06 Dec 2023
By Stuart Patrick, Chief Executive of Glasgow Chamber of Commerce
In my constant search for positive signals for the future of Glasgow’s economy, Monday was a good day. If you want to see evidence of the new science and technology rich industries emerging in our city, I recommend a tour of our research universities. I would especially encourage our political leaders, both national and local, to make that tour.
I spent the early morning offering Chamber support to the work of the Glasgow City Innovation District at the University of Strathclyde. Glasgow’s first Innovation District is attracting a lot of attention. Delegations from Jordan, Indonesia, South Australia and Singapore have all explored the district in the last quarter as its role in attracting investment in sectors as diverse as space, fintech, maritime and AI becomes ever more apparent. International governments are especially interested, not least since the District is showing just how an innovation community is developed using government programmes and private funds together. GCID Director Alisdair Gunn is a ubiquitous figure turning the dry concept of an innovation eco-system into a burgeoning reality of events, initiatives and connections that is already encouraging companies into the district.
In the late afternoon I attended the formal launch of the new home for the Adam Smith Business School at the University of Glasgow; it becomes the third new building on the former Western Infirmary site. As just one example of the Business School’s practical research, it has created the Centre of Innovation for Financial Regulation together with Strathclyde and FinTech Scotland as a critical component of Glasgow’s role in the financial services. That’s just one of the 11 projects which the two universities are delivering using £33m of UK Government investment from their Innovation Accelerator Programme. The Business School is also one of the most successful in the country at attracting international students.
It matters therefore that our universities are thriving. The prospects for future growth are positive. One recent study by a well-respected UK property agency suggests Glasgow’s full-time student population could grow by almost a fifth in the next five years.
The business of attracting international students is essential to our universities’ success. We would of course also like to see more places for home-grown talent but in recent years the funding needed from the Scottish Funding Council has been flat and is being eroded by inflation. The Universities are therefore drawn ever more to alternative sources. The international student market is one option, albeit a highly competitive one.
That competition is becoming ever more severe as countries like Australia and Canada expand their offers of post study work visas. Australia now offers a four-year work visa for over 400 disciplines, something the UK Government looks unlikely to match.
Equally problematic is the supply of student accommodation. Glasgow currently has one of the lowest provisions of purpose-built student housing in the UK with a ratio of four students for every available bed compared to a national average of three. The city’s existing development pipeline would tackle only half the gap. The shortage of accommodation is acute and attracted very negative comments from the National Union of Students earlier in the year.
The development market is gearing up to respond and I see a steady stream of proposals coming up for planning decisions. It is therefore extremely concerning to note the decision made by Glasgow City Council Planning Committee to reject Fusion Students’ proposal for the former Marks and Spencer’s unit on Sauchiehall Street. One must hope this reflects the specific circumstances of that case and not a wider concern about the importance of finding homes for a growing student community.
The influence of new technology in solving our most fundamental challenges, whether that be achieving net zero targets or improving on mediocre productivity, is becoming ever more obvious. Our universities are amongst our best assets for harnessing that technology and our politicians have opportunities they could take in funding allocations, immigration decisions and planning approvals and it would be helpful if they didn’t miss them all.
This article was first published in The Herald on Wednesday 6 December 2023
