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Robert Gordon’s College Economic Impact Assessment 6(37(0%(5


Table of Contents Executive Summary

4

1. Introduction

6

About RGC

6

Location

7

Where are RGC’s pupils from?

8

North East Catchment Area

8

2. Employment

9

Headlines

9

Detailed analysis FTE total impact (North East) 3. Annual expenditure impacts

9 10 11

Headlines

11

Detailed analysis

11

FTE total impact (North East)

13

GVA

13

4. Construction and technology

15

A brief explanation

15

The projects

15

Wider achievement through technology

16

5. City contributions

17

      

19

Appendix I

22

Methodology

22

Key assumptions

22

Appendix II

24

Glossary

24

Appendix III

26

Research objectives

26

Document structure

26

Appendix IV

28

About Aberdeen & Grampian Chamber of Commerce

28

About the Research Team

28

Contact

29

Robert Gordon’s College

29

Research queries

29

2


([HFXWLYH6XPPDU\ x

The Research Team at Aberdeen & Grampian Chamber of Commerce (AGCC) was commissioned to undertake an Economic Impact Assessment of Robert Gordon’s College (RGC)

x

The purpose of this report is to outline the economic impact of RGC in relation to aspects such as employment, expenditure, city contributions, public benefit and public sector savings

x

RGC is an independent co-educational school in Aberdeen city centre which accommodates around 1,630 pupils aged 3 – 18 through Nursery, Junior School and Senior School

x

Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire

x

Key findings emerging from the research include: R

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 employees are directly employed by RGC, with 251 Full Time Equivalent (FTE) employees employed in the North East

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 of RGC’s salary spend is within the North East, with only 2% going outside the region

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In total RGC supports  FTE jobs across the North East

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38% of RGC’s spending is with suppliers in Aberdeen City and Aberdeenshire

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Direct spend in the North East economy is Â…P

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RGC’s total economic impact in the North East is estimated at …P

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Capital investment projects between 2009 and 2017 have accounted for Â… of expenditure

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These projects are estimated to have supported around 430 short-term construction jobs, including indirect and induced impacts

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The College contribute more widely to others delivering for the City (e.g. Aberdeen Inspired and Aberdeen Art Gallery)

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The equivalent cost of educational provision across the public sector for RGC’s 1,600 pupils would be a year. A direct saving to Aberdeen City and Aberdeenshire education budgets each year.

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49% of the 142 Bursaries provided by RGC in 2016/17 reached the most deprived areas in the region

4


 ,QWURGXFWLRQ About RGC Robert Gordon’s College (RGC) is an independent co-educational school in Aberdeen city centre, established in 1750 as a result of a bequest by Robert Gordon, an Aberdeen businessman and entrepreneur. The school comprises a Nursery, Junior School and Senior School, accommodating typically around 1,630 pupils aged 3 – 18 through the Nursery (30), Junior School (500) and Senior School (1,100). Remaining true to the philanthropic ethos of its founder, Robert Gordon, the school operates as a sustainable business with a strong charitable ethos. Demand for places remains robust and the school continues to attract families from a broad range of economic backgrounds and nationalities. The pupil community is diverse with over 37 nationalities represented. The Sunday Times School Guide 2017 named Robert Gordon’s College the Scottish Independent Secondary School of the Year. In 2015 RGC completed The Wood Foundation Centre for Science and Technology - the largest school centre for science education in Britain, along with The Craig Centre for Performing Arts - a state of the art performance and digital recording venue. This has been one of the most significant developments in the history of the College and is being recognised as a UK showcase school for STEAM (Science, Technology, Engineering, Arts and Mathematics). The Wood Foundation Centre for Science and Technology has been awarded the 2017 Education Business School Building Award and was judged to be the most technically advanced building constructed for the purpose of teaching present and future pupils. This facility has been used by young people from around the North East many of whom are not pupils at RGC. Robert Gordon’s tradition of academic strength and the high quality learning and teaching available to pupils was underlined by the highly successful 2016 inspection report from Her Majesty’s Inspectors of Education. The inspectors noted that "Learning and teaching is of high quality and there are examples of outstanding practice. Children and young people enjoy learning and respond very well to the caring ethos." The school’s tradition of academic success is demonstrated by strong exam results year on year. In 2016, 62 S5 pupils achieved five or more straight A passes at Higher. The A-B Higher pass rate is at its highest point of 85%, with 4 out of every 5 grades being at A or B. In S6 77% of Advanced Higher grades are at A or B and 96% of or S6 Leavers go on to Higher Education, mostly in Scotland, but also to universities in England including Oxford, Cambridge and London.

