Lancaster and Northern Universities Fuel £18.8B UK Boost
A new report by leading consultancy London Economics has found that the eight Northern research-intensive universities that comprise the N8 Research Partnership generated £18.8 billion in economic impact for the UK in the 2021-22 academic year.
The report evaluates the economic value of N8 universities’ research, knowledge exchange activities, and institutional expenditures. The report confirms that the N8 universities – Lancaster, Durham, Leeds, Liverpool, Manchester, Newcastle, Sheffield, and York – play a critical role in supporting economic growth through both innovation and institutional investment.
From healthtech and ageing research, to materials science, biotech and advanced manufacturing, N8 universities work with partners to solve real-world challenges. They support local industries, accelerate the growth of start-ups, and create high-value jobs – all while contributing to the UK’s global competitiveness in science and innovation.
Key findings from the report include:
The report also highlights the regional impact of the N8 universities, with approximately £12.2 billion of the total economic benefit geographically attributable. Of this, a significant £9 billion (74%) was concentrated in the North of England, reinforcing the N8’s pivotal role in the Northern economy. The remaining £3.2 billion was distributed across the rest of the UK.
While the report focuses on core university activities, it notes that the true economic contribution is even greater when considering student spending, tourism, and the long-term benefits of graduate employment and workforce productivity – impacts not included in the primary estimate.
The report comes amid rising financial pressures in the higher education sector. London Economics warns that the current funding environment may jeopardise the ability of universities to maintain their level of economic contribution, potentially undermining national efforts to promote innovation and regional economic development.
Professor Charlie Jeffery, Chair of the N8 Research Partnership, said:
“In these challenging and volatile times, the UK Government needs to focus investment where it can deliver maximum return. This analysis offers a blueprint for how to do exactly that – by working with the N8 universities to unlock the full power of research, innovation and engagement across the North. What it reveals is not a crisis to be managed, but an opportunity to be seized. With the right support, these institutions can do even more to drive the outcomes that matter most: stronger regions, smarter public spending, and a more productive UK economy.
“In that sense, this report is more than a record of impact. It is a map – and a mandate – for purposeful, place-based partnership. By backing institutions that are already delivering, we can build the conditions for sustainable growth, economic resilience, and national renewal.”
Professor Andy Schofield, Vice Chancellor of Lancaster University said:
“This report evidences how northern universities bring powerful, measurable benefits to the economy. We provide tangible jobs and new skills, and attract investment, whilst also making a significant contribution to national prosperity. Lancaster University is proud to be a part of this report and we celebrate this economic impact alongside our globally recognised research that improves the lives of the people of Lancashire, the UK and beyond.”
Dr Annette Bramley, Director of the N8 Research Partnership, said:
“This report makes clear that N8 universities are engines of economic prosperity for the North and the entire UK. Our research, partnerships and institutional investments are not just about academic achievement – they are about creating real-world impact. It is vital that we safeguard this contribution in the face of financial challenges.”
Jack Booth, Senior Economic Consultant at London Economics and lead author of the report, said:
“The report highlights the substantial economic impact associated with N8 universities, with £18.8 billion of economic impact generated across the universities’ research, knowledge exchange activities and institutional expenditures in 2021-22. In fact, the impact is likely to be even larger, as the analysis does not consider the impact of universities’ teaching of UK-domiciled students or the impact of international students. This means that the overall impact of the N8 universities on the UK and Northern economies is likely to be much larger than the estimated £18.8 billion.
“Universities have real world impacts up and down the country. These universities’ activities supported more than 75,000 FTE jobs in the North of England, so the contribution to their local economies is clear.”
The N8 Research Partnership is a collaboration of eight of the most research-intensive universities in the North of England, working together to deliver collective research excellence and to drive economic growth and societal benefit.
To read the report in full, please visit https://www.n8research.org.uk/media/LE-Economic-impact-of-N8-universities-Final-Report.pdf.
To access case studies demonstrating N8 universities’ contribution to economic growth, please visit https://www.n8research.org.uk/work-with-us/regional-growth/kickstart-economic-growth/
https://www.lancaster.ac.uk/news/lancaster-university-part-of-188-billion-northern-research-boost-to-uk-economy