Impact of student spending shows importance of investing in universities

The report, Student contributions to the UK economy, published by the National Union of Students (NUS) and nef consulting (new economics foundation) found student day-to-day spending supports over £80bn of UK economic output.

The research highlights the dire economic implications that would result from a reduction in student enrolment in many areas across the country, and shows that this would be most severe in the most deprived areas.

Through its Knowledge Economy campaign, UCU has highlighted how investment in higher education in the UK has fallen significantly lower than in other comparable countries.

The UK invests 1.4 per cent of gross domestic product (GDP) in higher education, compared with the Organisation for Economic Co-operation and Development average of 1.7 per cent.

UCU general secretary, Sally Hunt, said: 'By quantifying the massive boost student spending brings to job creation and highlighting how it is a lifeline for some university towns, this report gives us yet another very strong reason to increase investment in higher education.

'In the UK we are now spending significantly less on our universities than comparable countries and now we can be sure that any negative consequences of that under-investment will reach far and wide, fracturing communities.'