Universities in Wales facing research ‘cliff edge’ due to the loss of EU funding

Universities in Wales have warned MPs that many important research, innovation and skills projects are facing an ‘urgent cliff edge’ due to the loss of EU structural funding.

Between 2014 and 2020, and the subsequent tail off years, around £370m was invested in university-related projects in Wales through ERDF and ESF funds.

There are 60 projects remaining which are due to come to an end this year, putting approximately 1,000 jobs at risk

Bridging funding of approximately £71m would enable ESIF funded projects in Wales to continue for a further 12 months

Universities in Wales contribute £5 billion of output to the Welsh economy and generate over 1 in every 20 jobs in Wales.

‘World leading’

A 2021 assessment of UK universities’ research impact found that more than 89% of that submitted in Wales was “world-leading” or “internationally excellent”, delivering tangible benefits to communities in Wales, the UK and across the world.

Speaking today at an event in Westminster, Professor Paul Boyle, Chair of the Universities Wales Research and Innovation Network, and Vice-Chancellor of Swansea University, told an audience of cross-party MPs that, without urgent bridging funding, the withdrawal of EU Structural Funds means that decisions have to be taken which will lead to the loss of the talent and infrastructure needed to support regional development in Wales.

“Universities play a crucial role in innovation, which in turn leads to the creation of new businesses, new jobs, and improving wages. This is one of the key economic benefits that our universities deliver for the nation, generating over £5 billion of output for the Welsh economy annually.” said Professor Boyle.

“In an increasingly competitive global marketplace, we risk failing to exploit one of this country’s most enduring and internationally recognised strengths” he warned.

“Stepping back from the cliff edge would save hundreds of jobs, support a range of cutting-edge innovation projects that are driving economic growth, and provide direct investment in areas that the UK government has stated are at the heart of its own levelling up ambitions,” he added.

Vital role

Geraint Davies MP, who sponsored the event, said: “Our universities play a vital role as economic engines across Wales, bringing jobs and investment to their local areas.

!These projects are important to our UK ambition to crank up sustainable economic growth, so their sudden loss would be a big blow to our communities our economy and all our longer-term interests.

“That’s why providing immediate bridging funding of just £71 million is of such importance.

“I will continue to work with our higher education sector and other MPs calling on the UK government to safeguard these projects and jobs to enable our universities to continue to deliver for the people and places of Wales.”