The Economic Impact of the University of the West of England

THE ECONOMIC IMPACT OF THE UNIVERSITY OF THE WEST OF ENGLAND

The economic impact of the University of the West of England

TABLE OF CONTENTS

Executive summary 4

1. Introduction 6

2. Employment contribution 10 2.1 Total employment 10 2.2 The University’s own employment 11 2.3 Supply chain and consumer spend contribution 13 2.4 Student subsistence spending 15 2.5 Spending of visitors 15

3. GDP contribution 16 3.1 Total GDP contribution 16 3.2 Direct GDP contribution 17 3.3 Supply chain and consumer spend contribution 18 3.4 Student subsistence spending 19 3.5 Spending of visitors 19

4. Tax contribution 22 4.1 Total contribution 22 4.2 University and staff contribution 23

5. UWE Bristol graduate talent 24 5.1 The University as a supplier of skilled labour 24 5.2 Graduates in key worker roles 26

6. Conclusion 28

7. Methodological appendix 30

MARCH 2017 1 The economic impact of the University of the West of England

UWE BRISTOL’S IMPACT ON THE WEST OF ENGLAND’S ECONOMY UWE Bristol is the largest university in the West of England, with over 27,000 students and supporting over 8,000 jobs in the region 2014/15 OVER DIRECTLY EMPLOYED 27,000 3,549 STAFF STUDENTS

SUPPORTED OVER

8,280 JOBS IN THE REGION

1,600 £400 MILLION NEW STUDENTS CONTRIBUTION TO THE FROM LOW WEST OF ENGLAND PARTICIPATION ECONOMY AREAS

TOTAL TAX CONTRIBUTION STUDENTS GRADUATED FROM 6,722 UWE BRISTOL, INCLUDING: MILLION £88.7 934 nurses/health 373 250 TO THE UK EXCHEQUER professionals engineers computer scientists

The economic impact of the University of the West of England

EXECUTIVE SUMMARY

This report describes the economic impact of UWE Bristol focusing in particular on the West of England. This includes the four local authorities of Bath and North East Somerset, the jobs City of Bristol, South Gloucestershire and North Somerset— 8,280 the area covered by the West of England Local Enterprise Partnership. Supported by the University of the West of England and its students with in the West of England in 2014/15. UWE Bristol is the largest university in the South West over 27,000 students, 250,000 alumni and 3,000 staff. Its students come from all over the UK, and from 140 different countries around the world, adding to the diversity of both UWE This is equivalent to one in every Bristol and the local community. 79 jobs in the local area. This work explores the contribution that UWE Bristol made to its local economy in 2014/15 (the latest date for which comprehesive data are available), in terms of the jobs and the GDP it generated but also in the considerable contribution that it made to public finances through the taxes that accrued to government as a result of its activities.

UWE Bristol supported over 8,280 jobs in the West of England in 2014/15—equivalent to one in every 79 jobs in the area. The University itself employed 3,549 people. In 2014/15, an additional 1,330 jobs were supported in the University’s supply chain and through the wage-financed expenditure of its staff and those in its supply chain. This means that UWE Bristol had an ‘employment multiplier’ of 1.37: for every 100 jobs at the University, it generated another 37 jobs elsewhere in the local economy. Students’ subsistence expenditure and visitors to the University’s students supported a further 3,400 jobs.

The University’s employees are concentrated in the local area. In 2014/15, 2,830 of the University’s staff (80 percent of the total) lived in the West of England area. Another 410 (or 12 percent of the total) lived in the wider South West. The University employs people across the skills spectrum. Half of the staff were academic staff employed in faculties, with the remainder providing services.

4 The economic impact of the University of the West of England

In total, the University is estimated to have generated a gross value added contribution of over £400 million to the West of England’s GDP in 2014/15. This is equivalent to 1.3 percent of the city-region’s economic output. Of this, the University itself contributed £241 million and the University’s additional students £400.1m and their visitors contributed the remaining £159 million.1 Economic contribution to the West of England economy in 2014/15. In 2014/15, UWE Bristol supported a total tax contribution of £88.7 million to the UK Exchequer. Some £52.7 million was directly generated by the University itself—equivalent to £47 This is equivalent to 1.3 percent of for every resident in the West of England. This included national the economic output in the area. insurance contributions paid by both the University and its employees, income tax, indirect taxes (such as VAT) and council tax paid by staff. To give an indication of scale, the £88.7 million contribution to tax revenues is sufficient to pay for the Avon Fire Brigade’s running costs for almost two years.

In 2015, 6,722 students graduated from UWE Bristol, meeting the needs of businesses and other employers in the West of England and beyond. They included 934 nurses and other health professionals, 373 engineers, and 250 computer scientists. Over 96 percent of UWE Bristol graduates were in work or further study six months after leaving the University compared with 94 percent nationally. Some 78 percent of graduates were employed in managerial and professional roles compared with 71 percent nationally.

1 Additional students include students who came from outside the West of England to live in the area while studying and students originally from the West of England who chose to stay because of the University. 5 The economic impact of the University of the West of England

1. INTRODUCTION

In educating students across • Chapter 4 calculates the a broad range of disciplines— contribution to public from arts to health sciences and finances that flows from the law; business to engineering— economic activity stimulated UWE Bristol undertakes a range by the expenditure of the of expenditure that stimulates University, its students and economic activity across a their visitors. broad spectrum of industries in Chapter 5 sets out the the West of England. • University’s contribution to the supply of graduate skills This report investigates the and the particularly high economic contribution that proportion of UWE Bristol UWE Bristol, its students, graduates who secure staff and visitors make to the employment. West of England.2 It does so by looking at the additional It is, however important to expenditure the University remember that the University’s and its students bring to the contribution to the city- local area. This in turn boosts region and its economy goes employment, output and tax far beyond these immediate receipts at many businesses impacts. While no attempt across the city-region. is made to quantify these non-expenditure related To investigate this contribution, contributions, the strong and each chapter of the report growing importance of the looks at a different metric: University and the active part • Chapter 2 examines the it plays in the development University’s contribution to of the city-region and the employment in the city- wider South West should be region in 2014/15 as a result acknowledged. of the spending impacts that are outlined in the box on page 8. • Chapter 3 investigates the gross value added contribution to GDP supported by the expenditure of the University, its students and their visitors.