6


Location Robert Gordon’s enjoys an unrivalled city centre location, convenient for transport from all parts of North East Scotland. The campus centres on the historic Auld Hoose, around which has developed a range of buildings fitted out to the highest educational standards.

Easily accessible by car, bus, train and air, RGC is centrally located in Aberdeen, situated on Schoolhill.

7


Where are RGC’s pupils from? The maps below highlights areas within Aberdeen City and Aberdeenshire where the majority of pupils reside. Approximately 71% of pupils reside in Aberdeen and 29% live in Aberdeenshire. One in seven pupils at RGC secondary level attend on a means-tested bursary.

North East Catchment Area1

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2. Employment Headlines

385 employees directly employed by RGC

ÂŁ11.8m 251 FTE in salary costs in 2016/17

gross employment to 251 gross full time roles

98% of RGC salary spend in North East (ÂŁ11.5m)

313 net FTE Jobs supported in the North East through RGCâ&#x20AC;&#x2122;s activities

Detailed analysis Table +.1 shows the economic contribution of RGCâ&#x20AC;&#x2122;s employment impact both in the North East and elsewhere. From this analysis we find that 98% of RGCâ&#x20AC;&#x2122;s salary spend is within the North East, with only 2% going outside the region. This analysis is based on salary data for 2017/18. Table +.1 Gross economic contribution â&#x20AC;&#x201C; salaries (AGCC assessment) /RFDWLRQ 1( 2XWVLGH1( 7RWDO

6DODULHV DFWXDO  ÂŁ11,504,689 ÂŁ285,199 ÂŁ11,789,888

RGC employ 385 people, with 379 based in Aberdeen City and Aberdeenshire, as shown in Table +.2. In total, RGC employ 210 people on a full-time basis and 175 on a part-time basis. Table +.2 Gross employment /RFDWLRQ 1( 2XWVLGH1( 7RWDO

MREV 379 6 385

While it is important to know how many people are employed by the College for studies of this nature, it is important to create common or comparable metrics. For employment we create a measure of Full Time Equivalent (FTE) employment. For example: x one full-time role is equivalent to 1 FTE x two part-time roles where both people work 2.5 days per week is also equivalent to 1 FTE We have calculated the FTE employment at RGC by using average salary data, this allows us to calculate the corresponding number of full time equivalent employees (see Table +.3).

9


Table +.3 Gross FTE jobs /RFDWLRQ 1( 2XWVLGH1( 7RWDO

)7( 251 6 257

The table shows that in total, once we remove jobs which ‘leak’ out of the area, 251 FTE jobs are generated by RGC. The location of FTE jobs indicates a high retention of salary spend within the North East into the local economy. FTE total impact (North East) Table +.4 illustrates the total impact of RGC’s activity on employment in the North East and shows that RGC supports the full time equivalent of 313 jobs. Using the earlier glossary shows that the table includes the indirect and induced employment estimates. These are calculated using industry specific multiplier values which are published by the Scottish Government. Table +.4 FTE total impact in the North East 7\SHRIHPSOR\PHQWFRQWULEXWLRQ 1(GLUHFW 1(LQGLUHFW 1(LQGXFHG 7RWDO 5RXQGHG

)7( 251 24 38 313

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 $QQXDOH[SHQGLWXUHLPSDFWV Headlines

