EDUCATION RMI MARKET - UK 2009-2013

Table of Contents

1. INTRODUCTION 4

• 1.2 SOURCES 5

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 7

3. ECONOMIC ENVIRONMENT 10

• 3.1 GDP 10
• 3.2 INFLATION & INTEREST RATES 11
• 3.3 UNEMPLOYMENT 12
• 3.4 HOUSEHOLD CONSUMPTION 12
• 3.5 HOUSING & CONSTRUCTION 13
• 3.6 STERLING 15
• 3.7 POPULATION PROFILE 16
• 3.8 CONCLUSIONS 17

4. EDUCATION RMI MARKET 18

• 4.1 DEFINITION 18
• 4.2 OVERVIEW OF NON-DOMESTIC RMI OUTPUT 18
• 4.3 EDUCATION RMI MARKET 21
  • 4.3.1 Market Size 21
  • 4.3.2 Market Mix by Establishment Types 24

5. LOCAL AUTHORITY MAINTAINED & OTHER NON-INDEPENDENT SCHOOLS 26

• 5.1 DEFINITION 26
• 5.1.1 Schools in England & Wales 26
• 5.2 PUBLIC SECTOR SCHOOLS ESTATE 27
  • 5.2.1 Overview 27
  • 5.2.2 England 28
  • 5.2.3 Devolved Administrations 30
• 5.3 MARKET FACTORS 33
  • 5.3.1 Total Education Expenditure 33
  • 5.3.2 Governments Capital Expenditure in the Schools Sectors 36
  • 5.3.3 Condition of Schools Estates & Maintenance Backlog 38
  • 5.3.4 Local Authorities Capital & Schools Revenue Expenditure on Repairs & Maintenance 40

6. INDEPENDENT SCHOOLS 47

• 6.1 INTRODUCTION 47
• 6.2 INDEPENDENT SCHOOLS ESTATE 47
• 6.3 CAPITAL EXPENDITURE 49

7. HIGHER EDUCATION 51

• 7.1 INTRODUCTION 51
• 7.2 HIGHER EDUCATION ESTATE 51
• 7.3 MARKET FACTORS 53
  • 7.3.1 Higher Education Funding 53
  • 7.3.2 Student Numbers 57
  • 7.3.3 Condition & Infrastructure Backlog 58
  • 7.3.4 Capital & Revenue Expenditure in the Higher Education Sector 60

8. FURTHER EDUCATION 62

• 8.1 INTRODUCTION 62
• 8.2 FURTHER EDUCATION ESTATE 62
• 8.3 MARKET FACTORS 63
  • 8.3.1 Further Education Funding 63
  • 8.3.2 Condition & Infrastructure Backlog 64
  • 8.3.3 Capital & Revenue Expenditure 65