2 The West of England city-region includes the local authorities of Bath and North East Somerset, Bristol, North Somerset and South Gloucestershire—the same area is covered by the West of England Local Enterprise Partnership. It has a population of over 1.1 million 6 people and economic output of some £29 billion. The economic impact of the University of the West of England

UWE Bristol is strongly The University makes a major The University’s 3,500 committed to ‘Research with contribution to innovation, staff and 27,800 students Impact’, with the objectives knowledge exchange and also contribute to the of “World-class performance business growth. UWE local community through in selected areas of research Bristol’s iNet innovation UWE Bristol’s volunteering that meets the needs of programme supported around programme. The University a sustainable economy 1,650 businesses, generating promotes volunteering and society and feeds the nearly 1,000 jobs, more than opportunities in a number of scholarship and enquiry 500 new products and £28 fields, ranging from creative underpinning our learning and million in gross value added. to conservation projects. teaching.”3 According to the Other fast-growth high- Across the board, students results of the 2014 Research technology businesses have are encouraged to share their Excellence Framework (REF), benefitted from Innovation skills and broaden their life 61 percent of all research at for Growth, a £7 million R&D experience to help others; for UWE Bristol was considered to support scheme run by UWE example, computer science be ‘internationally excellent’ or Bristol and financed by the students have the chance ‘world leading’ in quality while government’s Regional Growth to share their expertise at IT 79 percent was rated as having Fund, now in its second phase. schools for the elderly in the a ‘considerable’ or ‘outstanding’ In September 2016, UWE local community. impact in economic and social Bristol opened ‘Future Space’, terms.4 The recently published one of only four University UWE Bristol is also working to Guardian University League Enterprise Zones nationally, address inequality in access to Tables 2017 showed the which provides business higher education across the University rising 11 places from acceleration, start-up and region, where participation last year, reflecting increased grow-on space for businesses in higher education ranges student satisfaction with the and promotes collaboration from five percent in some quality of teaching, feedback between businesses and areas to 90 percent in others. and assessment by lecturers, university researchers. The University is one of the and also increasing numbers of UK’s largest investors in graduates securing professional With a large-scale widening participation, having and managerial jobs.5 commitment to the training committed £15.8 million in of nurses and other health 2014 to promoting access Its broad partnerships with professionals, and strong and supporting students from industry and its commitment research in health and applied disadvantaged backgrounds. to the widening participation sciences, the University works More than 1600 new entrants agenda secured the University particularly closely with to UWE Bristol each year praise in the 2015 QAA review.6 local health trusts, Bristol come from backgrounds with UWE Bristol also helped to Health Partners and the local low participation in higher win Bristol recognition as the Academic Health Science education. The UWE-funded European Green Capital for Network. West of England Children’s 2015, creating a wide range of University delivered by UWE opportunities for the whole Bristol encourages more than city-region.7 2500 children to take part in learning outside of school.

3 UWE Bristol, “UWE Research Strategy 2020”, January 2016. 4 “Research Excellence Framework (REF) 2014”. 5 The Guardian, “University league tables 2017”, 23 May 2016. 7 6 Quality Assurance Agency for Higher Education, “2015 QAA Review”. 7 Vice-Chancellor UWE Bristol Professor Steve West, “Civic Leadership, Innovation and Economic Growth”, Powering the Knowledge Economy: Universities, Cities, Innovation, Universities UK Conference Woburn House Conference Centre, 3 March 2015. The economic impact of the University of the West of England

INTRODUCTION TO ECONOMIC IMPACT ANALYSIS

This study undertakes a standard economic The indirect and induced impacts are impact assessment of three forms of calculated using multipliers derived from local expenditure that flow out from the University, input-output tables, by combining ONS (2014) stimulating economic activity across the city- UK-wide input-output data with a technique region (Fig. 1).8 developed by Flegg, Webber and Elliot (1995).9 Employment and tax estimates are calculated The first channel of impact is thedirect • using ONS labour productivity data, average effect. This is the economic activity earnings in industrial sectors and tax allowance generated by the University itself, for rates for 2014/15. example by employing academic and operational staff and by generating The scale of the University’s impact for each economic activity through its payment of channel is measured using three metrics: wages and generation of surpluses. The University also attracts students who, in turn, • Gross value added: Gross value added is attract visitors to the West of England. Their the contribution an institution or company spending stimulates additional economic makes to gross domestic product (GDP). It activity. is most simply viewed as the value of the output it produces less the value of bought- The second channel of impact is the indirect • in inputs used up in that output’s production. effect, which is the employment and activity which is supported through the University’s • Employment: measured in headcount terms local supply chain, as a result of its purchases rather than on a full-time equivalent (FTE) of inputs of goods and services from local basis to facilitate comparison with ONS suppliers. employment data. • The final channel, known as theinduced • Tax receipts: this study considers the receipts effect, captures the economic activity generated from Income and Corporation supported by staff and those employed in taxes, employee and employer National direct supply chains spending their wages on Insurance contributions and other indirect goods and services in the local economy. taxes paid by employees (such as VAT)

