牛津經(jīng)濟(jì)研究院-獨立學(xué)校對英國經(jīng)濟(jì)的影響（英）-2022.12-60正式版

THEIMPACTOFINDEPENDENTSCHOOLSONTHEUKECONOMYDECEMBER2022TheimpactofindependentschoolsontheUKeconomyTABLEOFCONTENTSForeword2Executivesummary41.Introduction81.1IntroductiontotheISCandtheUKindependentschoolssector81.2Scopeofthestudy101.3Introductiontoeconomicimpactassessment101.4Additionaleconomicandsocialbenefitsofindependentschools121.5Structureofthereport132.TheeconomicfootprintofISCandallindependentschools142.1Theeconomicfootprint:keyfindings142.2Theschools’income,costs,anddirectGVA162.3Directemployment172.4Directtaximpacts182.5Thepatternofprocurementandindirecteconomicimpacts192.6Inducedeconomicimpacts212.7Totaleconomicfootprintindetail213.Savingstothetaxpayer243.1Savingstothetaxpayer:keyfindings243.2IndependentschoolpupilsentitledtoaUKstateschoolplace253.3Recurrentspendingperpupilbystate-fundedschoolsandtrusts263.4Taxpayersavingsduetorecurrentschoolspending263.5Taxpayersavingsduetocapitaloutlays283.6Potentialadditionaltaxpayersavings4.TheimpactofCovid-19andBrexit324.1TheimpactofCovid-19andBrexit:keyfindings324.2QuantifyingGVAshortfallsinactivityin2021334.3PossibledriversoftheGVAshortfalls354.4Shortfallsintheschools’employmentimpactsin202137Appendix1:Mainresultstables38Appendix2:RegionaldistributionoftheISCeconomicfootprint44Appendix3:ImpactofboardingatISCschools47Appendix4:Impactofnon-BritishpupilsatISCschools48Appendix5:Methodology50DECEMBER20221TheimpactofindependentschoolsontheUKeconomyFOREWORDIndependentschoolsareentwinedinthefabricoftheirlocaleconomies.Eachschool—largeorsmall—willbeconnectedtoitslocalcommunityinamyriadofwayswhetherbyemployingteachers,ITtechniciansorcaterersorworkingwithbusinessestoprocuregoodsandservices.Andimportantlyschoolswillbepayingtaxestosupportwidersociety.Thisreportprovidesnationalleveldatatoquantifytheeconomiccontributionofindependentschools—boththeirdirectactivitiesandtherippleeffectsthishasthroughsupplychains.Thesenumbersaresubstantial,andallthemainindicatorshaveincreasedsinceourlastreportin2018.Togetherindependentschoolscontribute￡16.5billiontotheUKeconomy,supporting328,000jobsand￡5.1billionintaxrevenues.Andthesector2

savesthegovernment￡4.4billioneveryyearbyeducatingpupilswhowouldotherwisetakeupaplaceinstate-fundedschools.Independentschoolsalsoattractinternationalstudentswhoculturallyenrichtheirschoolcommunities,withmanygoingontostudyatUKuniversitieshavingimmersedthemselvesinoureducationsystem.Thisreportdetailsthe￡2.1billionimpactthesestudentsandtheirfamilieshaveonoureconomy.AsourcountryemergesfromtheeconomicshadowofCovid-19nowmorethaneveristhetimetosafeguardtheeconomicbenefitsindependentschoolsprovidebothnationallyandlocally.Weknowmanylocaleconomieswouldbeworseoffshouldtheirindependentschoolsdisappear.TheimpactofindependentschoolsontheUKeconomyThereisno‘typical’independentschool.Thereisadiversityinthesectorthatbeliesthepopularstereotype.ISCschoolsvarysignificantlyinsizefromhavingfewerthan50pupilstonearly2,500,althoughhalfofallschoolshavefewerthan300pupils.ThesectoralsooffersavarietyofspecialismsinSEND,single-sexeducation,boarding,musicanddance.Alltheseschoolscontributeeconomically,whileacrossthesectorschoolsworkhardtoprovidepublicbenefitbybuildingpartnershipswiththeirstatecolleaguesandtowidenaccessthroughproviding￡480millionworthofbursariesandmeanstestedfeeassistance.

