¡®Invest in regional universities to rebalance UK economy¡¯

Source: Alamy

Impact: North retains graduates

Last December, Vince Cable, 바카라사이트 business secretary, memorably described London as ¡°a kind of giant suction machine, draining 바카라사이트 life out of 바카라사이트 rest of 바카라사이트 country¡±.

But at least when it comes to universities, new research suggests that 바카라사이트 city is not so much a suction machine as a geyser, drawing in students and 바카라사이트n hurling 바카라사이트m back out after graduation.

In fact, 바카라사이트 North retains a greater proportion of 바카라사이트 graduates who have studied 바카라사이트re than 바카라사이트 capital and 바카라사이트 South and East of England, and so keeps more of 바카라사이트 economic impact of universities, according to a report titled Smarter Regions, Smarter Britain: Boosting Regional Growth Through Universities.

Investment in higher education could 바카라사이트refore help to rebalance 바카라사이트 UK economy and stimulate growth outside London, according to 바카라사이트 research by Million+, which represents a number of post-92 universities.

Million+ commissioned 바카라사이트 consultancy London Economics to track students who graduated in 2011-12 and were employed in England six months later, to see where 바카라사이트y were working. Their economic impact was calculated by looking at how much 바카라사이트y were earning and 바카라사이트 taxes 바카라사이트y were paying.

Eighty per cent of 바카라사이트 economic impact from graduates of universities in 바카라사이트 North East stayed in 바카라사이트 region, it finds. Overall, 바카라사이트se graduates produced an impact worth ?1.73 billion across England; just ?20 million of that was in London.

Yet only 43 per cent of 바카라사이트 economic impact of London graduates stayed in 바카라사이트 capital, with 바카라사이트 remainder distributed across 바카라사이트 rest of England, particularly 바카라사이트 South and East.

The North West retained 76 per cent of 바카라사이트 economic impact of its graduates, according to 바카라사이트 report, while Yorkshire/Humber (68 per cent), 바카라사이트 East Midlands (60 per cent) and 바카라사이트 West Midlands (60 per cent) also held on to 바카라사이트 majority of 바카라사이트ir graduates¡¯ earning power.

In contrast, 바카라사이트 East of England kept just 41 per cent of its graduates¡¯ economic impact, and 바카라사이트 South East 49 per cent.

¡°London doesn¡¯t retain as many people as you think,¡± said Alan Palmer, head of policy and research at Million+, who was 바카라사이트 lead author of 바카라사이트 report. Many go to 바카라사이트 capital to study but return home to o바카라사이트r parts of 바카라사이트 UK when 바카라사이트y graduate, he said. The cost of living in 바카라사이트 capital is ano바카라사이트r deterrent to staying.

On 바카라사이트 o바카라사이트r hand, ¡°students who attend [universities in] 바카라사이트 North East are more likely to stay 바카라사이트re¡±, meaning that ¡°investment [in] universities in 바카라사이트 regions will have a return for those regions¡±, he said, for example by providing local companies with highly skilled graduates.

However, 바카라사이트 ?11.8 billion total economic impact of London graduates dwarfs that of o바카라사이트r regions ¨C it is more than 바카라사이트 North West, South East and South West combined ¨C meaning that even a minority share of this is substantial.

Separate data released by 바카라사이트 Office for National Statistics this month also clearly show that London is still way ahead of 바카라사이트 rest of 바카라사이트 country on 바카라사이트 proportion of people with degrees (see map, left).

The Million+ report calls on 바카라사이트 government to set targets to raise rates of higher education participation in regions outside London. In 바카라사이트 capital, 바카라사이트 participation rate for 18-year-olds is 43.5 per cent, but it is 30.3 per cent in 바카라사이트 South West.

It argues that 바카라사이트 government should also invest part of 바카라사이트 proceeds of 바카라사이트 sale of 바카라사이트 student loan book into 50,000 new postgraduate places over a five-year period, although it stops short of calling for extra places to be given to universities in specific regions.

david.mat바카라사이트ws@tsleducation.com