Fig. 1: The channels of economic impact

Direct impact Induced impact Total impact UWE Bristol’s Consumer spending operations out of staff wages Contribution to (within local economy) GDP Students’ Indirect impact • Food and beverages subsistence Purchase of inputs Employment expenditure from local suppliers • Recreation supported • Clothing Expenditure by Suppliers’ own Tax receipts additional visitors supply chains • Household goods generated

Purchases made from non-local suppliers (leakage from local economy)

8 The results are presented on a gross basis. The analysis does not factor in any displacement from other institutions or firms, substitution through time, or what the resource could alternatively been deployed to do. 8 9 ONS, Input-output analytical tables - 2010, ed. Richard Wild (Newport: ONS, 2014). Flegg A. T., Webber C. D., and Elliott M. V., “On the appropriate use of location quotients”, Regional Studies, 29 (1995): 547-61.

The economic impact of the University of the West of England

2. EMPLOYMENT CONTRIBUTION

2.1 TOTAL EMPLOYMENT

The presence of the University The University itself employed stimulates employment across 3,549 people in 2014/15. Its the West of England by bringing procurement and payment additional expenditure into of wages supported a further the economy. The University 1,330 people in employment in employs people, it purchases the West of England (Fig. 2). goods from local suppliers, and This means that UWE Bristol it pays wages which get spent in had an employment multiplier local retail and leisure outlets. Its of 1.37 in the city-region; additional students undertake for every 100 jobs at the expenditure and their visitors University itself, it supported pay for accommodation and an additional 37 elsewhere in food, etc.10 the West of England economy.

In 2014/15, including all impact Additional students’ channels, UWE Bristol and subsistence spending and the students it attracts to the their visitors’ spending locality supported around 8,280 supported 3,340 people jobs in the West of England. in jobs in the city-region in The equivalent of one in every 2014/15. This is 41 percent of 79 jobs in the city-region was the total employment impacts therefore dependent on the attributable to UWE Bristol in University’s existence. the local economy.

Fig. 2: UWE Bristol’s total employment contribution, 2014/15 Jobs 9,000 60 8,000

7,000 3,340 6,000

5,000 1,330 4,000 8,280 3,000

2,000 3,549

1,000

0 UWE Bristol University’s supply Additional students’ Visitors to Total itself chain and wage- subsistence additional students’ ﬁnanced spending spending spending Source: Oxford Economics

10 The number of students attracted to UWE Bristol from outside of the West of England plus an estimate of the number who 10 would have left to study elsewhere were it not for UWE Bristol’s presence. The economic impact of the University of the West of England

2.2 THE UNIVERSITY’S OWN EMPLOYMENT

The University itself has a Fig. 3: UWE Bristol’s staff number compared to major large workforce, making it a employers in South Gloucestershire12 major employer in the West of England. In 2014/15, it EE 1,100 employed 3,549 people at its campuses, comparable to Aviva 2,500 major local employers such as Airbus, GKN or Rolls Royce (Fig. 3). This was equivalent Rolls Royce 3,500 to the total number of people who work in sport facilities UWE 3,500 (3,500 people) or insurance agencies (3,600 people) in the Airbus 4,000 West of England as a whole.11 GKN Aerospace 4,000 UWE Bristol has also been a particularly stable source of employment over recent South Gloucestershire Council 5,500 years, at a time when other employers locally have seen Ministry of Defence 11,000 significant reductions in their overall workforce. UWE Bristol 0 3,000 6,000 9,000 12,000 employed virtually the same People number of people in 2015 as it Source: UWE Bristol, South Gloucestershire Council did in 2008. Fig. 4: Staff by major category, 2014/15* UWE Bristol also provides Research Senior management employment right across 4% 2% the skills spectrum (Fig. 4). Temporary Roles range from manual, 6% to academic, to the senior management team. Manual 6% Admin/ Technical professional 7% 36%

Associate lecturing 8%

Academic 31% Source: UWE Bristol*Snapshot as at December 2015

11 Standard Industrial Classification of Economic Activities (SIC codes) 93.11: Operation of sports facilities and 66.22: Activities of insurance agents and brokers, respectively. 12 South Gloucestershire Council, Business Directory and Guide 2016/17. 11 The economic impact of the University of the West of England

The great majority (80 percent) of University employees live in the West of England, with the biggest share (1,541 staff members, or 43 percent of total) in Bristol, a further 952 employees (or 27 percent of the total) in South Gloucestershire, 197 people (or 6 percent) in North Somerset and 144 (or 4 percent) in Bath and North East Somerset (Fig 5).

Fig. 5: Home locations of UWE Bristol employees, 2014/15

Number of sta South Gloucestershire 1–50

51–100 Bristol

101–500 North Somerset 501–1,000

1,001+ UWE Bristol Bath and North East Somerset

Source: UWE Bristol, Oxford Economics

12 The economic impact of the University of the West of England

2.3 SUPPLY CHAIN AND CONSUMER SPEND CONTRIBUTION

To undertake its activities, In 2014/15, the University spent UWE Bristol sources many £44.1 million (or 45 percent of of the goods and services total procurement) on inputs it purchases locally; the from about 1,320 suppliers University has an explicit in the West of England. Of commitment to local this total, suppliers located purchasing where possible. in South Gloucestershire and This local procurement Bristol received 55 and 31 supports significant economic percent activity and employment of local expenditure, across the West of England. respectively (Fig. 6).