ÂŁ5.29m

ÂŁ1.98m

direct gross expenditure

direct gross expenditure in North East

38%

ÂŁ3.33m

of direct expenditure secured by North East based suppliers

total net expenditure impact across North East

Detailed analysis The assessment of expenditure has been undertaken using both annual reports and management accounts from 2015/16. This is what we call our â&#x20AC;&#x2DC;typical yearâ&#x20AC;&#x2122; and has been used to present the economic impact of RGC expenditure. The data used allows us to breakdown expenditure by the type of service or good, that is important because spending on different things creates different economic benefits. Our analysis also assesses the percentages of expenditure which are secured by suppliers within the North East, with our analysis undertaken in the same way as the staffing assessments by using postcode analysis. Direct spending by RGC in the North East is estimated to be around ÂŁ5.29m, based on spending during the 2015/16 financial year. Of this the gross expenditure in the North East is ÂŁ1.98m. This is based on the estimated proportion of expenditure using supplier location which also shows 38% of RGCâ&#x20AC;&#x2122;s spending is with suppliers in Aberdeen City and Aberdeenshire. Table <.1 Economic contribution â&#x20AC;&#x201C; direct expenditure in supply chain Direct gross expenditure Spatial area Gross expenditure NE ÂŁ1,984,179 Outside NE ÂŁ3,301,974 Total ÂŁ5,286,153 While the analysis and numbers can show the impacts created by RGC, it is important to also understand the impact more fully. To understand the mechanisms through which impacts are created we undertook interviews and present these as case studies. These case studies help demonstrate the wider impacts alongside the financial analysis.

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&$6(678'<–,163,5(&$7(5,1* Inspire Catering have been working with RGC since 2015 as their appointed service catering provider. They provide a range of services to RGC such as the lunchtime catering service for over 500 pupils and staff, provision of catering services at the RGC Countesswells sports facility at weekends and ad hoc catering for RGC’s events and meetings when required. +RZLPSRUWDQWLV\RXUEXVLQHVVUHODWLRQVKLSZLWK5*&" It’s very important for us and the College. RGC is within the independent schools market in Scotland, RGC has a fantastic reputation and is an award winning school. Recently it won a major award so it already has a very high profile within the independent schools market in Scotland. We are a service provider to a number of schools within Scotland and we are delighted to have RGC as a client partner. It is important for us to be able to use that relationship in terms of including it in material that we may put together when we are trying to secure other contacts, it’s very important. We are very proud of our relationship and on the basis of our reputation both at RGC and in the independent schools market, we’d certainly wish to use that as a means to secure additional business. :KDWLPSDFWZRXOGLWKDYHRQ\RXUEXVLQHVVLI5*&ZDVQRWRQHRI\RXUFXVWRPHUV" The turnover of the contract is significant and obviously therefore there would be a financial consequence to the Inspire Catering business of not having it, in terms of both turnover and the income that it generates for our company. We currently employ 16 staff at the school so obviously there would be an implication of 16 members of staff less working for Inspire Catering, so a significant impact on that. Our business is growing steadily, we have very good year-on-year growth and overall employee numbers and we want that to continue. Therefore, not having the RGC contact would have quite a significant impact on our growth projections. $UHWKHUHDQ\RWKHURUJDQLVDWLRQVWKDWEHQHILWIURP\RXUUHODWLRQVKLSZLWK5*&"'R\RXXVH RWKHUVXSSOLHUVWRPHHWWKHVFRSHRI\RXURIIHUWR5*&" One of the guiding principles of Inspire Catering is to utilise as many local suppliers as we can. We are an independent Scottish company based in Scotland, providing services to Scottish clients based in Scotland and using as many Scottish suppliers. For example, we are the only contract catering company that has the Scotch beef accreditation for all our operating sites, so therefore our butcher is delivering the best possible Scottish beef to RGC. We’re buying haddock that’s landed in Peterhead. All the milk that’s used on site comes from local dairies. We use some cheese and bread from local suppliers in Aberdeen. So we have a business relationship directly with RGC but a lot of our suppliers are also benefiting from that relationship because they are then providing the goods or services that they provide to the site.

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The first phase of further economic analysis is the assessment of indirect impacts. This is the benefit created when the Collegeâ&#x20AC;&#x2122;s suppliers spend with their supply chain (indirect impact or Type I), presented in Table <.2. To calculate this we use the direct gross expenditure and apply a â&#x20AC;&#x2DC;Type Iâ&#x20AC;&#x2122; indirect multiplier. Table <.2 Economic contribution â&#x20AC;&#x201C; indirect Indirect impact NE Outside NE Total indirect impact

ÂŁ760,405 ÂŁ1,265,430 Â&#x2026;

The next phase of the analysis is to assess the induced impact of the College. The induced impact is that which arises from household spending by employees of the supply chain. To calculate this we use a â&#x20AC;&#x2DC;Type IIâ&#x20AC;&#x2122; or induced multiplier. Table <.3 Economic contribution â&#x20AC;&#x201C; induced Induced impact NE Outside NE Total

ÂŁ589,470 ÂŁ980,967 Â&#x2026;

Table <.4 Economic contribution â&#x20AC;&#x201C;Total multiplier impact in North East Total multiplier effect Indirect impact Induced impact Total

