"Our flagship report in collaboration with PWC UK highlights the vital role that universities play in regional development, and calls for a balanced approach to their educational, research, and civic role."

Andrew Connors
Head of Higher Education at Lloyds Bank
Published on: 09 December 2024
5 min read

For centuries, universities have played a pivotal part in education, research and ultimately in shaping a better society. Increasingly, their contributions go beyond academia – significantly benefiting both local and regional economies through job creation, income generation and expertise.   

Indeed, for every one pound invested in higher education research nearly five is generated an additional annual economic output across the UK economy. This spells good news for the private sector too, resulting in a staggering £40 billion worth of increased productivity every year.1  

Our latest report co-authored with PwC UK highlights the multifaceted contributions of universities to regional development, and calls for a balanced approach to their educational, research, and civic roles to help them thrive long-term.   

Embracing this agenda is not without challenge. In particular we highlight a need to focus on five themes: Purpose, Collaboration, System Navigation, Capability and Culture, and Understanding Value which are described in detail in our report. Encouragingly, we also found that many institutions are rising to this challenge; the opportunity for all universities - and for the UK - is to do so at scale, achieving their potential as drivers of growth.       

Hit the link below to access the report, or read on for key findings.  

 

Why are universities so important to regional growth?  

Universities – from small, specialised institutions to the larger establishments – are vital economic engines within their communities, bringing immense benefits to their regions.   

While the role institutions play in education and research is extremely important, their civic contributions are equally vital yet often overlooked. Universities provide employment opportunities, generate income and offer expertise that benefits local businesses and industries – often at the forefront of driving innovation.  

For example, our report points out that universities engage in community service, support local initiatives, and help generate a sense of civic responsibility among students and staff. These civic contributions are of crucial importance and cannot be overstated; these activities not only enhance the social fabric of their regions but also contribute to economic stability.

Navigating changing environments and global challenges  

Right now, there is an evolving political landscape in the UK with increasing devolution and we continue to see significant uncertainty around the world, with issues such as the transition to net zero and energy security requiring innovative approaches. But, alongside these challenges , come numerous opportunities for universities too.   

For example, while universities certainly have to adapt to new political realities and regulatory frameworks, they also have the opportunity to take leading roles in areas such as sustainability and safe adoption of AI.   

By carrying out quality research and leveraging the knowledge and experience of specialists, as well as innovating in new technologies, universities can and are playing a crucial role in finding solutions to these challenges.  

But for universities to effectively engage with external stakeholders, they must have clear systems, spaces, and the right people in place. This can involve creating a “single front door” approach, making it easier for businesses, including small firms, to access and engage with university resources.   

As the report points out, by streamlining access and providing clear points of contact, universities can get the best from their ties with industry. Ultimately, this will lead to mutual benefits such as increased research funding, improved student employability and greater innovation.

     

Building success through partnership

Long-term partnerships between universities, businesses, and public bodies are essential for driving regional growth and development. 

But cooperation between higher and further education institutions is just as crucial. You see, it’s this kind of alliance allows for the sharing of resources and expertise, more competition and, ultimately, enhancing educational outcomes. In short, then, by working together, these institutions can create a more cohesive and effective educational ecosystem that benefits all stakeholders.

In addition, for universities to effectively engage with external stakeholders, they must have clear systems, spaces, and people in place. This includes establishing a ‘single front door’ policy – a welcoming entry point that clearly communicates an institution's offerings to potential partners, backed by staff who are experts in engagement and business development – for external inquiries.

It's only by simplifying these processes that external partners will be able to access the resources and support they need more easily, leading to more successful outcomes and initiatives.

The University of Salford is rethinking its role to serve not only its students and staff, but to be a true anchor institution woven within the fabric of the city. Established in 1896, the University began as The Royal Technical Institute and is deeply rooted within Salford, one of the world’s first industrial cities. Labourers in 19th century Salford ‘invented the weekend’ so building equity and prosperity are strong themes guiding the University. 

Download our report to find out more (PDF, 3MB)

Looking ahead  

Support for higher education is at the very heart of our purpose of Helping Britain Prosper. It’s for this reason that, across the United Kingdom, Lloyds has a relationship with over 70% of higher education institutions and is the lead bank to 30% of larger universities. Similarly, as a trusted advisor, PwC UK has cultivated deep relationships across the UK higher education sector – working with around a third of higher education institutions across a range of areas in the last year alone.   

I believe that our “Drivers of Growth” report makes a compelling case for the critical role of universities in national, and regional prosperity. By embracing their civic responsibilities and forming strategic partnerships, universities can enhance their financial sustainability and contribute more effectively to economic growth.   

It’s our belief that when universities include their civic role as part of their core strategy, this will lead to a range of benefits, including increased student participation in community projects, better employment opportunities for graduates, and more industry investment in local initiatives – supercharging innovation, and supporting a more prosperous society. 

  

Andrew Connors
About the author Andrew Connors

Head of Sector and Region

Andrew is Head of Higher Education at Lloyds Bank and also national lead for Lloyds’ UK Government and large Charities business.

He is also Midlands Regional Head for Corporate & Institutional Banking. Over a thirty year career at Lloyds Banking Group he has held a variety of regional and national roles across the Commercial and Retail Bank.  Andrew is also a Board Director, Birmingham Hippodrome Theatre, an elected member of the CBI West Midlands Council and an Advisory Board Member at Birmingham City University Business School.

Follow Andrew on LinkedIn.

Andrew's background Read Less

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