Fig. 6: Spending with suppliers in the West of England, 2014/15

Procurement South Gloucestershire £0–1 million £1–5 million Bristol

£5–10 million North Somerset £10–20 million

£20+ million UWE Bristol Bath and North East Somerset

Source: UWE Bristol, Oxford Economics

13 The economic impact of the University of the West of England

UWE Bristol buys goods businesses in the West of the industrial sectors in which and services from local England. The economic activity they work. suppliers across a wide range that this spending generates of industries. In 2014/15, constitutes the additional Staff at the University and it spent £25.1 million on ‘induced’ impact of UWE in its supply chain spend a construction and maintenance Bristol on the West of England proportion of their wages in with businesses in the West economy. local retail and leisure outlets, of England, £3.8 million on helping to sustain local professional services and £1.3 In 2014/15, the University businesses. Their expenditure is million on safety and security paid £82.2 million in gross estimated to support 970 jobs (Fig. 7). salaries to its 2,834 employees in the West of England, many who lived in the West of of these being in retailing and The University’s £44.1 million England. The University the hospitality sector. annual spend on goods and pays its employees gross services from local suppliers is salaries substantially above This will be an underestimate, estimated to have supported the city-region average. The as many of the University’s 360 people in employment in average gross salary for UWE employees and those the West of England. Bristol staff resident in the employed in its direct supply West of England in 2014/15 chain that live elsewhere are Both the University and its was £29,000. This was 12 likely to visit the city-region’s suppliers pay wages and percent above the average for retail and leisure outlets during salaries to their staff, and a residents in the city-region.13 lunch-breaks or after work, but proportion of this income it is difficult to estimate the is subsequently used by Those working in the extent of this spend. employees to purchase food, University’s supply chain are clothing and a wide range estimated to receive some of goods and services from £14 million in wages, given

Fig. 7: UWE Bristol’s expenditure with suppliers in the West of England city-region, 2014/15 £ million 30

25 25.1

10 11.0

5 3.8 1.3 1.0 0.7 0.6 0.5 0 Estates & Professional Safety & Catering Computer Utilities Travel & Other buildings & bought-in security supplies supplies transport services & services & services Source: UWE Bristol

14 13 Office for National Statistics, “Annual Survey of Hours and Earnings: 2015 Provisional Results” (18 December 2015). The economic impact of the University of the West of England

2.4 STUDENT SUBSISTENCE SPENDING

UWE Bristol attracts students to UWE Bristol’s presence in The additional students’ to the West of England from the area (see methodological subsistence spending fuels across the UK and from over appendix for further details economic growth by creating 140 countries globally. It also on the identification of and sustaining jobs across retains students in the West of additional students). These the area. This will, in turn, England who might otherwise students are estimated to benefit both the firms serving have moved to study elsewhere. have spent £205.7 million on these students directly, and housing, food, personal items, also their suppliers and their An estimated 14,430 of the entertainment, transport and staff, who will also spend University’s students (or 50 other items. Much of this will their wages in the locality. percent of the student body) have been sourced from retail In total, additional students’ can be classified as ‘additional’ and leisure outlets in the West subsistence spending is to the West of England, i.e. of England in 2014/15. This estimated to support 3,340 they would not be based ‘extra’ expenditure in the area jobs in the West of England locally otherwise and so their again helps to sustain many city-region. expenditure can be attributed local businesses.

2.5 SPENDING OF VISITORS

The 14,430 students that In 2014/15, visitors to students are additional to the West at UWE Bristol spent an of England attract extra estimated £2.7 million locally expenditure into the city- on goods and services region. Friends and relatives including transport, hotels, visiting these students will restaurants and bars and spend money in the area, visiting cultural, recreational generating economic activity and sports attractions. Taking and supporting employment in account of the subsequent local businesses. supply chain and wage consumption impacts, this spending supported around 60 jobs in the West of England.

15 The economic impact of the University of the West of England

3. GDP CONTRIBUTION

3.1 TOTAL GDP CONTRIBUTION

As well as supporting Of this combined total, the economic output it produces employment, UWE Bristol also University itself contributed in the city-region, it supports a contributes substantially to the £241.1 million gross value added further £430,000 elsewhere in West of England’s economic to the city-region’s GDP (Fig. the local economy. activity, conventionally 8). This was split between measured in terms of gross £169.1 million (or 70 percent) In 2014/15, the University’s domestic product (GDP). In directly contributed by the additional students’ and total, the University and the University itself and £72 million their visitors’ expenditure students it attracts together (30 percent) contributed by its stimulated a £159.1 million contributed £400.1 million to procurement and payment of gross value added contribution economic output in the West wages. This gives the University to city-region’s economy. This of England, in 2014/15, or 1.3 a gross value added multiplier is 40 percent of all economic percent of all economic output in the West of England of activity supported by UWE in the city-region. 1.43, so for every £1 million of Bristol in the West of England.

Fig. 8: The contribution to GDP of UWE Bristol and its students, 2014/15 £ million 450 1.9 400

350 157.2 300

250

200 72.0 400.1

150

100 169.1 50

0 UWE Bristol University’s supply Additional students’ Visitors to Total itself chain and wage- subsistence additional students’ ﬁnanced spending spending spending Source: Oxford Economics

16 The economic impact of the University of the West of England

3.2 DIRECT GDP CONTRIBUTION

In 2014/15, the University Fig. 9: UWE Bristol’s income by source, 2014/15 earned £237.6 million in Tuition fees income. Some £171.1 million of Other operating and education income this came from the University’s contracts £34.0m students in the form of tuition £171.1m fees and education contracts (Fig. 9). Another £20.0 million Funding council grants came from funding council £20.0m grants and £11.5 million in the form of other research grants Research grants and contracts.14 and contracts £11.5m UWE Bristol spent about £223.3 million in 2014/15, Endowment and including staff costs and investment income other operating expenses. £1.0m The University’s single largest expenditure was staff costs Source: UWE Bristol amounting to £135.4 million (Fig. 10). It also made a gross surplus of £23.9 million. Based on this information, Fig. 10: UWE Bristol’s gross value added by source, 2014/15 Oxford Economics estimates Depreciation Interest and other the University made a £169.1 £8.9m ﬁnancial costs million direct gross value £0.9m added contribution to GDP, or 0.5 percent of all the economic Gross surplus output produced in the West £23.9m of England city-region in 2014/15.