9. CONTRACTOR PROFILES 66

• 9.1 INTRODUCTION 66
• 9.2 LEADING NATIONAL CONTRACTORS 66
• 9.3 MAJOR RMI CONTRACTORS TO THE EDUCATION SECTOR 66

TABLES AND CHARTS

• CHART 1 EDUCATION RMI MARKET £ MILLION 2003/04 - 2011/12 7
• CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2013 11
• CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2013 13
• TABLE 4 EXCHANGE RATE FLUCTUATIONS 2002-2009 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15
• CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 CENSUS (' 000) 16
• TABLE 6 CONTRACTORS OUTPUT OF NON HOUSING NEW WORK & RMI 2003 -2008 (£M) 19
• TABLE 7 NON-RESIDENTIAL RMI OUTPUT BY WORK TYPES - GENERAL FABRIC, ELECTRICAL, PLUMBING, JOINERY, ROOFING, GLAZING, DECORATING, ETC - PUBLIC AND COMMERCIAL SECTOR SPLIT - 2007 (£M) 20
• TABLE 8 EDUCATION RMI MARKET £ MILLION 2003/04 - 2011/12 21
• CHART 9 EDUCATION NEWBUILD AND R & M TRENDS 2003 -2008 BY VALUE 23
• CHART 10 EDUCATION RMI MARKET BY TYPES OF ESTABLISHMENT BY EXPENDITURE APPROXIMATE SHARES 2008 24
• TABLE 11 UK PUBLIC SECTOR SCHOOLS BY TYPE & NUMBER 2008 28
• TABLE 12 ENGLAND- NUMBER OF SCHOOLS BY REGION AT APRIL 2008 29
• TABLE 13 ENGLAND - NUMBER OF SCHOOLS & GROSS INTERNAL FLOOR AREA 2008 (M2). 29
• TABLE 14 SCOTLAND - NUMBER OF SCHOOLS BY LEA AT APRIL 2008 30
• TABLE 15 SCOTLAND - NUMBER OF SCHOOLS & GROSS INTERNAL FLOOR AREA 2008(M2). 31
• TABLE 16 WALES - NUMBER OF STATE SCHOOLS BY LEA AT JANUARY 2009 31
• TABLE 17 WALES - NUMBER OF SCHOOLS & GROSS INTERNAL FLOOR AREA BY TYPE 2008 (M2). 32
• TABLE 18 NORTHERN IRELAND - NUMBER OF STATE SCHOOLS MARCH 2009 32
• TABLE 19 NORTHERN IRELAND - NUMBER OF SCHOOLS & GROSS INTERNAL FLOOR AREA BY TYPE (M2) 33
• CHART 20 UK TOTAL EDUCATION EXPENDITURE 2004-2011 (£ BILLION) 33
• TABLE 21 DCSF SPENDING 2007/08 - 2011/11 MIX BY RESOURCES & CAPITAL (£ BILLION) 35
• CHART 22 SCHOOL BUILDINGS CAPITAL EXPENDITURE 2007-2011 (£ BILLION) 37
• TABLE 23 DCSF CAPITAL FUNDING STREAMS - ALLOCATION FOR SCHOOLS 2008-09 TO 2010-11 (£M) 37
• TABLE 24 ENGLAND - CONDITION OF SCHOOLS ESTATE, PERMANENT BUILDINGS 39
• TABLE 25 SCOTLAND - CONDITION OF SCHOOLS ESTATE 2008 40
• TABLE 26 DCFS DE MINIMIS CAPITAL EXPENDITURE LEVELS ON SCHOOLS R & M WORKS - PRIMARY & SECONDARY SCHOOLS BY AREA 41
• TABLE 27 SCHOOLS MAIN TYPES OF R & M WORKS & ORGANISATIONS RESPONSIBLE FOR FUNDING AND DELIVERY 42
• TABLE 28 TYPICAL ANNUAL REVENUE & MAINTENANCE EXPENDITURE LEVELS BY SCHOOL TYPE 43
• TABLE 29 ENGLISH LEAS - BUILDING MAINTENANCE & IMPROVEMENT REVENUE EXPENDITURE (E12) 2003-04 TO 2007-08 44
• TABLE 30 ENGLISH LEAS - DCSF SPENDING BY SCHOOLS ON R&M (GROSSED UP DATA) £M 2003/04 - 2006/07 45
• TABLE 31 UK INDEPENDENT SCHOOLS & HEADCOUNT BY NO. ESTABLISHMENTS BY REGION 2008 47
• TABLE 32 UK INDEPENDENT SCHOOLS BY NUMBER BY TYPE 2008 48
• TABLE 33 UK INDEPENDENT SCHOOLS COUNCIL MEMBERS CAPITAL EXPENDITURE - NEW BUILD AND RMI 2004-08 (£M) 49
• TABLE 34 UK HE TOTAL ESTATE SIZE MILLION SQ M 2001/02 - 2007/08 51
• CHART 35 TYPES OF STUDENT ACCOMMODATION IN THE UK - APPROXIMATE SHARE BY SECTOR 2008 52
• TABLE 36 HE FUNDING BODIES BY REGION - TOTAL BUDGET AND CAPITAL BUDGETS 2009-10 55
• CHART 37 HEFCE GRANTS BY FUNDING STREAM 2009/10 56
• TABLE 38 NO. STUDENTS IN HIGHER EDUCATION UK 2000-2010 57
• TABLE 39 AGE & CONDITION OF UK HIGHER EDUCATION ESTATE 2006 59
• TABLE 40 HIGHER EDUCATION SECTOR - TOTAL REVENUE AND R & M COSTS 2001-2008 (£M) 60
• TABLE 41 SIZE OF UK FE ESTATE BY AGE OF BUILDINGS (% MIX - SQ.M) 63
• TABLE 42 CONDITION OF FE COLLEGE BUILDINGS IN ENGLAND 2006 64