribution to GDP (O) is clearly significant. Further analysis was undertaken to assess the impact of universities on GDP compared with a number of other UK sectors. As Figure 11 shows, the higher education institutional contribution to GDP (O) in 2011–12 was comparable to that made by legal activities, greater than that of office administration and less than telecommunications. The industry figures were sourced from the ONS Use Tables for 2010 and hence should not be regarded as a direct like-with-like comparison as the higher education figures are for the year 2011–12. However, Figure 11 is broadly indicative and is helpful in illustrating the relative position of universities in terms of their contribution to GDP. This is an industry-to-industry comparison (ie the secondary GDP generated by the universities or their students is not included).

 

HE v other sectors

It’s a really impressive piece of work and reinforces the critical place of higher education in the UK economy. The report is also accompanied by a set of more detailed reports which examine the impact of universities on the economies of the English regions.

Looking specifically at the East Midlands there is an important section reminding us of the huge impact of international students on the local economy:

The current strength of East Midlands higher education institutions in attracting students from further afield to study in the region also means that they are attracting additional money into the region and boosting export earnings.

• In 2011–12 the region’s universities attracted over 25,945 students from outside the UK. The fees paid by international students to the universities are captured in the university accounts and their impact is included in analysis of the overall institutional impact at sectoral level. (Non-EU students alone paid the universities £221 million in fee income in 2011–12.) Payments to the universities for halls of residence accommodation, or money spent in university cafeterias, bars etc are likewise captured in the institutional impact. However, in addition to any fees or other monies they pay to the university, international students spend money off-campus. This can be on private sector rental, food, entertainment, consumer goods, travel etc. In 2011–12 this off-campus expenditure of international students was estimated as £293 million.
• The off-campus expenditure of international students generated £440 million of output (of which £358 million was in the region) and over 3,719 full-time jobs throughout the UK (of which 2,975 were in the East Midlands). International student expenditure generated £204 million of GVA in the UK. (£147 million regional GVA.)

The summary of the economic output of universities in the East Midlands includes some pretty big numbers:

East Midlands Impact

East Midlands Impact

All very helpful and interesting.

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The impact of universities on the UK economy

A big impact indeed

EconomicImpactOfHigherEducationInstitutionsLrg

This new Universities UK report on the impact of universities on the UK economy really is a very interesting piece of work which covers the sector’s increasing impact in terms of output, contribution to GDP, job creation, and overseas investment. It also looks at the knock-on effects of expenditure by universities, their staff, and international students. The report finds that in 2011–12, the UK higher education sector:

• generated over £73 billion of output – up 24% from £59 billion in 2009

• contributed 2.8% of UK GDP in 2011 – up from 2.3% in 2007

• generated 2.7% of all UK employment and 757,268 full-time-equivalent jobs

• generated £10.7 billion of export earnings for the UK

• received less than half its income from public sources

The report also compares HE’s contribution to GDP to that of other sectors:

Higher education’s contribution to GDP (O) is clearly significant. Further analysis was undertaken to assess the impact of universities on GDP compared with a number of other UK sectors. As Figure 11 shows, the higher education institutional contribution to GDP (O) in 2011–12 was comparable to that made by legal activities, greater than that of office administration and less than telecommunications. The industry figures were sourced from the ONS Use Tables for 2010 and hence should not be regarded as a direct like-with-like comparison as the higher education figures are for the year 2011–12. However, Figure 11 is broadly indicative and is helpful in illustrating the relative position of universities in terms of their contribution to GDP. This is an industry-to-industry comparison (ie the secondary GDP generated by the universities or their students is not included).

 

HE v other sectors

It’s a really impressive piece of work and reinforces the critical place of higher education in the UK economy. The report is also accompanied by a set of more detailed reports which examine the impact of universities on the economies of the English regions. All very helpful and interesting.