ÂŁ760,405 ÂŁ589,470 Â&#x2026;

FTE total impact (North East) Table <.5 below summarises the total direct, indirect and induced impact of RGCâ&#x20AC;&#x2122;s spend within the region and we have calculated that the overall impact is approximately ÂŁ3.33m. Table <.5 Total economic contribution â&#x20AC;&#x201C; Expenditure in the North East Total Contribution NE direct NE indirect NE induced Total

ÂŁ1,984,179 ÂŁ760,405 ÂŁ589,470 Â&#x2026;

GVA Expenditure is a measure of output and often these reports present something called Gross Value added (GVA) 2. Using a GVA effect multiplier again based on Government data we estimate that RGC contributes ÂŁ3.79m to the North East economy.

2

*URVVYDOXHDGGHG *9$ is the contribution to an economy comprised of the profits, business rates and wages a business or industry creates or pays. UK GDP is the total GVA from all businesses in the UK economy, plus net taxes and subsidies.

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&$6(678'<–%,*)227$'9(1785(6 Bigfoot Adventures are an outdoor activity company who have been working with RGC since around 1993, initially delivering an outdoor activity programme, and now delivering the Duke of Edinburgh programme. Bigfoot Adventures currently run around 60-70 days of planned work for RGC per year through a combination of training in the school and delivery of the Duke of Edinburgh programme. Approximately 350 pupils are taken out in the field twice a year depending on their award level.

+RZLPSRUWDQWLV\RXUEXVLQHVVUHODWLRQVKLSFRQWUDFWZLWK5*&" The lion’s share of our business is now with Robert Gordon’s. We ran an outdoor centre until just over 15 years ago and sold off the assets. We just took this (piece of) work with us. This is the only work that we do now. :KDWLPSDFWZRXOGLWKDYHRQ\RXUEXVLQHVVLI5*&ZDVQRWRQHRI\RXUFXVWRPHUV" We do about 60-70 days a year, mixed between in the field and coming into the school, and that employs 4 additional people: administration/support plus three instructors. Is there anything else you’dOLNHWRVD\DERXW\RXUUHODWLRQVKLSZLWK5*&" It’s always been a comfortable, informal relationship. I think there’s a level of trust and understanding developed over the years. It’s been great, I quite like it like that.

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 &RQVWUXFWLRQDQGWHFKQRORJ\ A brief explanation Maintenance of buildings and equipment is an important part of everyday activity at RGC. The College has also invested a significant amount of capital expenditure in its buildings and facilities. These projects are excluded from the economic assessment because they are not â&#x20AC;&#x2DC;typicalâ&#x20AC;&#x2122; and if a large capital project was undertaken in the specific year it might overestimate the economic contribution in that year. Nevertheless, investment is a major part of what RGC does and this section outlines the major capital investments made in recent years (2009-2017).

The projects -XQLRU6FKRRO%XLOGLQJ This project was the purchase of a building from Robert Gordon's University and a major refurbishment to house the new Junior School. The "Phase I" project was completed over the 2008/09 and 2009/10 financial years with the retention paid in 2011/12.

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6ZLPPLQJ3RRO8SJUDGH The existing swimming pool received a significant upgrade and this refurbishment project was carried out from late 2012 to mid-2013 with the retention paid the following year.

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&ROOHJH+HDWLQJ6\VWHP The College heating system was upgraded over two phases in 2011/12 and then in 2013/14 to replace the boilers which were aging towards end of their useful life and also to improve heating efficiency.

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7KH :RRG )RXQGDWLRQ &HQWUH IRU 6FLHQFH DQG 7HFKQRORJ\ DQG 7KH&UDLJ&HQWUHIRU3HUIRUPLQJ$UWV RGC purchased the Technical Building from Robert Gordon's University and carried out a major refurbishment project to provide state of the art facilities for their Science, Technology, Computing and performing arts subjects. The "Phase II" project was carried out from late 2013 to mid-2015 with the retention paid in 2016/17.

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&RXQWHVVZHOOV1HZ6\QWKHWLF7XUI6SRUWV3LWFK A new first class sand-dressed surface was installed during the summer of 2017 for hockey and tennis use at the school. This complements the existing water-based synthetic turf hockey pitch which is primarily used for competition and elite performance.

