Oxford Economics Report Highlights University of Bath’s £510M Economic Footprint

Bath’s Academic Anchor: University Drives Growth, Innovation, and Community Impact

Universities are widely acknowledged as dynamic engines of economic growth and employment generation. Their influence extends well beyond the realms of education and research, encompassing direct employment, operational expenditure, student spending, and knowledge exchange activities. Consequently, these institutions serve as anchor organisations within their communities, stimulating innovation, supporting local businesses, and enhancing regional productivity.

In support of this, Universities UK reports that the higher education sector contributes approximately £265 billion to the national economy and supports over 815,000 jobs in England alone. Moreover, empirical research suggests that a 1% increase in the proportion of degree-holders within the workforce can elevate long-term productivity by 0.2% to 0.5%. Universities also play a pivotal role in entrepreneurship, as evidenced by the existence of over 21,000 active spin-offs and start-ups across UK institutions in 2020–21. Within this national framework, a recent Oxford Economics report highlights the University of Bath’s significant economic contribution. In the 2023/24 academic year, the University added more than £510 million in gross value added (GVA) to the Bath & North East Somerset economy, representing nearly 9% of the area’s total GVA. It also supported over 7,000 jobs, thereby positioning itself as the second-largest employer in the city.

Furthermore, the University’s 20,000+ students collectively spent an estimated £230 million locally, averaging £11,400 per student, which sustained more than 2,300 jobs, including 880 linked to international students. These roles were primarily concentrated in retail, accommodation, transport, and leisure sectors. In addition, visitors attending open days and graduation ceremonies contributed a further £9 million to the local economy.

Vice-Chancellor Phil Taylor emphasised that these findings reaffirm the University’s central role in the city’s economic and social fabric. He cited strategic initiatives such as The Brunel Centre and the Global Talent Fund award as key examples of partnerships that attract talent and foster innovation. The report also underscored the University’s multifaceted economic impact, which includes operational activities, supply chain spending, and expenditures by employees, students, and visitors. Significantly, the University spent £16 million on local procurement, thereby benefiting nearby businesses such as Pattersons, a family-run firm in South Bristol. Craig Banwell, the company’s Key Account Manager, noted that this partnership had facilitated business growth, advanced sustainability goals, and enabled reinvestment in the local community.

The University’s contribution to innovation was further demonstrated through the SETsquared Bath Innovation Centre, which supported 43 start-ups and scale-ups in 2023/24. These ventures generated £15 million in turnover and secured £1.3 million in equity and grants. Additionally, Oxford Economics recognised the University’s broader civic engagement through public events, volunteering, health initiatives, and access to sports facilities. In 2022/23, over 54,000 people, more than a quarter of Bath & North East Somerset’s population, attended events hosted by the University. The University of Bath exemplifies the transformative economic and social role of higher education institutions in driving regional prosperity, innovation, and community cohesion.

Editor’s Note:

The University of Bath has clearly shown how a university can play a major role in boosting the local economy. In the 2023/24 academic year, it added over £510 million to the Bath & North East Somerset economy and supported more than 7,000 jobs, making it the second-largest employer in the city. Its students also contributed by spending around £230 million locally, which helped create and sustain jobs in areas like retail, transport, accommodation, and leisure. Beyond spending, the University supported local businesses through procurement and helped new companies grow through its innovation centre. It also welcomed over 54,000 people to public events, showing its strong connection to the community. Other universities can learn from Bath’s approach by building strong partnerships with local businesses, supporting start-ups and innovation, and encouraging students and visitors to engage with the local area. Investing in community programmes and public services also helps strengthen ties between universities and the regions they serve.

Skoobuzz underscore that when universities connect education with business and community life, they become key drivers of regional growth and opportunity.