Employee compensation £135.4m

Source: UWE Bristol

14 University of the West of England, “Annual Report and Financial Statements 2014-15”. 17 The economic impact of the University of the West of England

3.3 SUPPLY CHAIN AND CONSUMER SPEND CONTRIBUTION

As with the effects on percent from firms in Bristol employment, the University’s and the remainder split evenly expenditure on goods and between Bath and North East services and its payment of Somerset and North Somerset. wages and salaries to staff This expenditure is estimated that were subsequently to generate a £23.8 million spent locally stimulated contribution to GDP in the considerable economic activity city-region. Some 47 percent at businesses across the (or £11.1 million) of the boost West of England and boosted in gross value added from economic output as a result. the University’s procurement occurred at local construction As noted earlier, in 2014/15, firms (Fig. 11). Value added the University spent £44.1 at local firms which provided million on goods and services other service activities from suppliers in the West of and professional, scientific England, 55 percent from firms and technical services also in South Gloucestershire, 31 increased significantly.

Fig. 11: Gross value added supported in UWE Bristol’s supply chain, 2014/15

Other 1.9

Manufacturing 0.5

Wholesale and retail trade 0.8

Administrative and support 1.4

Professional, scientiﬁc and tech 2.6

Other service activities 5.6

Construction 11.1

0 1 2 3 4 5 6 7 8 9 10 11 12 £ million Source: Oxford Economics

18 The economic impact of the University of the West of England

UWE Bristol and the firms in from local businesses. This its direct supply chain pay spending is estimated to their staff wages and salaries. contribute a further £48.2 These are, in part, used to million to GDP in the West of purchase goods and services England (Fig. 12).

Fig. 12: Gross value added supported through the wage spending of staff at UWE Bristol and its suppliers, 2014/15

Other 8.5

Transportation 2.5 and storage

Information and 2.6 communication

Accommodation 4.2 and food services

Financial and insurance 4.8

Wholesale and retail trade 10.4

Real estate and letting 15.2

0 2 4 6 8 10 12 14 16 £ million Source: Oxford Economics

3.4 STUDENT SUBSISTENCE 3.5 SPENDING OF VISITORS SPENDING TO STUDENTS

The subsistence spending Finally, visitors to additional of students attracted or students attending UWE Bristol retained in the area by UWE use local transport, stay at Bristol again forms part of hotels, pay entrance fees to the the overall economic impact region’s attractions and visit the of the University in the West city-region’s restaurants and of England. The expenditure bars. This extra expenditure on transport, food and other stimulates economic activity goods and services by the at local businesses. In 2014/15, 14,430 additional students the spending of visitors to is estimated to contribute a students is estimated to have further £157.2 million to GDP in contributed an additional £1.9 the city-region. million to GDP.

19 The economic impact of the University of the West of England

IMPACT IN BRISTOL AND SOUTH GLOUCESTERSHIRE

The report is focused mainly on the activities UWE Bristol’s impact in the City of Bristol and and impact of the University across the West in South Gloucestershire—the main Frenchay of England city-region as a whole. This section campus is in South Gloucestershire, Glenside breaks this down to look more specifically at and the City Campus are in Bristol.

Fig. 13: UWE Bristol’s impact on the City of Bristol and South Gloucestershire in 2014/15

Headline impact South Bristol Gloucestershire Gross value added produced by UWE Bristol (£ million) 133.7 35.4 Share of gross value added produced by UWE 1.6% 0.3% Employment at UWE Bristol (people) 2,807 742 Share of employment at UWE Bristol 1.7% 0.3% Share of UWE Bristol staff living in the district 26.8% 43.4% UWE Bristol staff living in the district as a share of working 0.7% 0.6% age population Share of UWE Bristol students living in the district 24.2% 53.4% UWE Bristol students living in the district as a share of all residents 2.5% 3.3% UWE Bristol staff and students living in the district as a share of 3.1% 4.0% all residents

Source: UWE Bristol, ONS, Oxford Economics

Including academic and non-academic workers, UWE Bristol directly generated a gross value in 2014/15 UWE Bristol employed just over added contribution of £35.4 million to the 2,800 people in South Gloucestershire. This City of Bristol’s economy in 2014/15. This was equal to one in every 60 jobs in the district was equivalent to 0.3 percent of the district’s (there were almost 170,000 employed people economic output. The University created over in South Gloucestershire in 2014/15). In addition 700 jobs in Bristol in 2014/15—equivalent to to the employment activity created directly, one in every 390 jobs in the area. Staff resident UWE Bristol generated a £133.7 million gross in the district represented 43 percent of the value added contribution to local GDP. This was University’s workforce and some 53 percent of equivalent to 1.6 percent of the district’s entire the students lived in the city in 2014/15. UWE economic output. Twenty-seven percent of Bristol staff and students living in the City of staff and 24 percent of students at UWE Bristol Bristol comprised 4.0 percent of its 445,600 lived in the district. UWE Bristol’s staff and residents. students who lived in South Gloucestershire comprised 3.1 percent of the district’s 273,100 residents.15

15 ONS, “Mid-2015 population estimates for Lower Layer Super Output Areas in England and Wales by single year of age and sex - 20 supporting Information”, (23 June 2016).