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Again it is possible to put these projects into some context by converting the expenditure into the volume of jobs they may have created. In total the projects above account for ÂŁ28,938,000 of expenditure which have been delivered over a number of years. Using published data we also know that the average construction employee generates around ÂŁ124,000 of output per year3. In total we estimate that these projects have created around 230 short-term construction jobs. Most of these jobs were based with contractors in the North East and hence the total impact would be 430 shortterm jobs, including indirect and induced impacts.

Wider achievement through technology

&$6(678'<â&#x20AC;&#x201C;',*,7$/75$16)250$7,21 RGC has undertaken a process of digital transformation to keep it at the leading edge educationally and socially. While initial plans were focused on providing new IT equipment to pupils that focus quickly changed following guidance and support given by local entrepreneur Graeme Gordon (MD of Internet for Business). As part of this transformation information technology was moved from being a central service to an enabler within the school. This included: 1. Allowing / freeing teachers to use digital technology to create better lessons and understanding 2. Educating parents and involving them in the role of digital technology in a modern blended learning environment 3. Freeing up internet access protocols to allow pupils the responsibility to use digital technology fully 4. Creating strong links between new physical spaces such as The Wood Foundation Centre for Science and Technology and new digital technology The classroom environment has been transformed and at home pupils can work online and submit work to a virtual classroom and interact whilst out of school. This journey has helped attract new staff and expertise has been shared with an aspiration to share this best practice across the North East. Importantly this process will evolve with continual improvement ensured with a new Digital Strategy Group now in place.

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16


       Robert Gordon College is a contributor to the wider life of Aberdeen and Aberdeenshire. Of course in part this is demonstrated in itself through the economic contribution identified. It is further illustrated through the role it has in educating around 1,630 young people and the future contribution they will make. However, the College is a key City Centre location and the two case studies below help show how RGC contributes more widely to others delivering for the City.

&$6(678'<â&#x20AC;&#x201C;18$57:,7+$%(5'((1,163,5(' The NUART festival arrived in Aberdeen in 2017 and was a festival focused on internationally renowned artists coming to leave their unique mark on our cityâ&#x20AC;&#x2122;s walls. The event took place in April and was an ambitious and bold project, the like of which Aberdeen City has not seen before. Robert Gordon College had already worked with Aberdeen Inspired by supporting the annual Christmas Village. As part of the NUART project Robert Gordon College was approached early on by organiser Aberdeen Inspired to provide a â&#x20AC;&#x2DC;wallâ&#x20AC;&#x2122; to be part of the festival. We interviewed Adrian Watson, Chief Executive of Aberdeen Inspired, and it was clear that the commitment of Robert Gordon College was key to the success of the project, he said: â&#x20AC;&#x153;The endorsement of Robert Gordon College was vital because their brand brings credibility and they have a strong reputation. We were proud and privileged to have their involvement and they showed both bravery and foresight when agreeing to be an early adopter. They were right at the fore of the ambition to help develop the cultural offering of the City and I am in no doubt that being associated with their brand helped make our job much easier to attract others to lend us their propertiesâ&#x20AC;? The commitment of Robert Gordon College helped NUART deliver an estimated net economic contribution of ÂŁ158,599* and increased pride in the City of Aberdeen reported by 80% of respondents to a recent survey. RGC is also a levy payer and fully supports the work of Aberdeen Inspired.

* Based on visitor volume of 5,000, although accurate visitor numbers were not recorded

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&$6(678'<–$%(5'((1$57*$//(5< Aberdeen Art Gallery is currently undergoing a major renovation with a capital cost of over £30m. The Gallery backs onto the College and the cooperation of the Gallery’s neighbour has been key to the success of the development programme. Early in the lifecycle of the project Robert Gordon College was approached to identify if access could be granted for the renovation works, an agreement was also reached where the College offered ‘lay-down’ space in the car park area. Over time that arrangement has evolved and the College has offered further support. Iain Reid from Aberdeen City Council said: “The project couldn’t realistically have gone ahead on the same scale or scope without Robert Gordon College. Without their cooperation the project costs could have risen by 25% to 50% and this may have meant it was not viable or would have been significantly reduced in scope” Based on the comments above the partnership with the College has had an impact of between £7.5m and £15m and has ultimately secured the future of Aberdeen Art Gallery as a high class visitor attraction.

