Spending Review 2025 – Phase 2 submission

MillionPlus, The Association for Modern Universities, welcomes the opportunity to contribute a written representation to the Spending Review.

With this submission MillionPlus presents recommendations designed to enhance the role of modern universities in driving economic growth, supporting the Government’s opportunity mission and addressing key funding challenges facing the sector.

Higher education turbocharges economic growth, with every £1 of public funding generating £14 in economic impact. As drivers of both social mobility and regional economic growth, modern universities generate £17bn in expenditure-related gross value add. Despite progress, challenges such as the ongoing higher education participation gap and rising dropout rates remain, exacerbated by financial pressures from the cost-of-living crisis.

To address these issues, MillionPlus recommends reintroducing maintenance grants, increasing maintenance loans and tuition fees in line with inflation on an annual basis, and implementing a Social Mobility Premium. The proposed £1,000 premium would help universities provide much-needed additional support for the most disadvantaged students to thrive. 

Modern universities are critical to meeting the UK’s skills needs, with a substantial proportion of graduates contributing to key sectors like healthcare, teaching and the creative industries. They also play a key role in regional economic development, with many graduates remaining in their local areas, fuelling regional growth and enterprise.

However, financial sustainability is of paramount concern, exacerbated by the rising costs of pensions. MillionPlus urges the Government to review pension schemes to allow universities more flexibility.

MillionPlus highlights the importance of international students, who contribute significantly to the UK economy, and calls for continued investment in research and development to support innovation and business growth

MillionPlus submission - Spending Review 2025 - Phase 2

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