Universities ‘must be vigilant’ on campus extremism

Promoting academic freedom and tackling extremism

A new report from UUK is concerned with issues around freedom of speech, academic freedom and extreme views on campus. It’s a good report (but I was on the working group so perhaps biased) and received some straightforward coverage from the BBC News:

The updated guidance from Universities UK sets out the legal duties universities have to protect freedom of speech and also to promote equality and security.

Professor Malcolm Grant, chairman of the review panel, said: “The survey findings confirm how seriously universities take their responsibilities in relation to the safety and security of their staff and students, alongside their obligations to protect and promote free speech and academic freedom.

“Universities are open institutions where academic freedom and freedom of speech are fundamental to their functioning.

“Views expressed within universities, whether by staff, students or visitors, may sometimes appear to be extreme or even offensive. However, unless views can be expressed they cannot also be challenged.

“But all freedoms have limits imposed by law and these considerations are vital to ensure the safety and well being of students, staff and the wider community.

“Universities must continue to ensure that potentially aberrant behaviour is challenged and communicated to the police where appropriate.”

But he added that it was not the job of universities to impede the freedom of speech “through additional censorship, surveillance or invasion of privacy”.

The coverage of the report, which can be downloaded as a PDF, is broad:

The report starts by examining the meaning of academic freedom and freedom of speech: concepts which are often invoked but rarely defined. It then explores the contemporary context in which universities are operating, both in terms of the diversity of current student populations, and the wider national environment. It summarises the relevant law, and describes the Government’s security strategy and other security initiatives and structures. It then reviews the various ways in which universities from across the UK have addressed these challenges and sought to reconcile differing priorities, drawing on an on-line survey conducted by Universities UK of all its members in 2010.

But the Guardian carries a somewhat critical view from Lord Carlile:

The government’s counterterrorism watchdog believes Britain’s universities are reluctant to deal with radicalisation on campus and says a report by vice-chancellors that rejects demands to ban controversial speakers is “weak”.

Lord Carlile, who is in charge of overseeing the government’s counterterrorism strategy, Prevent, urges ministers to develop a “new narrative” for combating extremism, supporting moderate Muslim theologians against al-Qaida. “You have to meet like with like,” he says.

He is scathing about the conclusion reached by Universities UK, representing 133 universities – and says their report contains a “glaring omission”. He told the Guardian: “[There] is a total failure to deal with how to identify and handle individuals who might be suspected of radicalising or being radicalised whilst within the university.”

But this is not a “weak” report and universities are far from complacent on this issue – institutions take their responsibilities in relation to the safety and security of their staff and students extremely seriously, alongside their obligations to protect and promote free speech and academic freedom. We can do with a bit less of the “new narrative” and a bit more support of the good work that is undertaken.

More visa uncertainty

Position on visas still not clear

The Guardian has a story on the latest government position on changes to the visa regime.

Whilst on the face of it there does seem to be some movement in response to the concerns expressed by universities, there are still significant uncertainties:

But young scientists applying for visas may face serious difficulties because their incomes are often so low. Previously an MBA or a £150,000 salary guaranteed enough points to secure a visa, but a PhD scientist on a typical academic salary fell short. Scientists are concerned that the government will fail to address this disparity under the new scheme. A further problem is that scientists are awarded three-year visas for posts that can last much longer, forcing institutes to use two consecutive visas for each researcher.

“The average postdoc here lasts four or five years, so each consumes two slots and that is crazy. There are people here who are very nervous about whether they will be allowed to stay and finish their work,” Rigby said. “It is bound to be a disincentive for bright young things to come to this country.”
visa
Catherine Marston, policy adviser at the Universities and Colleges Union, echoed Rigby’s concerns. “It causes difficulties for people who are already here in the UK. If their visa runs out, they will use up one of your allocation if you decide to support them. If you don’t decide to support them they will have to leave the country.”

Professor Rigby said the government must revise its “one size fits all” approach to immigration. He said the rules should be changed to accommodate scientists by giving PhDs more points and awarding visas for the full duration of an academic post.