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        Using data for a typical year, we can estimate financial savings to Aberdeen and Aberdeenshireâ&#x20AC;&#x2122;s education budgets arising from the schooling provided at Robert Gordonâ&#x20AC;&#x2122;s College4. Our analysis shows the equivalent cost of educational provision across the public sector for pupils at RGC would be ÂŁ9.5m each year. This analysis is summarised below for the 1,600 pupils that attend RGC. Table 5.1 Total economic contribution â&#x20AC;&#x201C; Expenditure in the North East No. of places

Benefit to Aberdeen City and Aberdeenshire

Junior School

500

ÂŁ2,333,500

Senior School

1,100

ÂŁ7,177,500

727$/

1,600

ÂŁ9,511,000

RGC has also been able to demonstrate a strong long term commitment to inclusive educational provision. In 2016/17 approximately ÂŁ1.5m was available for their Senior School Bursary Programme supporting pupils across S1 to S6. This programme is delivered with support from the Aberdeen Endowments Trust, other trusts and funds, and the Collegeâ&#x20AC;&#x2122;s own endowments. These educational savings and Bursaries are important elements of the charitable function of RGC. One in seven senior school pupils are receiving Bursary support Further analysis of the Bursary Awards granted by RGC shows that, of the 142 Bursaries provided in 2016/17, 49% reach the most deprived areas in the region5. When considering Aberdeen City alone, 59% of the 117 Bursaries are supporting individuals from the areas most deprived areas. The table below summarises the overall assessment of Bursaries provided. Post Code

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No Pupils receiving Bursaries

Deprivation Area

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Appendix I Methodology x x

As explained we chose a ‘typical year’ which was 2015/16 unless identified. The approach employed for this economic analysis is detailed below. R Employee counts were derived from salary information for 2017/18 and the total employee numbers were calculated for the North East and outside the North East. The percentage proportions of each group were used to allocate employee expenditure (salaries and other HR costs) to each region. R Expenditure was detailed by itemised categories and was allocated to the relevant Standard Industrial Classification (2013) codes: Construction, Building & landscape services, Financial services, Insurance, Education, Computer services, Electricity, Cleaning, Post & courier, Travel, Business support services, Other professional services, Paper & paper products, Printing, Furniture, Sports & recreation, Food & beverage services, Public administration, Publishing services. R After spending was disaggregated we used Type I and Type II output multipliers to calculate the indirect and induced impact rather than simply apply an aggregate multiplier to the total spending. R The location of RGC’s supplier spend data for 2016 allowed us to calculate the proportions of spend allocated within the North East and spend which ‘leaked’ outside of the region. We calculated that 38% of supplier spend remained in the region with a ‘leakage’ rate of 62%. These calculations enabled us to apportion spend to the itemised categories in the Management Accounts for 2015/16 and apply the relevant multipliers.

Key assumptions This report has used the following key assumptions: R R

R

Expenditure was derived from Management Accounts for the 2015/16 financial year, discounting any costs associated with staffing and employment as these costs were included in the employment impact. Employee counts are based on salary information for 2017/18. Full time equivalent numbers were calculated by dividing the salary of each part-time member of staff by the overall average full-time salary, and then taking a total count of their FTE scores. For example, this would mean that if the average full-time salary were £38,000 then a parttime member of staff with a £38,000 salary would have a FTE score of 1 and a part-time member of staff with a £19,000 salary would have a FTE score of 0.5. All multipliers used are provided by the Scottish Government and no location quotients were applied.

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$ ^‚‚ Glossary We’ve tried to keep the language in this report as simple as possible but it’s almost inevitable that we need to use some technical terms. Some of the terms we have used are explained below. %XUVDULHV– A bursary is an award made to a pupil to provide financial assistance towards full or part of part of the costs of their tuition fees. Robert Gordon's College offers free places and reduced fee places to pupils every year for entry into Secondary 1. Approximately £1.5m was available for our Senior School Bursary Programme in 2016-2017 enabling us to award 24 S1 bursaries to pupils joining the College in August 2017. These Bursaries are awarded after jointly assessing financial need and academic merit. *URVV – This is the initial contribution before we begin considering elements of the impact that are lost to the spatial area through leakage and other factors. /HDNDJH– We allow for ‘leakage’ when money or employment is lost to the spatial area. For example if a service is bought outside Aberdeen we remove this from the net impact because it has ‘leaked’ from the area 0XOWLSOLHUHIIHFW – The multiplier effect is the formal name for the ‘ripple effect’. Multiplier effects are created when money is spent in the economy on (say) a supplier and then that supplier spends with another supplier. This type of multiplier effect is called the ‘indirect impact’. The other type of multiplier effect is created when households spend as a result of employment generated by suppliers, this is called the ‘induced impact’. 1HW – The net impact is the total contribution after all non-additional elements are removed (e.g. leakage) and the all addition impacts (e.g. multiplier effect) are added. 6SDWLDODUHD – When we undertake economic contribution studies we always have to define the (geographical) area in which impacts are felt. The spatial area for this study is Aberdeen City and Aberdeenshire The approach that you will read is as follows: Total expenditure ƒ Salary / staff ƒ Non-salary

