| 1. |
INTRODUCTION |
6 |
| 2. | SUMMARY |
8 |
| 3. | ECONOMIC ENVIRONMENT |
13 |
| 3.1 | GDP |
13 |
| 3.2 | INFLATION & INTEREST RATES |
14 |
| 3.3 | UNEMPLOYMENT |
15 |
| 3.4 | HOUSEHOLD CONSUMPTION |
16 |
| 3.5 | HOUSING & CONSTRUCTION |
17 |
| 3.6 | POPULATION PROFILE |
19 |
| 3.7 | CONCLUSIONS |
20 |
| 4. | THE STATE EDUCATION SECTOR IN THE UK |
21 |
| 4.1 | STRUCTURE OF THE STATE EDUCATION SECTOR |
21 |
| 4.1.1 | England and Wales |
21 |
| 4.1.2 | Scotland |
21 |
| 4.1.3 | Northern Ireland |
22 |
| 4.2 | TYPES OF SCHOOL IN THE UK |
22 |
| 4.3 | LEAS – STRUCTURE & RESPONSIBILITIES |
25 |
| 4.4 | STATE EDUCATION FUNDING IN THE UK |
26 |
| 4.4.1 | Total Education Spending |
27 |
| 4.4.2 | DfES Funding |
28 |
| 4.4.3 | Spending by Function |
29 |
| 5. | THE HIGHER EDUCATION SECTOR IN THE UK |
31 |
| 5.1 | OVERVIEW & STRUCTURE |
31 |
| 5.1.1 | Impact of the ‘New Universities’ on Infrastructure Development |
32 |
| 5.1.2 | Student Growth |
33 |
| 5.1.3 | Tuition Fees |
34 |
| 5.2 | HIGHER EDUCATION FUNDING |
36 |
| 5.2.1 | Sources of Funding |
36 |
| 5.2.2 | Funding Councils |
37 |
| 5.2.3 | 2007 Budget |
42 |
| 5.2.4 | SRIF/Research Funding |
42 |
| 5.2.5 | Endowment Funds |
44 |
| 6. | CONTRACTORS OUTPUT IN THE UK EDUCATION SECTOR |
47 |
| 6.1 | TOTAL CONSTRUCTION OUTPUT |
47 |
| 6.1.1 | Value of Output - Construction New Work |
47 |
| 6.1.2 | Construction Output by Sector |
47 |
| 6.1.3 | Construction Output in 2007 and Beyond |
49 |
| 6.2 | CONTRACTORS OUTPUT IN THE EDUCATION SECTOR |
50 |
| 6.2.1 | Outlook for Education Construction Work |
51 |
| 6.3 | CAPITAL EXPENDITURE IN THE SCHOOLS SECTOR |
52 |
| 6.3.1 | Capital Expenditure Levels |
52 |
| 6.3.2 | Types of Capital Funding |
53 |
| 6.3.3 | Education Output - Government Targets and Progress to Date |
54 |
| 6.4 | PFI IN THE EDUCATION SECTOR |
57 |
| 6.5 | BUILDING SCHOOLS FOR THE FUTURE PROGRAMME |
58 |
| 6.5.1 | Background & Overview |
58 |
| 6.5.2 | Investment in BSF |
58 |
| 6.5.3 | How BSF Works |
59 |
| 6.5.4 | Scheme Update/Progress to Date |
60 |
| 6.5.5 | Problems with BSF |
65 |
| 6.5.6 | Construction Consortia |
66 |
| 6.5.7 | Future of BSF |
67 |
| 6.6 | ACADEMIES PROGRAMME |
68 |
| 6.6.1 | Programme Overview & Progress to date |
68 |
| 6.6.2 | Completed Academies |
69 |
| 6.6.3 | Construction Consortia |
70 |
| 6.6.4 | Problems with the Academies Programme |
71 |
| 6.7 | CAPITAL EXPENDITURE IN THE HIGHER EDUCATION SECTOR |
72 |
| 6.7.1 | Capital Expenditure Levels |
72 |
| 6.7.2 | University Estates |
73 |
| 6.7.3 | University Capital Building Programme |
74 |
| 6.7.4 | University Infrastructure – Student Accommodation |
78 |
| 7. | CONTRACTOR PROFILES |
87 |
| 7.1 | STRUCTURE AND SIZE OF THE CONTRACTING INDUSTRY |
87 |
| 7.2 | KEY CONSTRUCTION COMPANIES AND CONTACTORS |
88 |
| 7.3 | PRIVATE SECTOR CONSORTIA IN THE EDUCATION SECTOR |
92 |
| 7.4 | CONTRACTOR PROFILES |
95 |
| 8. | CONCLUSIONS & FUTURE PROSPECTS |