Alongsidethisreport,OxfordEconomicshasalsoprovidedaneconomicimpacttool—anonlineresourcewhichindividualschoolscanusetocalculatetheirownlocaleconomiccontributionandweurgeschoolsreadingthisreporttouseit(viatheISCwebsite).Finally,IwouldliketothankOxfordEconomicsfortheirworkinputtingthisreporttogetherandprovidingsuchaclearpictureoftheeconomicvalueindependentschoolsdeliver.BarnabyLenon,ChairmanIndependentSchoolsCouncil3TheimpactofindependentschoolsontheUKeconomyEXECUTIVESUMMARY￡14.1bnISCschools’contributiontoUKproduction(GVA)in2021,takingtheknock-onimpactofspendingongoods,services,andsalariesintoaccount.Thissupported281,980jobs,and￡4.3billionintaxes.

IndependentschoolsintheUnitedKingdommakeasignificantcontributiontonationalandlocaleconomies,aswellasthecommunitiestheyserve.In2021,accordingtoindependenteconomicanalysisassetoutinthisreport:SchoolsaffiliatedtotheIndependentSchoolsCouncil(ISC)madea￡14.1billioncontributiontotheUKeconomy.Thatisequivalentto0.7%oftotalUKGDPinthatyear,andtothetotaleconomicactivitygeneratedinacitythesizeofSheffield.TheactivitiesofISCschoolsalsohaveasignificantimpactonUKemployment.In2021,theysupportedaround282,000jobsacrossthecountry,equivalenttothetotalemployedpopulationinacitythesizeofLiverpool.ISCschoolsalsosupported￡4.3billionintaxrevenuesfortheUKexchequer.Thatissufficienttofundthesalariesof115,000full-timenurses.ScalingtheresultsuptoallindependentschoolsacrosstheUK,weestimatetheirtotaleconomicfootprinttohavebeen￡16.5billion,associatedwithover328,000jobs,and￡5.1billionintaxrevenues.Thestudyalsofoundthatindependentschoolssavethetaxpayer￡4.4billioneveryyearbyprovidingplacesforpupilswhocouldotherwisebeexpectedtotakeupaplaceinthestate-fundedsector.TheISCschools’shareofthattotalis￡3.8billion.ThisstudyinvestigatedtheimpactoftheschoolsaffiliatedtotheISC1,andthatoftheindependentschools’sectormorewidely,ontheUKeconomyin2021.Itconsiderstheeconomicactivitytakingplaceintheschools,andtheactivitysupportedrightacrosstheeconomybytheschools’spendingongoods,services,capitalprojects,andsalaries.ItalsoconsiderstheeffectofCovid-19andBrexitontheISCschools’economicimpactin2021.ECONOMICFOOTPRINTThe￡14.1billiontotalcontributiontothe“grossvalueadded”measureofUKproduction(GVA)ismadeupofthreeelements.2ThedirectGVAimpactis￡6.9billionandisprimarilythecostsofemployingteachingandsupportstafftocarryouttheday-to-dayworkoftheschool.Inthisreporttheterm“ISCschools”isusedasshorthandfor“ISCmemberassociationschools”.Schoolsarenotdirectmembers4ofISC.Rather,therequirementsforbeingconsideredan“ISCschool”arethattheschoolhastheabilitytochargefees,andthatitsheadisamemberofoneofISC’sconstituentassociations(seeChapter1).GVAisthestandardmeasureofeconomicproductionforabusiness,industry,orsector,and(asexplainedinChapter1)isasimilarconcepttogrossdomesticproduct(GDP).TheimpactofindependentschoolsontheUKeconomyButtheschools’impactontheUKeconomydoesnotendthere.Theypurchasegoodsandservicesfromthirdparties,oftenintheirlocalarea,includingconstructioncompanies,ITsupportserviceproviders,schoolequipmentsuppliers,contractcateringfirms,andself-employedmusicandsportsinstructors,amongstmanyothers.ThisgeneratesGVAforthosebusinesses,andfortheirsuppliersinturn,andthisso-called“indirectGVAimpact”isestimatedat￡1.8billionin2021.Furthermore,theschools’teachersandsupportstaff,andworkersintheirsupplychain,willspendtheirtake-homepayinshops,restaurants,andleisureoutlets,andonutilitiesandhouseholdservices,supportingfurtherproductionintheUKconsumereconomy.Thisso-called“inducedGVAimpact”isestimatedtohavecontributedafurther￡5.5billiontothetotaleconomicfootprintin2021.Altogether,thismeansthat,forevery￡100millionofGVAgenerateddirectlybyISCschools,anextra￡105millionissupportedbysupplychainlinksandsalary-fundedexpenditure.AsthetotalGVAimpactis,therefore,justovertwicethedirectGVAimpactalone,theGVAmultiplierisjustovertwo.The281,980jobssupportedbyISCschoolsacrossthecountryinclude:???

