As London enters a new chapter with the launch of the London Growth Plan, the city’s higher education sector can be optimistic about the future. Financial pressures, shifting government policies and evolving student needs present challenges but also an opportunity to shape a transforming sector, country and world.
The growth plan will stimulate economic growth, improve quality of life and cement London’s reputation as a global innovation hub. But universities and higher education institutions are vital to making this vision a reality. Having long been engines of innovation as well as providers of key skills, their resilience and adaptability will be essential as London navigates rapid economic, environmental, and societal change.
The capital’s economy is strong and expanding, yet still falls short of reaching its full potential. The London Growth Plan prioritises investment in high-growth sectors such as life sciences, AI, quantum computing and the green economy.
However, long-term success depends on much more than financial backing – it also requires a highly skilled workforce and a seamless link between education and industry. Universities are best placed to deliver this, providing the expertise, research and talent pipeline needed to keep London at the cutting edge.
The plan rightly underscores the need for a skilled workforce. In a fast-evolving economy, employability and innovation must go hand in hand. As the government advances its Get Britain Working agenda, London’s higher education institutions can help design and implement solutions, leveraging their expertise in widening participation and upskilling underserved communities.
For decades, London’s universities have worked with partners to break down barriers to employment and are uniquely positioned to support this national priority. They already make a huge economic impact beyond teaching degree courses, from lifelong learning and professional training to research partnerships and start-up incubation.
Take City St George’s, University of London’s collaboration with Tech City UK, which connects students with fast-growing digital businesses, ensuring that education aligns with industry needs. Another prime example is the University of East London’s investment in entrepreneurial education, which has propelled it from 97th to 4th in the UK for student start-ups.
Since 2018, UEL has both incubated and accelerated hundreds of new student- and graduate-led ventures, demonstrating that targeted university-led initiatives can directly fuel London’s innovation economy.
With the right investment and coordination, London’s higher education sector can continue to drive workforce development in vital growth industries and position London as a world leader in innovation.
London’s universities offer immense value to businesses – from specialist research to next-generation technologies – but external partners often find them difficult to access. The London Growth Plan provides a framework for improving collaboration, encouraging streamlined business partnerships, university-led innovation hubs, and expanded SME engagement.
A model example is London South Bank University’s Help to Grow programme, which supports over 200 SMEs across the capital, helping them scale through tailored growth strategies. Such initiatives demonstrate the tangible economic contributions of universities and their potential to turbocharge London’s business landscape.
In November, education secretary Bridget Phillipson outlined reforms expected from England’s higher education institutions before guaranteeing any future funding boost, including expanding access to higher education, fostering regional collaboration, and increasing efficiency.
Her focus on widening participation aligns with the London Growth Plan’s goal of inclusive development. London already leads in this area – a recent report by London Higher’s AccessHE division found that the proportion of free school meals-eligible pupils progressing to higher education is set to reach 60 per cent within a decade.
However, disparities persist across boroughs, underscoring the need for targeted interventions to ensure economic growth benefits all communities, not just the wealthiest. London’s universities have the expertise, resources and networks to help turn the London Growth Plan into a reality, but they cannot do it alone.
To drive innovation, boost productivity, and secure a diverse, highly skilled workforce, businesses must actively engage with universities, whether through joint research projects, industry-led training programmes or investment in university innovation hubs.
For their part, London’s higher education institutions must take steps to make their expertise more accessible. London’s future prosperity depends on breaking down barriers between academia and industry, scaling industry collaborations, expanding funding for high-impact initiatives that drive economic and social mobility, and a skills pipeline tailored to business needs.
Now is the time to for bold, coordinated action. London’s universities can help create a thriving, inclusive, and sustainable future, not just for the capital, but for the entire country.
Amanda J. Broderick is Vice Chancellor and President of the University of East London and Chair of London Higher. Diana Beech is London Higher’s CEO. Photo: City St Georges, University of London.
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