Rising uni fees could hurt city businesses (From Worcester News)

Rising uni fees could hurt city businesses

12:20pm Thursday 5th May 2011 in News By David Paine, @davidpaineWN #worcsnews

WORCESTER’S economy could be hit hard by Government plans to increase tuition fees, according to some city businesses.

Student spending accounts for up to 10 per cent of the total economic activity of some cities, according to a report by the independent research institute Centre for Cities.

The University of Worcester, taking everything into account, contributes about £200 million to the region’s economy.

But this could change if students become more selective about where they study – or decide not to go to university at all because of rising costs, the report says.

We have previously reported how students will pay up to £8,100 a year to study at the University of Worcester from 2012 – significantly higher than the existing charge of £3,375 and just below the maximum £9,000 fee institutions are allowed to charge.

The university’s foundation degrees, usually two years long and run in partnership with further education colleges, will increase from £3,375 to £6,000.

The new fees structure means the average fee paid by students at the university will be £7,643 per year – which the university says is still good value for money.

The university is the fastest growing in Britain with applications more than tripling over the past seven years.

Sheikh Latif, owner of Shakeey’s restaurant in Angel Street, said he had already noticed students spending less. “The economy in Worcester is reliant on students now,” he said.

“If student fees go up it will definitely affect the local community and local economy. It’s a difficult time, a hard time, and too difficult to survive at the moment with the way things are.”

Richard Harper, who owns Dream Letting, which provides rented rooms to students in the St John’s area of Worcester, said: “A lot of my students come from places like Birmingham or Hereford, so I think it will have an impact because they will probably either commute or stay in their own home towns and cities and go to university there.

“It’s the same for everybody, though, and it’s just a game we’ve got to play but with Worcester expanding that adds some bonus and will potentially bring more people in.”

Darren Pinches, owner of Bushwackers in Trinity Street, said: “I do believe the tuition fee rises are going to have an impact and make students think twice before going to university, but not for a couple of years as a lot are already on courses or have already decided what they are doing.

“It will possibly make a bit of a difference but we have still got quite a young community in Worcester.”

Centre for Cities analyst Paul Swinney said: “In this age of austerity, universities have needed to revise their fee structures, but it is important that cities understand that decisions made by universities about fees, students and staff will have implications for local economies.”