152,290teachersandsupportstaffdirectlyemployedbytheschoolsthemselves;33,550indirectjobsinthesupplychain,supportedbytheirprocurementofgoodsandservicesfromthirdpartybusinesses;and96,140inducedjobssupportedintheUKconsumereconomy,bythesalary-fundedspendingofschoolandsupplychainstaff.The￡4.3billionintaxrevenuesfortheUKexchequerwasmadeupof:???

Some￡2.0billionindirecttaxes,paidbyISCschoolsthemselves,andbytheirstaffontheirsalaries;Another￡0.4billionofindirecttaxationcollectedalongtheschools’supplychain;and￡1.9billionofinducedtaxationgeneratedbythesalary-fundedspendingofemployees.5TheimpactofindependentschoolsontheUKeconomy￡4.4bnAnnualsavingstotheUKtaxpayerasaresultofpupilsattendinganindependentschool,insteadoftakingupafreeUKstateschoolplace.TheISCschools’shareofthattotalis￡3.8billion.10%Shortfallineconomicoutputin2021duetotheimpactofCovid-19onschoolactivityandparents’finances.

SAVINGSFORTHETAXPAYERIfindependentschoolpupilstookupthestateschoolplacestowhichtheywereentitledinstead,thentheBritishtaxpayerwouldhavetobearsignificantextracosts.WeestimatethatindependentschoolssavetheBritishtaxpayeratleast￡4.4billionannually.TheshareofISCschoolsinthissavingis￡3.8billionperyear.ThiscalculationconsidersteachingandotherrecurrentcostsintheUKstateschoolsector,pluscapitalcostsassociatedwiththeuseofland,constructionofschoolbuildings,andpropertymaintenance.Butitexcludescentraladministrativecosts,andisthereforelikelytoslightlyunderstatethefullamountofthesaving.THEIMPACTOFCOVID-19ANDBREXITTheGVAandemploymentimpactsofISCschoolsin2021fellshortofthelevelsthatwouldhaveprevailedhadthepre-2020“trend”growthratescontinued,byanestimated10%and8%respectively.Thiswasprimarilydrivenbyan8%shortfallinaveragefeesperpupil,estimatedonthesamebasis.ThisinturnwasdirectlyassociatedwithCovid-19-relatedfeediscounts,allowingustoconcludethatCovid-19wasthedominantcauseoftheGVAandemployment“l(fā)osses”.Bycontrast,recenttrendsinpupilnumbersbynationalitydonotprovideanyconclusiveevidenceofashort-term“Brexiteffect”.However,itdoesnotnecessarilyfollowthattherewillbenosignificantimpactinthelong-term—if,forexample,changesinvisaarrangementsresultedinEUpupilnumbersgrowingataslowerpacethanotherwise.ABOUTTHEISCTheIndependentSchoolsCouncil(ISC)bringstogethersevenassociationsofindependentschools,theirheads,bursars,andgovernors.Inearly2022,theISCrepresentednearly1,400independentschoolsintheUK.Theseschoolseducatedmorethanhalfamillionchildren,equivalentto86%ofpupilsatallUKindependentschools.Independentschoolsinturnaccountfor6%ofthecountry’sentireschoolpopulation.6THEIMPACTOFINDEPENDENTSCHOOLSONTHEUKECONOMYAllindependentschoolsISCschools2,559￡16.5bnschools￡14.1bn1,371Demand-sideschoolssupportforGVA*￡2.1bn￡4.4bn328,050￡5.1bnGVA￡3.8bnWidercontribution281,980￡4.3bnsupportedbyAnnualtotheeconomy,Annualnon-Britishsociety,andstate-Jobssavingstotaxpupilstaxpayerfundededucationrevenues*GVA=GrossValueAddedTHEECONOMICIMPACTOFISCSCHOOLS￡14.1BILLIONcontributiontoGVA(GrossValueAdded).Equivalentto0.7%oftotalUKGVA,andGVAproducedinacitythesizeofSheffield.281,980JOBSSimilartoemploymentacrossacitythesizeofLiverpool.

