Ungated Post | 03 Oct 2018

The impact of independent schools on the UK economy

Independent schools support £13.7 billion of UK GDP annually, associated with over 300,000 jobs and £4.1 billion of yearly tax revenues. They help the exchequer further by providing an alternative to state-funded education, and boost the economy’s long-term productive potential by improving educational outcomes.

In total, around 620,000 school pupils – some six percent of the national total – attend independent as opposed to state schools in the UK. Taking into account associated ‘indirect’ (supply chain) and ‘induced’ (wage-funded spending) impacts, these schools’ activities support £13.7 billion of GDP, 300,000 jobs, and £4.1 billion of taxation, via their impact on demand. The also save the UK taxpayer £3.5 billion per annum, as 530,000 of these pupils would otherwise be eligible for a state-funded school place. The schools also make a positive contribution to the economy’s supply-side.

As the sector’s educational outcomes are above-average, we estimate that they could boost the UK’s long-term growth rate by around 0.07% per annum, taking into account OECD research. As this growth shortfall is compounded year-on-year, the impact on annual GDP could be quite marked after several decades.

Read the full report

Our economic consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:

Oxford Economics’ team is expert at applying advanced economictools that provide valuable insights into today’s most pressing business, financial,and policy issues.

To find out more about our capabilities, contact:

EMEA
Sam Moore
+44 (0)207 803 1415
Email

Americas
Hamilton Galloway
+1 (646) 503 3068
Email

Asia
Peter Suomi
+65 6829 7198
Email

Related Services

Post

Urenco’s socioeconomic impact on the UK economy

Urenco provides uranium enrichment services and fuel cycle products for nuclear power generation. Operating in a pivotal area of the nuclear fuel supply chain for over 50 years Urenco serves more than 50 customers in 19 countries, facilitating zero carbon electricity generation for consumers around the world.

Find Out More

Post

Status deutscher Mode

The latest report from Oxford Economics and the Fashion Council Germany analyses the economic impact of the fashion industry on the German economy in 2023, looking at key aspects such as employment, GDP contributions and tax revenues generated.

Find Out More

Post

State of German Fashion

The latest report from Oxford Economics and the Fashion Council Germany analyses the economic impact of the fashion industry on the German economy in 2023, looking at key aspects such as employment, GDP contributions and tax revenues generated.

Find Out More