The economic impact of the University of the West of England

4. TAX CONTRIBUTION

4.1 TOTAL CONTRIBUTION

The economic activity and In total, UWE Bristol generated The University and its staff employment outlined in directly or through secondary were responsible for 70 percent Sections 2 and 3 of this report channels a total tax contribution of the total through direct and bring with them further benefits of £88.7 million to the UK secondary channels (Fig. 14). as a consequence of the tax Exchequer in 2014/15. To give Tax payments generated by revenues that they generate. a sense of scale, this amount additional students’ subsistence These are used, in turn, to would cover the running costs spending comprised a further finance vital public services. of the Avon Fire Brigade for 30 percent. almost two years.16 Fig. 14: Total tax contribution of UWE Bristol, 2014/15 £ million 100 0.3 90

80 26.7 70

60 9.1 50 88.7 40

30 52.7 20

0 UWE Bristol University’s supply Additional students’ Visitors to Total itself chain and wage- subsistence additional students’ ﬁnanced spending spending spending Source: Oxford Economics

22 16 Avon Fire Authority, “Statement of Accounts 2014/2015”. The economic impact of the University of the West of England

4.2 UNIVERSITY AND STAFF CONTRIBUTION

UWE Bristol and its staff paid Fig. 15: UWE Bristol’s direct tax contribution by type, 2014/15 £52.7 million in taxes in 2014/15. Of this amount, employer and Employees council tax National Insurance employee National Insurance £2.4m contributions contributions accounted for £19.6m £19.6 million or 37 percent of Employees’ the University’s total direct tax indirect taxes contribution (Fig. 15). Payment £14.2m of income tax on staff wages generated a further £16.4 million for the Exchequer, or 31 percent of total. The payments of indirect taxes by UWE Bristol’s employees (including Income tax VAT) accounted for £14.2 £16.4m million or 27 percent of the tax payments by the University Source: Oxford Economics, UWE Bristol and its staff.

23 The economic impact of the University of the West of England

5. UWE BRISTOL GRADUATE TALENT 5.1 THE UNIVERSITY AS A SUPPLIER OF SKILLED LABOUR

UWE Bristol has a major have professional qualifications in work or further study impact on business and other secured alongside academic three and a half years after organisations across the ones. In 2014/15, the total graduation, compared with West of England including included, for example, 934 97 percent nationally.18 UWE the health service and nurses and other health Bristol also outperforms the schools through its role professionals; 388 architects, sector nationally in terms of as a provider of graduate planners and other built the proportion of graduates talent. This includes both environment professionals; 382 in higher level roles, with 78 graduates originally from the teachers; 373 engineers; 354 percent of those who left in city-region who study at the graduates in fashion, fine art 2014/15 in professional and University and later work in and graphic design; and 250 managerial roles six months the city-region, but also those computer scientists. after graduating compared to attracted into the West of 71 percent nationally. England to study, a proportion Official survey data shows of whom are then recruited by that UWE Bristol graduates A high proportion of UWE local employers. are highly employable: six Bristol graduates find months after graduation employment locally and remain Some 6,722 students 96 percent were in work or in the West of England after graduated from UWE Bristol further study, compared with graduation. Some 44 percent of in 2014/15, 5,401 of whom the national average of 94 all in-work UWE Bristol 2014/15 qualified to undergraduate percent. Focusing on a longer graduates were working in the level and a further 1,371 to time horizon, 99 percent of West of England, with a further postgraduate level.17 Many also UWE Bristol graduates were 20 percent working in the wider South West region (Fig. 16). Fig. 16: In-work 2014/15 UWE Bristol’s graduates by employment region six months after graduation

Greater London 3% Non-UK 6% West of England 44% Rest of South West 20%

Other UK 27%

Source: DLHE

17 Undergraduate level includes Undergraduate Degree, Higher Education Diploma, and Foundation Degree. 18 HESA, “Destinations of Leavers for Higher Education”, 2016. HESA, “Destinations of Leavers from Higher Education Longitudinal 24 Survey”, 2015.

The economic impact of the University of the West of England

Of the 44 percent of in-work Fig. 17: Origin and destination of UWE Bristol’s 2014/15 in- UWE Bristol 2014/15 graduates work graduates who took jobs at employers located in the city-region, some Employer region after graduation 48 percent were originally West of from the West of England. The Other Total England remaining 52 percent (or 22 West of percentage points out of the 21% 4% 25% 44) came from outside of the England city-region to study at UWE Home location Bristol (Fig. 17). UWE Bristol prior to starting Other 22% 52% 75% therefore plays a significant at UWE Bristol role in attracting talent into Total 44% 56% 100% the city-region to study and, subsequently, join the graduate Source: Oxford Economics workforce.