￡3.8BILLIONannualsavingstothetaxpayer,enoughtopay460,000statepensions.￡4.3BILLIONannualtaxrevenues,equivalentto￡154perhousehold.Thiscouldfundtheannualpayof115,000nurses.TheimpactofindependentschoolsontheUKeconomy1.INTRODUCTIONThisreport,preparedbyOxfordEconomicsandcommissionedbytheIndependentSchoolsCouncil(ISC),examinesthecontributionthatISCschools,andthewiderindependentschoolssector,madetotheUKeconomyin2021.Itupdatestheresultsofpreviousstudiespublishedin2014and2018.3Asinthepreviousstudy,twosetsofbenefitsforthewidereconomyareexamined:

Thesector’scontributiontonationaleconomicproduction(GVA),jobs,andtaxrevenues,duetotheactivitytakingplaceinthesectoritself,activityinthesupplychainstimulatedbytheschools’purchasesofgoodsandservices,andactivityinthewidereconomysupportedbythesalary-fundedspendingofschoolandsupplychainstaff.

SavingsfortheBritishtaxpayer,becausemostpupilsatindependentschoolsareentitledto,butdonottakeup,aplaceatastate-fundedschool.Inaddition,thestudyexaminestheextenttowhichtheestimatesforthelatestyear—calendaryear2021—mighthavebeenaffectedbyCovid-19andBrexit.1.1INTRODUCTIONTOTHEISCANDTHEUKINDEPENDENTSCHOOLSSECTORThemainfocusofthisreportisonthecontributiontotheUKeconomyofindependentschoolsthataremembersofISCassociations.TheISCcomprisessevenconstituent

associationsofindependentschools,theirheads,bursars,andgovernors.4AsofJanuary2022,independentschoolsaccountedfor5.8%ofallschoolpupilsintheUK,and

thoseinmembershipoftheISC,for5.0%(seeFig.1).ISCassociationschoolsthereforeaccountfor86%ofallpupilsatUKindependentschools.Fig.1:DistributionofschoolpupilsintheUKinJanuary2022EnglandScotlandWalesNorthernTotalUK%ofIrelandtotalISCindependentschools498,73425,4517,432374531,9915.0%Otherindependentschools82,6933,5812,42334289,0390.8%Totalindependentschools581,42729,0329,855716621,0305.8%State-fundedschools8,414,639796,326474,724348,49110,034,18094.1%Overalltotal19,000,031825,358484,579349,20710,659,175100.0%Source:IndependentSchoolsCouncil;DepartmentforEducation;ScottishIndependentSchoolsCouncil;gov.scot;StatsWales;DepartmentofEducation(NorthernIreland).TheEnglandtotalalsoincludes3,965pupilsatnon-maintainedspecialschools.Intotal,1,388schoolsaremembersofISCassociations,asofearly2022,witharound544,000pupilsenrolled(seeFig.2).Ofthese,1,371areindependentschoolslocatedintheUK,educating532,000

pupils.TheotherISCmemberscomprisesevenstate-fundedvoluntarygrammarschoolsinNorthernIreland,and10independentschoolsintheChannelIslandsandIsleofMan.Thetotalnumberof

