Responding to the Chancellor’s Autumn Statement today, Nicola Dandridge, Chief Executive of Universities UK (UUK), said: “The introduction of a VAT exemption for cost sharing is good news for universities. It was one of the key recommendations of Universities UK's recent report on efficiency in higher education.

“Universities have wanted to develop more cost-effective operating models, and more creative collaborations with external partners. But to date, the VAT rules have acted to block this. We hope today's announcement will address this issue.”

Nicola Dandridge added: “The UK's future economic growth will depend on investment in graduate-level skills and research and innovation. The plans to support research and innovation initiatives throughout the UK are to be welcomed, alongside attempts to boost STEM provision.”

Commenting on how universities can play a key role in helping to rebalance the economy, Nicola Dandridge said: “Higher education rates now as one of the UK's most successful and thriving export industries. Despite stiff and increasing international competition, this is an area in which the UK truly excels.

“Given the right conditions, UK universities intend to expand their international activities over the next decade and beyond. The announcement that government will launch HE Global is a positive step in this regard. The aim of the initiative is to provide information and advice to universities looking to increase their international activities.

“For universities to contribute to growth, it's important that all government policy is geared towards supporting the sector’s activities.”

Overall, the international activities of universities contributed around £8.3bn to the UK economy in 2010. This covers all of the global activities of universities including the fees that are paid directly to universities from international students (£2.6 billion) as well as the additional spending from students and families once here (£4.5 billion), Transnational Education (TNE), research grants, consulting, licensing and donations, all of which benefits the UK economy.

Notes

1. The Autumn Statement 2011 is available to download from the Treasury website.
2. The HE Global initiative will bring together into one central resource, UK Government departments and sector organisations with a role in supporting UK higher education institutions' transnational education activities. It will provide a range of different services, including a website, helpline and outreach activities. The service will be launched officially on 25 January 2012 by the Foreign Secretary, Rt Hon William Hague MP, and the Minister of State for Universities and Science, Rt Hon David Willetts MP.