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.
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
Generating ROI with AI: Six capabilities that drive world-class results
Generative AI has taken the business world by storm, with large language models (LLMs)—including OpenAI’s ChatGPT—splashed across the news. And executives aren’t immune to the hype. AI is becoming an ever-larger component of IT budgets, with worldwide spending on AI-centric systems expected to hit $154 billion this year—up 27% over 2022. But will enterprises spend these resources wisely? Our research says yes—if organizations take a disciplined approach.
Find Out More
Post
Deep Green
A global research study that details the current state of play on environmental sustainability actions and how data, technology and collaboration will drive the next phase of sustainability in business.
Find Out More
Post
Leveraging Technology to Promote Financial Inclusion
Oxford Economics and Red Hat surveyed executives at financial institutions internationally to discover how they are using technology to expand financial inclusion while gaining business benefits.
Find Out More