5.2 GRADUATES IN KEY WORKER ROLES

Some of the roles students to almost 15 percent of the 18). In the subject rankings of take on after graduating graduates who reported being the Guardian University League are important for their in work. Nurses made up the Tables 2017, UWE Bristol ‘social significance’. Social greatest proportion of these came top for Social Work, significance can be defined alumni (44 percent), followed demonstrating the University’s in a number of ways. This by teachers (37 percent), health prominent role in the provision study draws from the UK practitioners (11 percent) and of socially significant workers Government’s definition social workers (4 percent) (Fig. to the labour force.20 of key workers, to look in greater depth at the following Fig. 18: Composition of ‘socially significant’ roles by UWE Bristol occupations:19 graduates in the West of England city-region, 2014/15

• Doctor Physiotherapists Psychologists • Nurse 3% 1% Social workers Physiotherapist • 4% • Psychologist Medical practitioners 11% • Social Worker • Speech & Language Nurses Therapist 44% • Teacher

The DLHE survey indicates that around a third of the 2014/15 graduate population who are Teachers working in the West of England 37% are employed in socially significant roles. This amounts Source: DLHE

19 As applied under the former Key Worker Living scheme. 26 20 The Guardian, “University league tables 2017”, 23 May 2016. The economic impact of the University of the West of England

More of the 2014/15 cohort of compared to 6.4 percent who graduates who are employed work elsewhere in the rest of as nurses and teachers work the UK. Similarly, 5.5 percent in the West of England than of all 2014/15 graduates who go to work in other parts of are employed work as teachers the UK (Fig. 19). Nurses make in the West of England, up 6.6 percent of the 2014/15 compared to 5.2 percent in the graduates in employment who rest of the UK. work in the West of England,

Fig. 19: UWE Bristol’s share of in-work 2014/15 graduates in ‘socially significant’ roles in the West of England and rest of the UK

Percentage share of in-work DLHE respondents 7 West of England Rest of UK 6

0 Nurses Teachers Medical practitioners

Source: DLHE

27 The economic impact of the University of the West of England

6. CONCLUSION

UWE Bristol makes a very people in employment in the additional students, and their substantial contribution to area (1.3 percent). Some 59 visitors supported a £88.7 the economy of the West of percent was as a result of million tax contribution to the England. It does so through its the University’s expenditure, Exchequer. own operations, its purchases with the remainder of jobs of goods and services from stimulated by additional The University had a major local suppliers, the wage- students’ and their visitors’ impact on businesses and the financed spending of its staff spending. local economy through its and the expenditure of its role in the supply of graduate additional students and their The University contributed talent. A significant proportion visitors. £400.1 million to the West of the thousands of graduates of England economy. This is from the University annually In total, UWE Bristol is equivalent to 1.3 percent of the are employed within the estimated to have supported local economy (Fig. 20). As a city-region, including many 8,280 jobs in the West of result of this activity, in 2014/15, of those attracted to study at England, or one in every 79 the University, its employees, UWE Bristol from elsewhere.

Fig. 20: The economic impact of UWE Bristol on the West of England, 2014/15 People £ million 9,000 450

8,000 400

7,000 350

6,000 300

5,000 250

4,000 200

3,000 150

2,000 100

1,000 50

0 0 Jobs (LHS axis) Gross value added (RHS axis)

Source: Oxford Economics

The economic impact of the University of the West of England

7. METHODOLOGICAL APPENDIX

ADDITIONAL STUDENTS’ SUBSISTENCE SPENDING

UWE Bristol attracts students The Department for Business, To calculate how much to the West of England from Energy and Industrial Strategy expenditure UWE Bristol other parts of the world and regularly publishes data on attracts into the city-region in retains local students who subsistence expenditure by the form of student subsistence might have gone to study students. The latest available spending, it is necessary to elsewhere. The subsistence data covered the 2011/12 compare student term-time spending of these students academic year.22 Students’ and home locations. It suggests would not otherwise occur in expenditure is made up of: that 10,300 students came the city-region’s economy and from outside the city-region to living costs, including food, is, therefore, part of the overall • live in the area while studying drink, personal items etc.; impact of UWE Bristol.21 in 2014/15. A further 4,120 • housing costs, including students lived in the area while Subsistence expenditure refers rent, mortgage costs, studying, but as these students to all spending on goods and Council Tax etc.; were originally from the West of services except for tuition fees. England, their spending cannot participation costs, It includes, for instance, the • be treated as ‘additional’ unless including costs of books, purchases of items required they would have left the area stationery etc., and; for facilitating their study, to go to other higher education such as transport to University • spending on children, if any. institutions (HEIs). Using and books, as well as other students’ insurance choice data consumer expenditure— Making allowance for the provided by the University, including spending on food, change in living costs it has been estimated that leisure and social activities. between 2011/12 and 2014/15 over 91 percent of full-time Payments to the University in using the ONS’ Consumer students would have left the the form of tuition fees and for Price Index indicates that West of England to pursue university accommodation are the average student at UWE higher education elsewhere. removed from the calculation Bristol spent £15,900 in The remaining nine percent so as not to double count. 2014/15, including housing would have chosen Bath Spa costs. University, hence they would have been spending money in the local economy anyway and cannot therefore be treated as additional.

21 The spending of students domiciled in the West of England prior to attending university is not deemed to be additional to the local economy as the counterfactual scenario assumes that these students would be spending money in this economy if they were 30 not attending UWE Bristol. 22 Department for Business Innovation & Skills, “Student Income and Expenditure Survey 2011/12” (9 April 2014). The economic impact of the University of the West of England

