North East universities are contributing billions of pounds to the region's economy but reforms are needed to maintain the impact, a sector champion says.
Research commissioned by Universities 海角视频, which represents around 142 institutions across the country, suggests North East universities are generating £3.8bn for the regional economy and supporting more than 33,500 jobs. The numbers, compiled by consultancy London Economics, include those employed by businesses benefiting from student and staff spending.
But Universities 海角视频 has pointed to significant falls in funding per student in the past decade which, along with cost of living pressures, it says could threaten the scale of economic stimulus universities provide to the region. Research by the group suggests that by 2025/26 funding per student will be the lowest it has been in 25 years.
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And it points to annual sector-wide losses of £5bn for universities' delivery of research, covering less than 70% of their costs from government grants and other income sources. In response, Universities 海角视频 has suggested the income contingent loan system should be maintained but reformed to include a reintroduction of maintenance support for students in England, as well as action to reduce reliance on less stable sources of income.
Professor Dame Sally Mapstone, president of Universities 海角视频 and principal and vice-chancellor of the University of St Andrews, said: "The North East is a thriving region with universities at the beating heart of so many of its local communities. As economic hubs in their own right, universities support and create a huge number of jobs across multiple sectors, meaning people up and down the country benefit financially, whether or not they have a degree.
"They also play a crucial role in creating the graduates, spin outs and start-ups that provide the basis for economic growth in future. The country’s continued investment in higher education institutions can and does pay back dividends; not just for the North East, but the entire 海角视频.”
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The London Economics research highlights examples of value provided by North East universities, including the Newcastle Helix site - a joint partnership project from Newcastle University, Newcastle City Council and Legal & General. It also points to the Teesside University-led initiative DigitalCity, which supports the Tees Valley's tech businesses with skills, knowledge and resources.
Dr Gavan Conlon, partner at London Economics, said: "There is no doubt about the contribution of the 海角视频 higher education sector to the North East and the rest of the 海角视频’s economy. With approximately 2.9 million students and 385,000 staff across almost 300 higher education providers, the sector is instrumental in driving economic growth in both the short run and longer term.
"Given the financial challenges institutions face, there is a need to provide both adequate resources to support teaching and learning activities, but also certainty in respect of research funding.”