Call to support universities and protect economy

£2.5bn benefit for region says study

UNIVERSITIES SUPPORT tens of thousands of jobs and plough billions into Yorkshire’s economy, according to a study, amid nationwide concerns that some universities could go bankrupt.

The University and College Union (UCU), which commissioned the study, called for a “clear and coherent” plan to support educational capacity and prevent thousands of job losses as many universities struggle financially.

The union started its Fund the Future campaign last month, calling on the Government to provide financial guarantees to stop thousands of staff losing their jobs at a time when education would be needed to drive the recovery from the virus pandemic.

The study details the billions generated for local economies by university spending and staffing. It warns of the wider “economic shock” on towns and cities if any university was to struggle as a result of financial instability.

UCU general secretary Jo Grady said: “Allowing universities to fail because of the health

crisis will mean the economies of many of our towns and cities will also fail.

“Universities are vital in providing educational opportunities, but they also have a huge impact in creating local jobs, supporting local businesses, and attracting business to the area.”

Universities are often among the largest local employers, the analysis by Hatch Regeneris for the UCU shows, supporting around one additional job for every person employed.

The report examined the impact of universities in Yorkshire and Humber. In Leeds and Sheffield, it found universities indirectly employ more than 37,000 people, contributing more than £2bn to the area’s economy, while Bradford and Hull generate a further £490m in economic spend and support over 6,000 jobs.

Furthermore, in the wake of the Government’s pledge to ‘level up’ communities, the analysis highlights the relatively high wages such skilled jobs can bring.

The review analysed 74 studies and modelled a further 90 to produce a detailed picture of universities’ role in the nation’s economy. Ms Grady said: “With every university job leading to another job in the local area, it is now vital that instead of talking our universities down the Government protects them.” The Department for Education was approached for comment.