VISITORS TO ADDITIONAL STUDENTS

The visitors that the University’s Applying this methodology Following this approach, the additional students attract to to the University’s 4,000 10,300 additional students the city-region come from other additional overseas students who came to the West of parts of the UK and overseas. who were living in the West of England to study at UWE The amounts spent by the two England indicates that visitors Bristol from elsewhere in the types of visitors—domestic and to these students spent over UK attracted visitors who international—differ according £1.1 million in the area in 2014/15. spent almost £1.6 million in the to visitor origin. Therefore two local area. methods are used to calculate Domestic visitors the spending impact of these The University’s domestic In total, in 2014/15, domestic visitors in the West of England. students also attract visitors to and international visitors to the West of England. Although students at UWE Bristol spent Visitors from overseas no information is available £2.7 million on local transport, The ONS’ International on how many visitors each accommodation, restaurants Passenger Survey (IPS) additional student receives, and bars, and visiting cultural, provides detailed data on data do exist on the average recreational and sports the spending of international spend of a visitor from each attractions. visitors to the UK and part of the UK to friends and its nations and regions, relatives in the South West.23 disaggregated by purpose Using a similar approach to that of the trip and by nationality employed for overseas students of the visitor. University data it is possible to estimate the indicate that, for instance, spending that these domestic there were 390 additional visitors make in the city-region. students from China living This study assumes that each in the West of England city- student from outside the West region in 2014/15. The 2011 of England gets one visitor Census data indicate that there from their home region each were over 3,300 people of year. With the likelihood that Chinese nationality living in the some students receive multiple West of England. Therefore, family visits over the course 12 percent of all spending by of an academic year and that Chinese visitors to the area parents are often involved who were visiting friends in the transport of personal and relatives in the area is effects at the beginning and attributed to UWE Bristol. end of session, this is probably a very conservative assumption.

23 Great Britain Tourism Survey (2014), online data browser. 31 The economic impact of the University of the West of England

OXFORD ECONOMICS

Oxford Economics was founded in 1981 as a March 2017 commercial venture with Oxford University’s business college to provide economic All data shown in tables and charts are forecasting and modelling to UK companies Oxford Economics’ own data and are and financial institutions expanding abroad. copyright © Oxford Economics Ltd, except Since then, we have become one of the where otherwise stated and cited in world’s foremost independent global footnotes. advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 This report is confidential to the University industrial sectors and over 3,000 cities. of the West of England and may not be Our best-of-class global economic and published or distributed without their prior industry models and analytical tools give us written permission. an unparalleled ability to forecast external market trends and assess their economic, The modelling and results presented here social and business impact. are based on information provided by third parties, upon which Oxford Economics has Headquartered in Oxford, England, with relied in producing its report and forecasts regional centres in London, New York, in good faith. Any subsequent revision and Singapore, Oxford Economics has or update of those data will affect the offices across the globe in Belfast, Chicago, assessments and projections shown. Dubai, Miami, Milan, Paris, Philadelphia, San Francisco, and Washington DC. We Oxford Economics employ over 300 full-time people, including Broadwall House, more than 200 professional economists, 21 Broadwall, industry experts and business editors—one London, of the largest teams of macroeconomists SE1 9PL, UK and thought leadership specialists. Our Tel: +44 207 803 1400 global team is highly skilled in a full range of research techniques and thought leadership capabilities, from econometric modelling, scenario framing, and economic impact analysis to market surveys, case studies, expert panels, and web analytics. Underpinning our in-house expertise is a contributor network of over 500 economists, analysts and journalists around the world.

Oxford Economics is a key adviser to corporate, financial and government decision-makers and thought leaders. Our worldwide client base now comprises over 1000 international organisations, including leading multinational companies and financial institutions; key government bodies and trade associations; and top universities, consultancies, and think tanks.

Europe, Middle East, Dubai Florida and Africa: Jumeirah Lake Towers 8201 Peters Road, Dubai, Suite 1000 Global headquarters UAE Plantation, Oxford Economics Ltd Tel: +971 56 396 7998 Miami 33324 Abbey House USA 121 St Aldates Tel: +1 (954) 916 5373 Oxford, OX1 1HB Americas: UK Toronto Tel: +44 (0)1865 268900 New York 2425 Matheson Blvd East 5 Hanover Square, 19th Floor 8th Floor Mississauga, Ontario London New York, NY 10004 L4W 5K4 Broadwall House USA Canada 21 Broadwall Tel: +1 (646) 786 1879 Tel: +1 (905) 361 6573 London, SE1 9PL UK Philadelphia Tel: +44 (0)20 7803 1418 303 West Lancaster Avenue Asia Pacific: Suite 2e Belfast Wayne, PA 19087 Singapore Lagan House Sackville Street USA 6 Battery Road Lisburn Tel: +1 (610) 995 9600 #38-05 County Antrim, Singapore 049909 BT27 4AB Mexico City Tel: +65 6850 0110 UK Emerson 150, Despacho 802 Tel: + 44 (0)2892 635400 Col. Polanco, Miguel Hidalgo Hong Kong México D.F., C.P. 11560 30/F, Suite 3112 Paarl Tel: +52 (55) 52503252 Entertainment Building 12 Cecilia Street 30 Queen’s Road Central Paarl 7646 Boston Tel: +852 3103 1096 South Africa 51 Sawyer Road Tel: +27(0)21 863-6200 Building 2 - Suite 220 Tokyo Waltham, MA 02453 4F Tekko Building Frankfurt USA 1-8-2 Marunouchi Mainzer Landstraße 41 Tel: +1 (617) 206 6112 Tokyo 60329 Frankfurt am Main 100-0005 Germany Chicago Tel: +81 3 6870 7175 Tel: +49 69 95 925 280 980 N. Michigan Avenue, Suite 1412 Chicago Sydney Paris Illinois, IL 60611 Level 56, MLC Centre 3 Square Desaix USA 19-21 Martin Place 75015 Paris Tel: +1 (773) 372-5762 Sydney, NSW France Tel: +61 2 9220 1707 Tel: +33 (0)1 78 91 50 52 Los Angeles 2500 Broadway, Building F, Email: Milan Suite F-125 [email protected] Via Cadorna 3 Santa Monica, 90404 Website: 20080 Albairate (MI) Tel: +1 (424) 238-4331 www.oxfordeconomics.com Italy Tel: +39 02 9406 1054