The uncertainty doesn’t help. It sends out the signal that UK HE is not open for business. The proposed changes to student visas are likely to exacerbate this. Hard times indeed.

NB, Catherine Marston is the most excellent policy advisor at Universities UK, not UCU as stated in the report.

External Examiner review (and quality and standards)

Universities UK is to undertake a review of external examining

A press release from Universities UK gives some background to the recently announced review of external examiners:

In his keynote speech at the Universities UK Annual Conference, President Professor Steve Smith announced that UUK, together with GuildHE and in collaboration with agencies such as the Quality Assurance Agency (QAA) and the Higher Education Academy (HEA), would lead a UK-wide review of external examiner arrangements. This review will seek to ensure that the system remains robust, recommending any improvements uniuk240px
which would continue to support the comparability of academic standards and meet future challenges.

The Group, which will be chaired by a Vice-Chancellor (to be announced) and include representatives from across the sector, will address various issues, including:

  • The need to develop Terms of Reference for the role, to support consistency
  • Reinforcing the specific role of external examiners in ensuring appropriate and comparable standards
  • Analysing the level of support given by institutions to external examining, both financial and professional
  • Current and future challenges and changing practice (such as modularisation) and their implications for external examining
  • Comparing the UK system with international practice

After 12 months, the Group will produce a report, highlighting the immediate short-term improvements, as well as longer term challenges and how these should be addressed.

Meanwhile, HEFCE has just announced the outcome of a study on quality and standards which has been picked up by the BBC. Its recommendations include:

  • a review is needed of publicly available information provided by higher education institutions (HEIs) to meet the needs of students, parents, advisers and professionals
  • a complete review of the external examiner system should be undertaken
  • the degree classification system should be improved so that it better reflects student achievement.

Looks like there will be a bit more work then beyond external examiners but these do not seem to be hugely challenging tasks (indeed they have been on the agenda for some time) and reflect the conclusions of the HEFCE report that “There is no systemic failure in quality and standards in English higher education (HE), but there are issues needing to be addressed”.

This UUK external examiner review, supported by the HEFCE study, represents a speedy response to the recent (truly dreadful) report of the IUSS Select Committee. The IUSS report recommends the implementation of one of the 1997 Dearing recommendations, rejected at the time, on the creation of a national system of external examiners. It is to be hoped that the UUK review arrives at something sensible. (For anyone with a longish memory on these things it feels a bit like 1994-95 again and the Graduate Standards Programme and its reviews of external examining.)

Graduates preparing for work (where available)

From the BBC:

Students should get work experience to boost their chances of getting jobs in the downturn, the head of the CBI says. Richard Lambert says students must get skills and first-hand experience of work while still at university.

In launching the report with Universities UK on preparing graduates for the world of work, Lambert said competition for jobs in 2009 will be particularly intense. The report, ‘Future Fit’, also includes a survey of graduate recruiters and HE institutions. As the BBC says:

Of the 581 recruiters surveyed for the report, 78% rated employability skills, such as team working, as essential. And of the 80 higher education institutions which responded to the report’s survey, 91% thought it likely or highly likely their graduates would acquire five out of the seven desired employability skills while at university.

Those employability skills in full:
snapshot-2009-03-30-16-13-53

    Self-management
    Team working
    Business and customer awareness
    Problem solving
    Communication and literacy
    Application of numeracy
    Application of information technology

But also an entrepreneurial approach and a ‘can do’ attitude are valued by employers. Without wishing at all to be cynical It is possible that we could have guessed the content of the list without the survey though. Moreover, universities are unlikely to suggest that their graduates aren’t, by and large, going to acquire these skills.

It’s an interesting report and highlights the value which students and their future employers can get from developing such skills further – especially when the learning is accredited. It also notes the difficulties for both universities and SMEs of pursuing this agenda with companies which are smaller.

Suspect the survey behind the report was undertaken before the economy fell off a cliff but it is helpful nevertheless and arguably even more relevant.