London higher education contributes £60.9 billion a year, report says

London Higher’s new report puts the capital’s university sector at nearly 550,000 students and more than 140 institutions, while warning that global leadership cannot be assumed.

From left: Lord Kulveer Ranger, Professor Geraint Rees, Howard Dawber OBE, Liz Hutchinson, Sakina Sule Ali and Professor Shitij Kapur at the launch of London: The Higher Education Capital of the World at UCL

London’s higher education sector contributes £60.9 billion a year to the UK economy, according to a new London Higher report launched at UCL on July 14.

London: The Higher Education Capital of the World brings together data and case studies covering universities, research centers, specialist institutions and industry partnerships across the capital.

The report says London is home to nearly 550,000 students, more than 140 higher education institutions and two of the world’s top 10 universities. UCL is ranked joint eighth in the latest QS World University Rankings cited in the report.

London Higher launched the publication at UCL’s Wilkins Building as part of a campaign promoting the contribution of the capital’s higher education sector to research, innovation, employment and economic growth across the UK.

The event brought together university, government and industry representatives, including Howard Dawber OBE, Deputy Mayor of London for Business and Growth; Professor Shitij Kapur, Chair of London Higher and Vice-Chancellor and President of King’s College London; and Professor Geraint Rees, UCL Vice-Provost for Research, Innovation and Global Engagement.

Report warns London’s position is not guaranteed

London Higher argues that the concentration of universities, specialist institutions and research organizations in the capital gives London a scale that is not matched by other cities.

Kapur describes the sector as an asset for the wider UK economy and its international position: “London's higher education sector is one of the UK's greatest strategic assets. The strength of our higher education sector helps ensure the UK remains competitive, connected and influential on the world stage.”

He also warns that continued investment will be required as other global cities increase spending on universities and innovation.

“But global leadership is never permanent. Cities around the world are investing heavily in higher education and innovation. If the UK wants to remain internationally competitive, we must continue to nurture the conditions that allow London's universities and research institutions to thrive.”

The report includes a foreword from Mayor of London Sir Sadiq Khan.

Dawber addressed the role of universities in attracting investment and supporting innovation and growth, while Lord Kulveer Ranger, Chair of the All-Party Parliamentary Group for London, discussed the place of higher education in the capital’s future.

UCL research features in technology and health case studies

The report uses UCL projects and partnerships to illustrate London’s work in artificial intelligence, quantum technologies, health research and clean energy.

One case study covers Google DeepMind, which was co-founded by UCL PhD students Demis Hassabis, Shane Legg and Mustafa Suleyman. DeepMind developed AlphaFold, an AI system for predicting protein structures, with Demis Hassabis later sharing the 2024 Nobel Prize in Chemistry.

The publication also features the Mayor of London-backed London Quantum Cluster, which connects UCL, King’s College London and Imperial College London to support quantum research, innovation and commercialization.

In health research, the report includes work at UCL’s Huntington’s Disease Centre, where researchers developed a treatment shown to slow the progression of Huntington’s disease by 75 percent.

UCL’s Bartlett School of Environment, Energy and Resources is cited for its work on clean energy, while UCL’s participation in the London Anchor Institutions Network links the university to procurement, pay and apprenticeship activity across the capital.

Members of the Greater London Authority-led network have collectively secured £1.75 billion in contracts for small and medium-sized enterprises, supported more than 7,200 London Living Wage increases and created more than 4,000 apprenticeships, according to the report.

Knowledge Quarter supports 59,500 jobs

London Higher also examines the concentration of research and innovation organizations around King’s Cross, Euston and Bloomsbury.

UCL is a founding partner of the Knowledge Quarter, which brings together universities, companies, cultural organizations and research institutions. The report says the district supports about 59,500 jobs across 176 companies and eight universities.

Professor Alan Thompson, UCL Pro-Provost London, was recently appointed Chair of the Knowledge Quarter Board.

Rees links the report to UCL’s bicentennial year and its international student and research networks. “It is particularly special to welcome colleagues from across London's higher education community to UCL during our bicentennial year,” he says.

“For 200 years, we have been welcoming students to this unique location, founded on the belief that higher education should be open to people from all backgrounds.

“Today, our student and alumni communities represent more than 150 countries and our global partnerships reach around the globe.

“This publication highlights not only the excellence of London's universities but the power of the ecosystem that connects education, research, innovation and industry across the capital and the world.”