University boosts UK economy by £4.14 billion a year
A major report just out says the University of Southampton generates £4.14 billion of annual impact across the UK economy.
The findings come from the policy and economics consultancy London Economics’ Economic Impact Report into the University’s economic and social impact during the 2020/21 academic year.
Approximately £1.6 billion of the identifiable regional impact occurs in the South East, of which a very significant proportion occurs within Southampton itself. After the pandemic, the University, its staff and its students will be one of the key drivers of the economic recovery in the Southampton region.
The report examines the economic impact associated with the University’s teaching and learning activities, research, enterprise and knowledge exchange activities, the contribution of the University’s international students to the UK economy and the impact the University has on tourism in Southampton.
Ranked 12th in the UK and in the top 100 globally, the University of Southampton is a world-class institution with campuses in Southampton, Winchester and Malaysia and is an important UK business. This year it celebrated the 70th anniversary of being the first University to have been granted the Royal Charter by Her Majesty Queen Elizabeth II.
Recognised throughout the world for its research, enterprise and knowledge exchange these disciplines alone contribute just over £2bn to the country’s economy.
The University of Southampton’s Science Park is a centre of excellence for innovation and is home to over 100 companies. In addition, with a turnover of £370m in 2020-2021, the University’s 72 spin-out companies boosted the UK economy by £928 million, also attracting talent and investment to the region.
In total, the University educated 21,000 students in 2020/21. There were more than 9,000 new students starting their studies at the University each of whom, on average, contributed approximately £134,000 to the UK economy as a result of their studies — much of it locally.
The University is a major employer, and creates and underpins employment in other organisations, amounting to over 16,000 jobs across the UK.
The University contributes £69m to Southampton’s tourism industry coming from around 23,000 study trips, business meetings and visits to see friends and family.
Professor Mark Spearing, Vice President of Research and Enterprise at the University of Southampton said: “We welcome this report which not only underlines the University’s importance to the UK economy but across the world. More than that, it demonstrates the far-reaching impact our research and enterprise has, leading on innovation and nurturing talent for the future. More directly, the huge impact we have on our host city Southampton, especially as our region emerges from the effects of the pandemic.”
Dr Gavan Conlon, Partner at London Economics and co-author of the economic impact assessment report said: “The economic impact of the University of Southampton on the UK economy is indisputable. Standing at a massive £4.14 billion, much of the economic impact occurs in Southampton and the South East.”
He added “Importantly, the University has a real and tangible impact on the lives and livelihoods of local residents. After the pandemic, the University, its staff and its students will be one of the key drivers of the economic recovery in the Southampton region.”
Mr Andrew Pritchard, also co-author from London Economics said “In terms of economic impact, the University of Southampton punches significantly above its weight. Of that there can be no doubt.”
Leigh Sara Timberlake, Group CEO of Business South, the independent representative of businesses in the Central South, said: “A major global business, the University of Southampton is a valued champion of the Central South and truly a jewel in the region’s crown, attracting talent from all over the world and contributing hugely to the regional economy.”
Key findings of the report:
- University of Southampton generated £4.14bn of economic impact across the UK in 2020/21.
- For every pound spent by the University, £7.40 was generated in economic benefit.
- Approximately £1.6 billion of this identifiable regional impact occurs in the South East, of which a very significant proportion occurs within Southampton itself.
- Importantly, the analysis indicates that every region and sector of the UK benefits from the activities of the University of Southampton. The economic impact of the University on the East of England was estimated to be approximately £100 million, while the economic impact on the North West and Yorkshire and the Humber were £83 million and £69 million respectively.
- University of Southampton research, enterprise and knowledge exchange provides its largest economic impact, £2.07bn across the UK economy in the academic year 2020/21.
- The economic impact generated by teaching and learning activities from new students starting their studies at the university in 2020/21 was £682 million.
- The economic contribution generated by first year international students in 2020/21 amounted to £553 million.
- The University of Southampton Science Park is a centre of excellence for innovation and is home to over 100 companies. In addition, with a turnover of £370m in 2020-2021, the university’s 72 spin-out companies boosted the UK economy by £928 million, also attracting talent and investment to the region.
- The University is a major employer, and creates and underpins employment in other organisations, amounting to over 16,000 jobs across the UK
- The University contributes £69m to Southampton’s tourism industry coming from around 23,000 study trips, business meetings and visits to see friends and family.