Salary / staff 6SOLW LQWR

ƒ gross North East ƒ gross outside NE

Non-Salary

&

ƒ gross North East ƒ gross outside North East

Plus P Pl lu th lus the multiplier m ltiplier effect mu effec ct Gross salary / staff NE ƒ plus indirect impact ƒ plus induced impact ƒ HTXDOVWRWDOQHWLPSDFW

Non-Salary NE

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ƒ plus indirect impact ƒ plus induced impact cost

3OXV 3OXV 3O DQ\

Other impacts

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24


Appendix III Research objectives This document provides a broad illustration of Robert Gordon College’s (RGC) significant contribution to the local economy. The report has been independently delivered and all data provided has been fully checked and verified. The types of impacts measured in this document include: x x x x x x

RGC’s (financial including tax and employment) direct, indirect and induced economic contribution to the economy The impact of RGC’s economic activity on the supply chain An assessment of ‘leakage’ – i.e. what proportion of spend is retained locally A short commentary on examples of RGC’s strategic contribution to various local initiatives and establishments An assessment of money saved by the public sector as a result independent primary and secondary education Contribution of RGC Bursaries

This report should be reviewed alongside material on the educational, community and charitable contributions the College is making. These reports outline the major role the College has in the North East region.

Document structure The economic impact of RGC will be presented under the following sub-sections: x x x x x x x

About RGC Where are RGC’s pupils from? Employment Annual expenditure impacts Construction and technology City contribution Public benefit and public sector savings

The report also includes appendices focused on explaining the research methods used and technical terms.

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$ ^‚„ About Aberdeen & Grampian Chamber of Commerce Aberdeen & Grampian Chamber of Commerce were commissioned by Robert Gordon’s College to conduct this Economic Impact Assessment and produce this report. Aberdeen & Grampian Chamber of Commerce is the North East’s leading business membership organisation and the largest Chamber in Scotland. Representing more than 1,250 organisations collectively employing 125,000+ people across all sectors, we work locally, nationally and internationally to support businesses from sole traders to multinational corporations in a myriad of ways: x x x x

From talking up the area and celebrating business success to lobbying for necessary change From equipping the region's workforce with the skills to succeed to issuing export documents for goods worth in excess of half a billion pounds every year From sourcing research and intelligence on our operating environment to providing unrivalled opportunities for networking, business development and best practice exchange And much more

About the Research Team Within our team we have people who love to gather, interrogate and interpret data, before telling you a story in simple words about what it means and what you need to do with it. As an extension to our client’s team we’re here to deliver on our promises and fit to your business needs. We use our expertise to decide how we find the answer to our client’s questions and ensure that by working with us our clients have access to: x

A team that has completed over 100 projects in the last three years

x

Expert staff who are registered with the Market Research Society

x

Great value – members receive a 50% reduction from commercial rates

x

People who can transform complex data into simple, insightful stories and make the process fun, exciting and engaging for you

If you have any queries about this report or about the research services available at the Aberdeen & Grampian Chamber of Commerce, please contact us at research@agcc.co.uk.

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&RQWDFW  Robert Gordonâ&#x20AC;&#x2122;s College Laura Presslie Schoolhill, Aberdeen, Scotland AB10 1FE 7HO 01224 611236 (PDLO l.presslie@rgc.aberdeen.sch.uk www.rgc.aberdeen.sch.uk

Research queries James Bream Aberdeen & Grampian Chamber of Commerce The Hub Aberdeen Energy Park AB23 8GX 7HO 01224 343930 (PDLO Research@agcc.co.uk https://www.agcc.co.uk/

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2017 AGCC RGC Economic Impact Report  

Robert Gordon’s College commissioned the Research Team at Ab...