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The Economic Impact of the University of the West of England

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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 2 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.
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