This is what’s at risk if the government doesn’t do more to support universities

Following a report into the university’s economic impact on Coventry, Vice-Chancellor of Coventry University and Group CEO, Professor John Latham CBE, says it shows why government support for universities is essential for economic development in the communities they serve.

I am incredibly proud of the positive impact Coventry University has in so many varied ways in what is a thriving city. Across the Group, we pride ourselves on not only delivering a top-quality education for our undergraduate and postgraduate students but also preparing learners for the working world through apprenticeships and upskilling those already in jobs as the demands on workers change.

Simply put, this is not just a place to learn – we want to make a real difference to our community. That means we will support the people that live, work and learn here to add to the success story of our city, the region and the country.

A recent report produced by Hatch demonstrates Coventry University’s economic impact. It shows that our organisation contributes thousands of jobs in Coventry and across the UK and, while more than half of the local jobs come from the university’s direct activity, nearly 2,500 are the result of student spending, staff expenditure and the supply chain effect.

It is no secret that the university sector, already acknowledged as drivers of local and regional economies, are under financial pressures that can in large part be traced back to previous decisions made in Westminster. The effects of this have already been felt across our Group and this report shows that the impact will likely reverberate across the city of Coventry and beyond.

When you also consider our Group’s wider positive impact in sustainability, healthcare and the creative sector, it becomes clear that the government, and other organisations responsible for the ongoing prosperity of communities in Coventry and the West Midlands, must do more to protect and maximise the economic and social value of institutions like ours.

Economic development

The risks associated with a lack of government support begin with employment and the local economy.

Creating better futures and ensuring long-term prosperity for local communities is at the heart of what we do. The figures in Hatch’s report reflect this, highlighting our gross quantifiable economic footprint of 6,730 FTE jobs and £320m in Gross Value Added (GVA) in Coventry. For every four direct jobs on campus, a further three are supported in the city through the multiplier effect generated by the university. One in every 20 jobs in Coventry can be traced back to the presence of the university.

Our indirect effect on the local economy has also led to successful job creation. The report shows that we spent roughly £100 million with UK-based suppliers on goods and services to support our ongoing operations and capital investments, of which about 16% was with suppliers based in the WMCA area. Similarly, the economic activity generated by the spending of wages and salaries had a hugely positive impact on Coventry’s economy. The report estimates that the significant expenditure of colleagues, along with those in the supply chain, supported £20m in GVA and 220 in FTE jobs in the city.

These figures show the role that our university plays as a driver of local economic development, what we could build on and what is at stake.

Driving growth in key sectors

This is not, however, simply a cry for financial support. Rhetoric and policy must also be addressed if we are to mitigate the risks to key public sectors.

Healthcare, for example, plays such an important role in our society, and, thanks to our ongoing commitment to widening access, we are proud to act as a ‘linchpin’ in generating the pipeline of healthcare professionals of the future. The figures provided by Hatch show that one in three people employed in Coventry’s healthcare sector are a product of the university.

Similarly, our ability to support the transition to net zero and champion clean growth needs to be enabled and empowered, not squeezed. We aspire to be one of the UK’s first net zero campuses with a decarbonisation strategy targeting an 8,100 tCO2e reduction by 2030 in support of the WMCA’s ambitious net zero by 2041 plan.

This, alongside our numerous pioneering research initiatives, showcases our commitment to a cleaner tomorrow, however, ongoing support is crucial if we’re to continue driving sustainable practices. Without it, our ability to foster industry collaborations, deliver innovative research and provide valuable teaching and upskilling opportunities that benefit our local community, is constrained at the time it is needed most.

Conclusion

Coventry University is far more than an education provider. We are a catalyst for change, tackling complex societal challenges and fostering sustainable development while supporting economic development in the communities we serve.

That is why, as universities continue to struggle with financial uncertainty, government support to deliver greater certainty has never been more crucial. I welcome the change in rhetoric from the new Labour government, but this is not simply a question of raising tuition fees. It is about delivering long-term policies around things like international student visas and Student Loan Company (SLC) payments that will support the HE sector and safeguard jobs.

Without change, we risk our ability to do what we do best – empowering students and communities to transform their lives and society through teaching, learning, research and enterprise.