Ungated Post | 16 Oct 2017

The Economic Impact of Universities in 2014-15

This report for Universities UK investigates the contribution of the the higher education sector  to the UK economy. It identified that in 2014-15, Universities directly employed 404,000 people, created a £21.5 billion gross value added contribution to UK GDP, and generated £5.3 billion in tax receipts.

The importance of universities to the economy goes far beyond this direct contribution, however. By spending money in the wider economy, students, visitors to them, and universities themselves, support economic activity in a wide range of industries. Adding these economic effects together means that in 2014-15, universities supported a total gross value added contribution of £52.9 billion to UK GDP―2.9 percent of the country’s total economic output. They sustained 940,000 jobs, 3 percent of total UK employment, and generated £14.1 billion in tax receipts, 2.7 percent of UK Government tax revenue in the year.

For the first time in this series of reports, Oxford Economics has also explored the impact of universities on the productive capacity of the UK economy. Through higher education, universities provide students with skills and knowledge, which, in 2014-15, boosted the UK’s human capital stock by an estimated £63 billion. Further, their £7.9 billion of research and development activities in the year were estimated to deliver a stream of private and social returns equivalent to £28.9 billion gross value added, or £1,000 in income per household.

Read the full report.

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

To find out more about our capabilities, contact:

Americas
Diantha Redd
+1 (646) 503 3052
Email

Asia Pacific
Peter Suomi
+65 6850 0110
Email

EMEA
Aoife Pearson
+44 (0)203 910 8054
Email

Related Services

Post

Global Pump Market Outlook 2024

The global pump market experienced a modest recovery in 2023. For 2024, we project a 2.5% growth in the market, reflecting a cautious optimism amid varied economic conditions.

Find Out More

Post

The Malaria ‘Dividend’: Why Investing In Malaria Elimination Creates Returns For All

Malaria No More (MNM) United Kingdom (UK) commissioned Oxford Economics Africa to assess the future economic impact of malaria on the countries most exposed to the disease, as well as at the Africa and global levels, while also considering the UK’s relationship with the most affected countries and the benefits arising from localised research and development (R&D) and manufacturing.

Find Out More

Post

Spirits: global economic impact study 2024

On behalf of the World Spirits Alliance (WSA), and in collaboration with the IWSR, Oxford Economics undertook the first ever truly global economic impact assessment of the production and sale of spirits across 185 economies in 2022. The study found that the production and sale of spirits supported $730 billion in GVA contributions to global GDP, as well as 36 million jobs and $390 billion in tax revenue for governments across the world.

Find Out More