Russell Group Universities Estimate £9bn Contribution to the UK Economy

UK’s top universities will soon be seeing a grand boom in infrastructural facilities.  This boom is estimated to reap with it “thousands of new jobs,” empowering growth for both labour market and the UK economy.

The collective employer is traced from twenty-four Russell Group universities, Birmingham and Sheffield Universities, to name a few.

The report in detail

A total of sixty-nine capital projects have been scrutinised for the report.  Building plans that spanned from “four years to March 2017” have been analysed – the result of which projected an invested sum of £9bn.

This figure was allotted for a wide range of university infrastructures:

• student accommodation
• medical research facilities
• science labs
• office space
• on-site start-up business facilities

The impact of these investments will not be restricted within the higher educational institutions.  An estimated figure of £44.3bn will seep through the “UK economy over the next 25 years.”  These figures are sufficient to promote “37,800 temporary construction jobs and over 60,000 permanent jobs.”

Raising standards in facilities

The increased campaign for such facilities is essential to strengthening UK universities’ brand.  Russell Group director, Wendy Piatt, reportedly said that such investments “help keep UK universities among the world’s best.”

Supporting this trend is a recent poll result ran through two thousand students.  The result shows that students, indeed, consider the “quality of facilities” in choosing a university.  The flow of investment running to fuel capital projects shows how well institutions have caught up in terms of looking at students’ needs.

Employing institutions

Some of the investing institutions have been named, each of which direct their investments to facilities that will foster better learning and living experience for its students.

• Birmingham University will soon be having its “50m (165ft) swimming pool, a state-of-the-art library and a cultural centre.”  The estimated budget peaked at £55m.
• Manchester University has its eyes set on the “new engineering campus and redeveloped business school.”  This project is estimated to consume ten years and will be involving a “£1bn plan.”  The inclusion of its business school could strengthen the institution’s place against its European counterparts (as observed in the recent QS Global 200 Business Schools rankings).
• Sheffield University is the leading investor among the Russell fleet.  Its “£81m engineering building” is expected to bring an estimated 1,600 engineering students, 400 more for its staff, 500 construction jobs and a whooping £44.5m to the economy.

Capital spending had seen signs of recovery since last year of March.  The Higher Education Statistics Agency reported the universities’ total capital spending to have reached £3.1bn.

In context to higher education institutions across the globe, UK is admittedly behind.  Director Piatt, for instance, expressed eagerness to do more:

We will keep investing on behalf of our students and academics, but the rest of the world are snapping at our heels and spending money to match their ambition. We must do the same. Director Piatt (BBC News)

Investments made by the educational sector certainly create a magnified impact, from its internal stakeholders to the economy.  The twenty-four Russell Group members’ spending on facilities does not only reflect its desire to better its brand or encourage admissions.

It also goes to show that institutions do spend for its students – the relationship is incredibly symbiotic, after all.

Will this huge spending help in wooing more local and international students?