College helps boost economy by £115m

May 9 2008 by David Holmes, Chester Chronicle

WEST Cheshire College injects more than £115m into the local economy every year, according to new research.

EMSI, an international leader in economic modelling, found the Cheshire economy benefits to the tune of £117.1 million in added income from its annual operations and the effects of its past and present learners.

Economists assume a 4% rate of return on government investments, but when EMSI looked at West Cheshire College, which has campuses in Chester and Ellesmere Port, the rate of return was an impressive 17%.

The outcomes of the report break down the impact West Cheshire College has on learners, businesses, taxpayers and society in general.

According to the findings, learners gain an increase in their annual income of £931 per qualification gained.

Businesses benefit from £21.5m of college annual spending on local services and supplies.

Taxpayers gain from an increase of £2.7m in added tax revenue every year

And society benefits to the tune of £13.6m from the extra annual income added to the UK economy

Due to improved health and lower crime rates among educated people, there is a reduction of £699,000 in social costs every year.

Principal, Sara Mogel, said: “Further Education Colleges make a tremendous contribution to society and its economy. At West Cheshire College we recognised this, but even we have been amazed at the size of our own contribution. We won’t be resting on our laurels, but will continue to work hard to make West Cheshire a stronger economy and society.”

Dr Kjell Christophersen, President of EMSI said: “West Cheshire College is one of the first 40 colleges in the UK to participate in this research. The results show that the college generates a strong financial return to government, learners and the local community.”