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City has ‘lost out’ over university investment ‘broken promises’

Newport | Nicholas Thomas - Local Democracy Reporting Service | Published: 14:02, Wednesday July 16th, 2025.
Last updated: 09:36, Thursday July 17th, 2025
The USW campus in Usk Way, Newport
The USW campus in Usk Way, Newport

Newport has missed out on around £3 million of investment since a university merger and the closure of Caerleon Campus, a councillor has claimed.

Cllr Matthew Evans said student numbers in the city have plummeted in the past 15 years, and criticised “broken” promises to invest in higher education.

The University of South Wales (USW) was created in 2013 when the University of Newport, Wales merged with the University of Glamorgan – two years after a new city-centre campus for business and media opened on Usk Way.

The university’s campus in Caerleon was eventually closed down in 2016, despite opposition, and most of the site has been redeveloped for housing – except for the main block and some other listed buildings, which later found fame in the Netflix series Sex Education.

USW said it is “committed to providing our students, colleagues, and partners with the very best experience at our Newport Campus”.

Speaking at a council meeting this week, Cllr Evans, the leader of the opposition Conservative group, alleged the only university students apparently living in Newport these days are “a few from Bristol” – a far cry from the 10,000 he said the city welcomed in 2010/11.

Cllr Evans raised a recent claim that “when the Caerleon campus was sold for £6.2 million, there was an initial promise that all of this would be spent in the city”.

Optimism ‘ambitious’ new plan will make city centre more ‘vibrant’

On the university merger, he added: “Promises were made that there would not be any campus closures, which were then broken.”

The development of a so-called Knowledge Quarter in central Newport was meant to safeguard higher and further education, but Cllr Evans questioned the progress to date, and urged Cllr Dimitri Batrouni, the council leader, to “ensure that this much-needed investment in the city centre materialises”.

Cllr Batrouni said he had held “honest and robust” discussions with USW’s chancellor and vice-chancellor on the university’s “current status and future” in Newport, but described the sector as being “in real trouble”.

Newport Council leader Dimitri Batrouni
Newport Council leader Dimitri Batrouni

“I think if we’re all being candid with each other, not just in Wales but across England, higher education [and] universities are facing a financial crisis,” said Cllr Batrouni, who understands USW has “no contractual obligation… to commit that money here”. 

“I can also raise those matters directly with them next time I meet them – but I wouldn’t hold our breath on that,” he added.

Cllr Evans said public documents, published around the time the redevelopment of Caerleon Campus was decided, suggested “the university intended to reinvest proceeds into the Newport Knowledge Quarter”.

“Yet again, we appear to have lost out,” he claimed. “Apparently they have spent £3.2 million in Newport but that still leaves a shortfall of £3 million.”

Cllr Evans called that spending a “pittance” when compared “to the £40 million they’ve just spent on a building in Treforest”.

“They promised us money,” he added. “I do think it’s important… we try and get some of this money back or at least buildings here.”

Cllr Batrouni defended the Knowledge Quarter project as “a beacon for this city” and said there were “definitely students there” during his visit to the city-centre campus. 

He also noted several USW investments in Newport, including a “state of the art” research and innovation centre, and a cyber centre “which has won four national awards for cyber excellence, beating all the Russell Group universities”.

“I always want more, I always ask them for more and you know, if I can get more there, I will,” added Cllr Batrouni, with a note of caution that he could not “sit here and promise” anything because the Covid-19 pandemic had “decimated” higher education.

‘World-renowned’

A USW spokesperson said: “We are committed to providing our students, colleagues, and partners with the very best experience at our Newport Campus.

“Building on the fantastic foundations that we have at the campus for our provision and facilities, we have undertaken a multi-million-pound project to enhance our internal spaces for our learners, colleagues and partners, including modern flexible learning and working environments, an enterprise hub and a Hydra suite using world-renowned technology.

“We are continuing to develop our partnerships and connections within the city, and region, so that we offer an inclusive environment for learning, innovation, and professional practice. This includes working with local businesses and community groups, offering access to our spaces and professional support and advice, as well as having strategic partnerships with organisations and businesses across the area.

“As is well documented, universities across Wales and the UK are facing significant financial challenges. We are continuing to prioritise work to grow our student numbers in Newport, whilst also undertaking a comprehensive transformation programme, to ensure our future resilience and so we can continue to deliver for our communities.”


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