On Wednesday 26 November, the Chancellor of the Exchequer Rachel Reeves presented the Autumn Budget.
The Budget confirmed that Government will work closely with local leaders, universities, and Northern businesses on the Northern Growth Corridor to grow the economy and attract inward investment, with a plan for the Corridor to be set out by early 2026. Funding for both the Local Growth Fund, and Mayoral Revolving Growth Fund was also announced, alongside £13 billion in funding split between seven mayoral combined authorities, including West Yorkshire and South Yorkshire, to invest in skills and infrastructure. This confirmation of funding will support growth both across the North and Yorkshire, and is a welcomed recognition from government on the wider role universities play in local economies and attracting inward investment.
YU also welcomes the protection of UKRI’s investment in core quality-related block grant and Higher Education Innovation Funding, that will result in a cumulative increase of over £425 million to support the economic contribution of the UK’s universities. However, the introduction of the International Student Levy, a new levy on higher education providers’ income from international students of £925 per student per year of study from August 2028, will have a significant economic impact of the region. Although YU supports the reintroduction of means-tested student maintenance grant, the levy risks undermining the benefits of these investments.
Commenting on today’s announcements, Professor Charlie Jeffery, YU Chair and Vice-Chancellor of the University of York, said:
“We welcome the Government’s commitment to regional investment, devolved funding, and its intention to work closely with our universities on the Northern Growth Corridor. We will work closely with Government, institutions, and partners, to secure positive outcomes for our region, including inwards investment and growth. The protection of UKRI funding streams also signals a recognition of the wider contribution our universities make both regionally and nationally.
However, we are disappointed that the Government has chosen to move forward with a levy on the tuition fees paid by international students. International students and graduates make a huge contribution to Yorkshire’s economy, and our global connections are essential to our innovation and growth. Despite the introduction of the levy, YU member institutions will strengthen their collaboration, and work in partnership with business, national, local and regional government, and communities, to drive productivity and prosperity, tackle inequality, and increase opportunities for people and places in the region.