independentschoolsintheUKis2,559,educatingsome621,000pupils.OxfordEconomics,TheimpactofindependentschoolsontheBritisheconomy,April2014,andOxfordEconomics,Theimpactof8independentschoolsontheUKeconomy,October2018.ISC’sconstituentassociationsare:theAssociationofGoverningBodiesofIndependentSchools(AGBIS),theGirls’SchoolsAssociation(GSA),HMC(theHeads’Conference),theIndependentAssociationofPrepSchools(IAPS),theIndependentSchoolsAssociation(ISA),theIndependentSchools’BursarsAssociation(ISBA),andtheSocietyofHeads(SofH).FourassociationsareaffiliatemembersofISC:theCouncilofBritishInternationalSchools(COBIS),theBoardingSchools’Association(BSA),theScottishCouncilofIndependentSchools(SCIS),andtheWelshIndependentSchoolsCouncil(WISC).TheimpactofindependentschoolsontheUKeconomyFig.2:SchoolsinmembershipofassociationsaffiliatedtotheISCNumberofschoolsNumberofpupilsEngland1,315498,734Scotland3425,451Wales197,432NorthernIreland(independentschools)3374TotalindependentschoolsintheUK1,371531,991NorthernIreland(state-fundedgrammarschools)77,638ChannelIslandsandIsleofMan104,687Overalltotal1,388544,316Source:IndependentSchoolsCouncil.TheISCschooldataareconsistentwiththeISCcensusandannualreport2022,andreflectthepositioninJanuary2022.TherearemanytypesofschoolsinISCmembership,andtheyarespreadacrossthecountry(seeAppendix2).Boardingschoolpupilsaccountfor12%ofallISCschoolpupils,andgirlsfor49%ofpupils.Theschoolscaterforchildrenandteenagers,frompre-primaryschoolageupto19yearsold.Some75%oftheschools(1,039ofthe1,388)operateonanot-for-profitbasis.Theschoolsvaryinsize,withnearlyaquarterhavingfewerthan150pupils,andjustoveraquarterhavingmorethan500(seeFig.3).Theaverage(mean)numberofpupilsperschoolis392.Themedianisjustunder300,asjustoverhalfoftheschoolshave300pupilsorfewer.

Fig.3:ISCschoolsbysizebandintermsofpupilnumbersNumberofschoolsbypupilsizeband911707%12%1-100101-150284167151-20020%12%Total201-2501,388251-300schools138301-40010510%8%401-500128501-10001909%1001+14%1158%Source:IndependentSchoolsCouncil;OxfordEconomics9TheimpactofindependentschoolsontheUKeconomy1.2SCOPEOFTHESTUDYThisstudycoverstheimpactofthe1,371independentISC-affiliatedschoolslocatedintheUK.5Theanalysislooksatthesector’seconomicfootprintacrossthecountry(explainedinSection1.3below),aswellasthesavingsmadebythetaxpayerasaresultoftheschools’existence,andthepossibleimpactofCovid-19andBrexitonthelatestestimatesofthesector’ssizeandimpact.

Fortheeconomicfootprintandtaxpayersavingsanalysis,thestartingpointisincome-per-pupilandcost-per-pupildatafortheacademicyearendingAugust2021.ThesedataarethenscaledtothenumberofISCpupilsinJanuary2022.Theresultsthereforegiveanindicationofthesector’simpactinthecalendaryear2021.

Theestimatesareconstructedtotakeintoaccountdifferencesbetweentypeofschool(e.g.primary,secondary,orspecial),betweenregions,and(forthetaxpayersavingsanalysis)betweenparents’nationalityandcountryofresidence.Estimatesfortheimpactofallindependentschoolsarealsogiven,althoughtheseareextrapolationsbasedontheratioofpupilnumbersonaregion-by-regionbasis.1.3INTRODUCTIONTOECONOMICIMPACTASSESSMENTThe“economicfootprint”analysislooksbeyondtheheadline“sizeofthesector”metricstoquantifythewidercontributionthatISCschoolsmaketotheUKeconomy.Thisusesastandardeconomicimpactassessmentframework,whichquantifiesthisfootprintacrossthreechannels:Directimpact—theeconomicactivityundertakenbytheschoolsthemselves.

Indirect(supplychain)impact—theactivitysupportedthroughouttheUKsupplychain,asaresultoftheschools’procurementofgoodsandservicesfromthird-partysuppliers.Thistakesintoaccounttheimpactofspendingrelatingtotheday-to-dayrunningoftheschools,includingspendingonsupplyteachersandoutsourcedcatering,aswellastheimpactofcapitalspendingonconstructionwork,andcomputersandotherequipment.

