Universities body calls on government to invest in ‘highly productive’ sector

The head of a higher education body has called on the Scottish Government to do “all it can” to invest in higher education, as a report shows the sector had a £17.1 billion impact on the economy in the 2021-22 academic year.

The report, commissioned from London Economics by Universities UK, indicates the economic impact of Scotland’s 19 universities and higher education institutions was the third largest of any nation and region in the UK, behind only London and the south east.

The total of £17.1 billion includes £8.7 billion generated from research and innovation, which the report said was the highest in the UK outside London and 14% of the UK total of £62.84 billion.

It added that Scottish universities delivered the best economic return on public investment in research and innovation out of any UK nation, with £10.80 generated for every £1 of public investment in Scotland.

This compares with £9.90 returned to the economy for every £1 invested in England.

Professor Iain Gillespie, convenor of Universities Scotland, said: “Universities are a major asset to the Scottish Government when it comes to boosting growth and productivity, and these new figures from London Economics confirm the value of the higher education system is felt throughout Scotland.

“With a close to an 11:1 return on every pound of public funding invested in research and innovation, Scotland’s universities are highly productive in their outputs, delivering a better economic return in this area than any nation or region in the UK, with the exception of London.

“Scotland needs to do all it can to invest in higher education now for continued and future economic leverage. Investment in our universities is critical to industries beyond the sector alone, and this research shows the influence of higher education goes beyond our campuses.

“Given the fiscal challenges the Scottish and UK governments face, this report is a timely reminder of the key role higher education plays in the Scottish and UK economy.

“Universities are central to driving forward growth and unlocking future potential in the economy and it is imperative both the UK and Scottish governments recognise this accordingly.”

The report evaluated the economic impact of the UK university sector’s teaching, research and innovation activities, broken down by nation and region.

The figures do not include the the economic impact of education exports.