A new report from Universities UK lays out an ambitious plan to increase access to higher education and boost universities’ role in growing the economy. The report outlines a series of reforms aimed at breaking down barriers to opportunity, training future healthcare workers, supporting the transition to a net-zero economy, and improving the efficiency of universities.
To achieve these goals, the report argues, the university sector needs to change. It must become more efficient, collaborate more closely with other institutions, and rethink how it operates. The report also calls on the UK government to stabilize university finances and increase public funding, shifting more of the cost of higher education from students to the government.
Engines of growth
“Universities are vital to economic growth,” the researchers note. “For every pound spent on them, the government sees a return of £14. But we face a choice. We can either invest in universities to help them continue delivering on national priorities and opening doors for a wider range of people, or we can let them fall into decline. The right path is clear, and we are prepared to meet this challenge head-on.”
The report’s key recommendations include:
- A drive for greater efficiency within universities to transform how they work.
- Expanding access to higher education for students from underrepresented areas and backgrounds, partnering with schools and colleges.
- Collaborating with local businesses, chambers of commerce, and regional leaders to stimulate local and regional economic growth.
To make these reforms possible, the report calls for a new partnership between universities and the government. Universities are willing to play their part, but the government must act by providing more funding. With tuition fees in England virtually frozen for 12 years, universities’ finances have been severely weakened. The report suggests a two-step approach: first, stabilize university funding, and then help transform the sector so it can fully contribute to the nation’s economic goals.
The blueprint highlights the broader public benefits of universities beyond just boosting individual earnings. Currently, the government in England covers only 16% of the cost of a university degree—one of the lowest levels among developed countries. Universities argue that this share should be increased to ensure that both taxpayers and graduates contribute more evenly.
Research from London Economics shows that the UK higher education sector’s total impact was £265 billion for the 2021/22 academic year. The report underscores that students who pursue higher education tend to earn more, and it reinforces the critical role universities play in driving growth and productivity across the UK.