Induced(salary-fundedexpenditure)impact—thewidereconomicbenefitsthatarisewhentheschoolstaff,andworkersintheirsupplychain,spendtheirearnings,forexampleinretailandleisureestablishments.Thewaythatthedirect,indirect,andinducedchannelsrelatetoeachotherisillustratedinFig.4.TheschoolsintheChannelIslandsandIsleofMan,andthestate-fundedgrammarschoolsinNorthernIreland,aretherefore10excludedfromtheanalysis.TheimpactofindependentschoolsontheUKeconomyFig.4:ChannelsofeconomicimpactDIRECTIMPACTINDIRECTIMPACTINDUCEDIMPACTTOTALIMPACT

Theindependentschoolssectoremploysstaff,generatesGDP,andpaystaxes.Italsospendsmoneywithsuppliers,whoemploystaff,generateGDP,paytaxes,anduseothersuppliersinturn.Theschoolandsupplieremployeesspendwagesinthewidereconomy,generatingmoreGDP,jobsandtaxes.Addedtogether,thesethreeeffects(direct,indirectandinduced)formthetotaleconomicfootprintoftheindependentschoolssector.Theeconomicfootprintofthesectorisquantifiedusingthreemetrics.Theseare:Thegrossvalueaddedmeasureofeconomicproduction(GVA).6InthecaseofdirectGVA,thisisthevalueoftheeducation,accommodation,catering,andwelfareservicesthattheschoolsprovidetotheirpupils,minusthevalueofday-to-day(non-capital)goodsandservicespurchasedfromthirdparties.Thisisbroadlyequivalenttothesector’semploymentcosts,plusthe

grosssurplusmadeonitsoperatingactivities,whichismainlyusedtocoverthecostofpastcapitalspending.Employment,measuredonaheadcountbasis,tofacilitatecomparisonwithemploymentdataforotherindustries.Thisincludesself-employedaswellasemployeejobsintheindirectandinducedchannels.Taxrevenues,encompassingalltaxesonsalaries,profits,businessactivity,andbusinesssupplies,and(in

theinducedchannel)thoseonemployeespending.Thecalculationsareundertakenonagrossbasis.Thismeanstheydonottakeaccountoftheeconomicactivitydisplacedfromothersectors.Nordotheyattempttoquantifytheproductivenessofdeployingtheresourcesconcernedintheindependentschoolssector,andinitssupplychain,relativetoalternativepotentialuses.Thisisastandardapproachforundertakingeconomicimpactappraisal.GVAisasimilarconcepttogrossdomesticproduct(GDP),exceptthattheformerisvaluedatthe“basicprices”receivedby11suppliers,netofsalestaxessuchasVATandexciseduties,whilethelatterisvaluedatthe“marketprices”paidbythepurchaser,includingthosetaxes.GDPisthemeasuretypicallyusedfornationaleconomicproduction,butGVAisusuallyusedinrelationtothecontributionofanindividualbusiness,industry,orsector.TheimpactofindependentschoolsontheUKeconomy1.4ADDITIONALECONOMICANDSOCIALBENEFITSOFINDEPENDENTSCHOOLSItisimportanttonotethatthebenefitsofindependentschoolstotheUKeconomyandsocietyarebynomeans

confinedtotheeconomic quantifiable,includingsomefootprint.Theboxbelow beyondthescopeofthisstudy.summarisesarangeofotherbenefits,quantifiableandnon-Contributiontothepublicsectorandwidercommunity:Savingstothetaxpayer,duetopupilseligibleforafreeUKstateschoolplaceattendinganindependentschoolinstead.Thesesavingsareadditionaltothetaxrevenuesgeneratedbytheindependentschools’activities,capturedintheeconomicfootprintinChapter2ofthisreport,andarequantifiedinChapter3.Contributionstothelocalcommunitythroughpartnershipswithstateschools.Thiscanincludesharingclassrooms,sharingIT,sportsandcateringfacilities,secondingteachingstaff,andsponsoringstateacademies.Anillustrationofthescaleandbreadthofthesepartnershipswasincludedinthepreviousreportpublishedin2018.Means-testeddiscountsonschoolfees.AsofJanuary2022,8.5%ofISCschoolpupilsbenefitedfrommeans-testedfeediscounts.Thesediscountsarevaluedat￡480millionperannum,andnowaccountfor50%ofthevalueofallfeediscountsfundedbytheschools.Contributiontolong-termeconomicgrowthandlivingstandards:Theschools’strongfocusonscientificsubjects,whichareinhighdemandamongstgraduateemployers.ThiswillsupporttheUK’sfutureproductivityperformance,andbenefitUKandgloballivingstandards,byeducatingpioneersinthescientific,engineering,andmedical

