UK economy gets £59bn boost from universities

Published on Tuesday 3 November 2009 19:46

UNIVERSITIES now generate £59 billion for the UK economy, putting the higher education sector ahead of the agricultural, advertising, pharmaceutical and postal industries, according to figures published today.

A report, produced for the umbrella body Universities UK by Strathclyde University, found that, in 2007-8, the higher education sector spent 19.5bn on goods and services produced in the UK, which generated more than 59bn of output. The figure four years ago was nearly 45bn, meaning there has been a 25 per cent increase.

It also created more than 668,500 full-time equivalent jobs in the UK economy.

Researchers found the total revenue earned by universities amounted to 23.4bn, compared with 16.87bn in 2003-4.

Gross export earnings for the higher education sector were estimated at more than 5.3bn and the amount international students and visitors spent off-campus amounted to 2.3bn.

Ursula Kelly of Strathclyde University, the report's co- author, said: "

The results highlight the increasing policy significance of higher education, both in terms of its contribution to GDP and its relative effectiveness in generating economic impact."

Professor Steve Smith, president of Universities UK, said: "These figures show that the higher-education sector is one of the UK's most valuable industries.

"Our universities are unquestionably an outstanding success story for the economy."