London’s universities are central to our city’s economic dynamism – as employers, as talent incubators, and as world-leading hubs of innovation.
But our capital’s higher education sector now stands at a crossroads. While many institutions forecast growth in the years ahead, others face mounting financial pressures. Unlocking the full potential of our universities as engines of growth will be vital to accelerate economic growth in London and the UK.
Delivering on that vision was the focus of our latest sectoral deep dive for the London Growth Commission.
Higher education underpins London’s growth mission in multiple ways. Universities are major employers in their own right, drawing in global talent and investment. They cultivate the workforce of tomorrow, supplying the skills London firms need in an era of rapid technological change. They also push the frontiers of discovery across sectors from health to AI – strengthening the city’s competitiveness on the global stage. And through BusinessLDN’s leadership of London’s Local Skills Improvement Plan (LSIP), we’re ensuring those skills needs are shaped directly by employers – bringing higher education partners together to co‑design pathways that support both the Industrial Strategy and the London Growth Plan.
Yet the biggest near-term opportunities for growth – notably from international students – are threatened by perceptions of whether London is a truly welcoming and safe place, as well as housing availability and affordability.
Our Growth Commission is exploring steps that can help to address these challenges in both the short and medium term. One quick win could include a new international marketing campaign championing London’s higher education offer to accentuate the city’s strengths to prospective students – countering safety concerns and showcasing the vibrancy of student life here. Leveraging London’s brand more effectively could be a major asset to support growth.
A review of subject-level funding to better align with priority sectors in the industrial strategy could also help to prioritise resource where it can deliver the biggest bang for buck.
Beyond immediate policy tweaks, other changes are required over the medium term. For example, employers must be brought into the design of courses to ensure graduates have the skills – including in AI – that business needs today and tomorrow.
London’s higher education sector is a jewel in the city’s economic crown. But in the face of growing global competition, we need policymakers to champion its role and tackle barriers inhibiting growth. Acting now is vital to ensure London remains the best city in the world to live, work, do business, and study.