fields,tofollowinthefootstepsofAlanTuring,TimBerners-Lee,RosalindFranklin,FrancisCrick,andthemanyotherseducatedatUKindependentschoolsinthepast.ContributionofinternationalpupilsatBritishindependentschools:Spendingbyinternationalschoolpupilsoutsideoftheschools,andspendingbyfriendsandrelativesvisitingtheUKfromtheirhomecountries.Thisaddstodemandinthelocaleconomiesaroundtheschools.Theimpactisadditionaltotheschools’ownfootprint,whichisthesubjectofChapter2,andisestimatedaspartoftheanalysisinAppendix4.ContinuededucationatUKuniversities.UKuniversities,andtheirlocaleconomies,willbenefitwhenoverseaspupilschoosetomoveontohighereducationintheUK.ContributiontotheUK’ssoftpoweroverseas,byenhancinglinkswithothercountries.ContributionofBritishschoolslocatedoverseas:GenerationofadditionalfundsfortheUK.TheISCestimatesthattherearesome6,000UK-orientatedschoolsoverseas,inmanycasespayingsalariestoBritishstaff,purchasingUK-sourcedgoodsandservices,and/orgeneratingsurplusestoberepatriatedtotheUK.ProvisionofexperiencetoteacherswhosubsequentlyworkintheUK.12TheimpactofindependentschoolsontheUKeconomy1.5STRUCTUREOFTHEREPORTTheremainderofthisreportisstructuredasfollows:Chapter2setsouttheeconomicfootprintofISCschools,andthatofthewiderindependentschoolssector,intheUKin2021.Chapter3describesthevalueofthesavingsmadebytheUKtaxpayerinthatyear,asaresultofschoolpupilseligibleforafreeUKstateschoolplaceattendinganindependentschoolinstead.

Chapter4exploresthepossibleimpactofCovid-19andBrexitonthevaluesestimatedfor2021,bycomparingtheactualfindingswithahypotheticalalternativesituation,inwhichtheeconomicfootprintcontinuedtogrow,in2020and2021,atthepre-2020“trend”rate.Appendix1summarisesthemainnational-levelresultsintabularform.

Appendix2setsouttheregionaldistributionoftheeconomicfootprintandtaxpayersavings.Appendices3and4setouttheeconomicimpactofboardersatISCschools,andinternationalpupilsatISCschools,respectively.Appendix5summarisesthemethodology.13TheimpactofindependentschoolsontheUKeconomyTHEECONOMICFOOTPRINTOFISCANDALLINDEPENDENTSCHOOLSThischapteranalysesthe tothepreviousimpacteconomicimpactofISC assessmentundertakenbyschools,andthewider OxfordEconomicsin2018,independentschoolssector, relatingtovaluesin2017.ontheUKeconomyin2021. OxfordEconomicsevaluatesTheanalysisisanupdate theeconomicfootprintofISC2.1THEECONOMICFOOTPRINT:KEYFINDINGSIn2021,ISCschoolsmade 0.7%ofUKGVA,andsimilaratotalGVAcontributionto inmagnitudetotheGVAtheUKeconomyof￡14.1 generatedacrossacitythebillion(seeFig.5)8,equalto sizeofSheffield.Thisissome

schoolsandtheindependentschoolssectorintermsoftheircontributiontoUKGVA,employment,andtaxrevenues.710%higherthantheGVAimpactpreviouslyestimatedfor2017,onalike-for-likebasis.9,10Fig.5:Thetotaleconomicfootprint