University of Plymouth student fees hike 'may hit city's economy'
THE University of Plymouth's decision to raise tuition fees to £9,000 a year could hit the city's economy, an influential research organisation says.
Plymouth is one of the top ten cities where undergraduate spending accounted for up to 10per cent of the total economic activity, according to a Centre for Cities study.
The University of Plymouth announced last week that fees would rise from just over £3,000 a year to £9,000 for students who start their courses from September 2012.
But a leading city businessman defended the tuition fee rise which he said was needed to keep the whole university financially viable.
Richard Thomas, chairman of the Federation of Small Businesses in Plymouth, said: "If we did not have a financially viable and vibrant university that would have a big impact on the local economy.
"If the university has calculated that £9,000 is what it needs to protect its interests then I feel that it is protecting the interests of the local economy at the same time.
"The impact of the university goes beyond student spending."
A university spokesman said: "We believe that Plymouth's rising national profile, its excellent track record for innovative teaching and learning, and its strong performance in terms of graduate employability, will ensure that this university remains a first-choice, first-class destination.
"There is no room for complacency and we are launching a national campaign which will help explain how the new system will work for prospective students. There are key messages which we need to get across, such as the attractiveness of the university and the city, its accessibility, and the fact that even at £9,000 graduates will repay less than they do at the moment on a monthly basis.
"Fees should be no barrier and we have a generous package of support measures to help students."
A Plymouth City Council spokeswoman said: "This research has raised some interesting points as it shows the importance of student spending to the city's economy, although the university is also a driver of economic growth through its research.
"The figures are taken from 2008 at the start of the recession and may not reflect today's spending levels.
"We are working more closely with the university to ensure the city is doing all it can to encourage growth in key areas. We have worked alongside the university to submit an expression of interest for the creation of an enterprise zone that would provide breaks for fledging businesses in marine, renewable energy and advanced engineering, areas where the university has considerable expertise."
The Centre for Cities said that student spending accounted for up to 10per cent of the total economic activity of Plymouth, Cambridge, Coventry, Oxford, Dundee, Swansea, Hull, Brighton, Stoke and Nottingham.
This could change if students became more selective about where they study, or decided not to go to university at all because of rising costs, it says in a report.
Centre for Cities analyst Paul Swinney said: "Universities, and the cities they are based in, face some challenging times.
"Universities have needed to revise their fee structures, but it is important that cities understand that decisions made about fees, students and staff will have implications for local economies."
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by Undisclosed, Student, Mutley
Friday, May 06 2011, 2:06AM
“Certain people are putting forward the point that university will suffer from this situation.
In actual fact, with this system as correctly proven by @Still paying off student loans from 94-200, it will actually gain, as it will have enough funding to be able to continue offering bursaries for those who need them and continue providing and improving the aims to which a university exist for.
In regards, to JJ's comment, why would people go to Plymouth instead of Brighton, Oxford Brookes, or Bath Spa? Well to start with you make comparison to Plymouth against universities that do not directly compare (exception being Oxford Brookes) with the most recent University league tables having been released recently it is shown that both Brighton and Bath Spa are of a significantly lower standard of education and student satisfaction, and the difference between OB and Plymouth is pretty irrelevant, with a 0.1% higher score for OB.
One thing that alot of you seem to be missing the point of is, students would rather take into account the reputation of the university in relation to the course they intend to study rather than the overall reputation of the university.
What I believe the local communities should take into account is what happens when the students go? You lose out on the economic gain of having students around. Plymouth has strong relationships with many of the other educational bodies in the area, most of the colleges only exist due to partnership with the university, if they were to collapse, the local economy could end up in a position in the future which most will complain about, and then realise that the rash decisions made in the past cannot be reversed.”
by JJ, The nick
Thursday, May 05 2011, 3:52PM
“Would be interesting to know how many students will not apply for university due to the fee hike ?
That said i don't see why anybody would pay £6/9000 to go to Plymouth University !
Not a great university with poor night life ,bad transport links and in the middle of no where.
If you going to pay the new fees why not go to Brighton Bournemouth Bath Spa or Oxford Brooke ?!!!!”
by johnno, pennycomequick
Thursday, May 05 2011, 2:37PM
“Does that mean the houses in the the street where I live , will have familys living in them .
No more 24/7 partys .people will have a good nights sleep ,befor they go to work .
We shall be able topark our cars near our homes .
I dont think we will miss the students”
by David, St Austell
Thursday, May 05 2011, 1:36PM
“These are not fees just loans to be paid when in receipt of a very good salary. The actual money, our taxpayers money, goes to the universities so they are the winners. If the Southwest graduates choose to work in the Sourhwest they are unlikely to have to pay off anything if the salaries here are any guide. My nephew got his degreesome years ago and still has not found a suitable job. He is working however, albeit for a low wage, not whinging like so many of the students who protest about these "fees".”
by Brian, Plymouth North
Thursday, May 05 2011, 12:15PM
“As Leo said Cambridge is much better connected and much closer to Londons worldwide transport links and booming economy than Plymouth,only about 75 minutes in fact by train from Cambridge to Londons Kingscross station(itself only100yards or so from St Pancras station the Terminus of the Eurostar high speed rail link to Europe/only 2 hours to Paris) with all that implies for students on their jobs and leisure life both now and in the future.So its not surprising it economy benefits big time from the ¿London effect¿ compared to peripheral Plymouth.”
by Kay, Plymouth
Thursday, May 05 2011, 11:45AM
“Hypocrite, Plymouth - how do you know it's the same residents complaining now? Do you make notes of names from previous news comments?”
by Simon, Plymouth
Thursday, May 05 2011, 9:55AM
“@ Still paying off student loans from 94-200
Are you Nick Clegg or something?? Straight out of the Literal Democrat party spin manual”
by Hypocrite, Plymouth
Thursday, May 05 2011, 9:55AM
“Interestingly, Plymouth residents do nothing but moan about students in the city. Yet, when there is the possibility of less coming in, and therefore less money, the same residents are complaining that the University and Council are not doing enough to ensure the money continues to come to the city. So, the students are good enough to fund the growth of your city, but not good enough to live here...?
I do not support the fee rise, however, any negative feeling is directed to the government for forcing universities to make such decisions!
I sense that the residents of Plymouth people will not be happy either way...”
by Tim, Plymouth
Thursday, May 05 2011, 9:15AM
“I doubt it will have a huge effect as potential students in the south west don't have many options. It's either Plymouth or Exeter.
That said the new system is ridiculous.”
by David, Derriford
Thursday, May 05 2011, 9:02AM
“Maybe all the property tycoons busily converting houses for student let should stop and think for a while!”