9
The economic impact of City of Glasgow College, December 2020 - Fraser of Allander Institute
Results
For the period 2011/12-2018/19 we estimate that:
■ The Scottish economy (as measured by GDP) has been boosted by over £6 billion in present
value terms4 (i.e. with future benefits discounted) over the long-term.
■ This corresponds to around an additional £56,000 boost per graduate.
■ The present value5 of the increase in public sector revenues is estimated to be £2
billion compared to a present value of the total costs of investing in these learners of
approximately £440 million6. In present value terms, the net (positive) impact on the public
sector budget is therefore around £1.6 billion.
■ In the long-run, the boost to the economy helps to create an additional 3,900 'FTE job
years'.
4 To convert prices to present value terms, prices are discounted using a standard discount rate of 3.5%. This allows prices in
different years to be compared on a like-for-like basis.
5 The value of a sum of money in the present, discounted against the future value it will have.
6 This includes the primary sources of Scottish Government funding to the City of Glasgow College - the Scottish Funding Council
Grant (£364m undiscounted) and roughly 80% of Higher Education Tuition Fees (£54m undiscounted). The unadjusted cost is £418
million.