105 |
|
TABLES AND CHARTS |
| TABLE 1 | SUMMARY OF MAJOR CAPITAL SPENDING PROGRAMMES IN THE PUBLIC EDUCATION SECTOR |
8 |
| CHART 2 | INTEREST RATES AND INFLATION (CPI) FROM 1990-2009 |
15 |
| CHART 3 | PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2009 |
17 |
| CHART 4 | AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 (‘000) |
19 |
| TABLE 5 | EDUCATION ESTABLISHMENTS BY TYPE IN THE UK - 2006 |
23 |
| CHART 6 | VALUE OF TOTAL UK EDUCATION EXPENDITURE 2004-2010 (£ BILLION) |
27 |
| TABLE 7 | DFES SPENDING 2003 – 2008 (£BN) |
28 |
| TABLE 8 | DFES SPENDING BY FUNCTION 2002 – 2008 (£M) |
30 |
| TABLE 9 | TOTAL NUMBER OF HIGHER EDUCATION INSTITUTIONS IN THE UK - 2006 |
31 |
| TABLE 10 | NUMBER OF STUDENTS IN HIGHER EDUCATION IN THE UK 1998-2010 |
33 |
| TABLE 11 | SOURCES OF UNIVERSITY FUNDING – 2004-05 AND 2005-06 (£M) |
37 |
| CHART 12 | SOURCES OF FINANCE FOR UNIVERSITIES AND COLLEGES –INCOME 2005-06 |
38 |
| TABLE 13 | HEFCE FUNDING FOR UNIVERSITIES 2005-06 TO 2007-08 (£M) |
39 |
| TABLE 14 | HEFCE ENGLAND FUNDING 2007-08 – TOP 10 UNIVERSITIES |
40 |
| TABLE 15 | SFC SCOTLAND FUNDING 2007-08 – TOP 10 UNIVERSITIES |
41 |
| TABLE 16 | SRIF ROUND 3 FUNDING 2006-08 – TOP 10 UNIVERSITIES |
43 |
| TABLE 17 | TOP 10 UNIVERSITY ENDOWMENT FUNDS 2005 (£M) |
45 |
| CHART 18 | VALUE OF CONSTRUCTION OUTPUT NEW WORK 1999-2009 (£ BILLION) |
47 |
| CHART 19 | VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2006 |
48 |
| TABLE 20 | CONTRACTORS’ OUTPUT OF EDUCATION SECTOR WORK (PUBLIC/PRIVATE) 1996-2006 (£M) |
50 |
| CHART 21 | UK EDUCATION CAPITAL EXPENDITURE 2004-2008 (£ BILLION) |
52 |
| TABLE 22 | CONSTRUCTION ACTIVITY IN THE UK EDUCATION SECTOR – PROGRESS TO DATE APRIL 2007 |
56 |
| TABLE 23 | FINANCIAL ALLOCATIONS UNDER BSF 2005-2008 (£M) |
59 |
| TABLE 24 | BUILDING SCHOOLS FOR THE FUTURE – CONTRACT STATUS (AS OF APRIL 2007) |
62 |
| CHART 25 | PROJECTED NUMBER OF BSF SCHOOLS OPEN 2007-2014 |
64 |
| TABLE 26 | PROJECTED* NUMBER OF BSF SCHOOLS OPEN WAVES 1-7 |
65 |
| TABLE 27 | BUILDING SCHOOLS FOR THE FUTURE – PREFERRED BIDDERS AS OF APRIL 2007 |
67 |
| TABLE 28 | ACADEMIES OPENED IN 2006 |
70 |
| TABLE 29 | TOP 10 CAPITAL ALLOCATIONS TO HIGHER EDUCATION INSTITUTIONS 2006-07 (£M) |
73 |
| TABLE 30 | UNIVERSITY ESTATE & CAPITAL BUILDING PROGRAMMES – 2005-06 |
75 |
| CHART 31 | TYPES OF STUDENT ACCOMMODATION IN THE UK – APPROXIMATE SHARE BY SECTOR 2006 |
79 |
| TABLE 32 | PROVISION OF STUDENT ACCOMMODATION AT MAJOR UK UNIVERSITIES 2005-06 |
81 |
| TABLE 33 | LEADING COMMERCIAL OPERATORS OF STUDENT ACCOMMODATION IN THE UK |
84 |
| CHART 34 | ESTIMATED NUMBER OF NEW STUDENT BED SPACES BUILT PER YEAR - 2000-2010 |
85 |
| TABLE 35 | MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2006 |
88 |
| TABLE 36 | UK’S TOP 20 CONTRACTORS BY GROUP TURNOVER 2005/2006 |
90 |
| TABLE 37 | LEADING EDUCATION CONTRACTORS AND PRINCIPAL PRIVATE SECTOR CONSORTIA |
93 |