The economic impact of the region’s universities revealed

Yorkshire and the Humber’s universities contribute almost £3bn to the UK’s economy according to a new report.

The Universities and College Union (UCU) has published economic analysis from July into the impact of 164 universities across the country. 11 of these are located within Yorkshire and the Humber.

University of York

If similar figures were to be attributed to the remaining nine universities in the region, including the other two Russell group universities, Leeds and Sheffield, it’s clear the economic impact of these institutions on the national economy is significant and therefore the role they can play in economic recovery is crucial.

Aside from the financial impact, regionally these institutions also employ over 48,000 people and create a talent pipeline of 68,360 graduates a year (based on the HESA statistics for 2018/19).

However, as a new academic year approaches in the shadow of Covid-19 and an exam results fiasco, what does the future hold for these institutions?

In April the UCU forecast the sector as a whole could lose £2.5bn in the 2020/21 academic year in tuition fees alone. The impact of this would be the potential loss of 30,000 jobs.

But the economic impact of these universities goes beyond the institutions themselves.

In Leeds the amount of student of accommodation under construction is equivalent to almost 2,800 beds according to Deloitte’s latest Cranes Survey and this is a picture that is echoed across many university towns and cities.

Renaissance Works, Huddersfield

Pervaiz explained that despite the challenges of Covid-19 work had continued on its developments but that the pandemic, as expected, led to a “downward turn” with regards to lettings when compared to previous years.

He explained however, that the business had actually “retained quite a large number of international students, around half” through lockdown – who due to a lack of flights, Government guidelines or perhaps feeling that it was no longer safe to travel, had remained in its developments.

Pervaiz added that he expects these tenancies to continue into the new academic year and that they are actively working with students who had originally booked to return in October but now won’t return until January.

Also, despite often being occupied by overseas students he said that this year following announcements by the Government including the removal of temporary student number controls for this academic year, the business has seen an “influx of domestic students requiring high quality living”. Which he concludes means he “is optimistic for the future”.

Ultimately the disruption caused by Covid-19 will affect every sector but as the media continues to warn of a “lost generation”, Government battles an exam results debacle and communities prepare for the future, it’s worth remembering that Yorkshire’s universities are more than a place of education!

They employ, they train and they drive wider economies. But what impact will Covid-19 have on this £3+bn industry over the next 12-18 months? Only time will tell.