With university fees increasing and the majority of universities set to charge the full £9,000, what does this mean for city economies?
Yesterday’s release of the UCAS university applications data showed that there was a 5 percent fall in the number of degree applications for the academic year starting next September.
We’ve broken down the data to look at what this looks like across cities. Here are the headline findings:
The top 10 and bottom 10 cities can be seen in the table below.Source: UCAS, http://www.ucas.com/about_us/media_enquiries/media_releases/2012/20120130appdig
Note: This data is for degree applications to higher education institutions
Although the variation in these numbers is very interesting, they should be viewed with a little caution. Firstly, the introduction of higher tuition fees is likely to have caused a spike in applications last year as students opted for a cheaper degree over a gap year. This is most striking for Derby – its university had a 23 percent increase in applications last year. And a similar pattern is seen in Sunderland. Secondly, these figures are for those students who applied before the 15 January deadline – more students are likely to apply before the academic year begins. For these reasons it is better to look at several years data before passing judgement on the impact of higher tuition fees.
There could be significant implications for the business base in cities such as Derby and Hull if the decrease in demand for places at their universities is persistent. Our report Starter for Ten showed that the biggest economic impact that universities have on their local economies is through the staff they employ and the students they attract. Although these numbers reflect applications, rather than entrants, a continuation of these patterns would mean that student spend in these cities would see a large reduction. The Centre will keep a watching brief on these figures and their implications for cities.
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