London School of Economics
On the 4th of August 1894, a breakfast meeting took place between Sidney Webb, Beatrice Webb, Louis Flood and George Bernard Shaw. They conceived the idea of establishing a new school dedicated to social sciences. The proposal was accepted by trustees in February 1895. LSE held its first classes that same year in rooms at 9 John Street, Adelphi, in the City of Westminster. A bequest of £20,000 from Henry Hunt Hutchinson funded the initial establishment. Five trustees managed the funds: Sidney Webb, Edward Pease, Constance Hutchinson, W. S. de Mattos and William Clark. The school joined the federal University of London in 1900. It offered its first degree programmes under that university's auspices in 1901. These were BSc (Econ) and DSc (Econ), the first university degrees dedicated to social sciences. In 1920, King George V laid the foundation stone for the Old Building on Houghton Street. The building opened in 1922. School arms including motto and beaver mascot were adopted in February 1922. The Latin motto rerum cognoscere causas means "to know the causes of things". Professor Edwin Cannan suggested it. The beaver mascot represents foresight, constructiveness and industrious behaviour.
The economic debate between LSE and Cambridge during the 1930s became a well-known chapter in academic circles. LSE's Edwin Cannan argued with Cambridge's Alfred Marshall about whether economics should be considered an organic whole. Marshall disapproved of LSE's separate listing of pure theory and its insistence on economic history. The dispute also concerned the economist's role as either detached expert or practical adviser. During the Great Depression, economists at both universities argued over solutions. John Maynard Keynes from Cambridge put forward theories now known as Keynesian economics. He advocated active state participation and public sector involvement. Friedrich Hayek and Lionel Robbins followed the Austrian School. They emphasised free trade and opposed state involvement. Starting off as disagreement over demand management versus deflation, the debate eventually embraced wider concepts of macroeconomics. In 1974, Friedrich Hayek won the Nobel Memorial Prize in Economic Sciences. He had lectured at LSE from 1931 to 1950. Four Nobel Prizes were awarded to LSE-associated economists in the 1970s alone. John Hicks won in 1972, James Meade in 1977, and Arthur Lewis in 1979. W. Arthur Lewis was the only black person to ever win the prize.
Since 1990, the London School of Economics has educated 24 prime ministers or presidents. This is the second highest number of any university in the United Kingdom. Over 40 world leaders have taught or studied at LSE since its establishment in 1895. The school educated two presidents of the European Commission: Romano Prodi and Ursula von der Leyen. Billionaire investor George Soros attended the institution. B. R. Ambedkar served as chief architect of India's constitution. David Attenborough studied there as a British naturalist. Rachel Reeves became chancellor of the United Kingdom. David Rockefeller chaired Chase Bank. Ruth Porat serves as chief investment officer of Google. Mikie Sherrill governed New Jersey. Yang Jiechi was foreign Minister of China. Stelios Haji-Ioannou founded EasyJet. Tony Fernandes co-founded AirAsia. LSE alumni and faculty have served as presidents of the International Court of Justice. They acted as economic advisors to various British prime ministers and American presidents. Some became chief economists of the World Bank or International Monetary Fund. Others headed central banks in countries including the United States, India, Australia, Israel, Sri Lanka, Canada and Thailand. As of 2025, LSE is affiliated with 21 Nobel laureates.
Since 1902, LSE has been based at Clare Market and Houghton Street. The campus now occupies an almost continuous group of around 30 buildings between Kingsway and Aldwych. In 1920, King George V laid the foundation of the Old Building. It opened in 1922. The school owns 11 student halls of residence across London. These include Bankside House which accommodated 617 students when it opened in 1996. High Holborn Residence opened in 1995 and houses 447 students. In 2003, LSE purchased the former Public Trustee building at 24 Kingsway. Sir Nicholas Grimshaw redesigned it into an ultra-modern educational facility costing over £45 million. This increased campus size by approximately 10 percent. The New Academic Building opened for teaching in October 2008. Her Majesty the Queen officially opened it on the 5th of November 2008. The Saw Swee Hock Student Centre opened in January 2014 following an architectural design competition managed by RIBA Competitions. Designed by O'Donnell & Tuomey, it achieved a BREEAM 'Outstanding' rating. The Centre Building situated opposite the British Library opened in June 2019. Rogers Stirk Harbour and Partners designed this 13-storey structure. It includes 14 seminar rooms seating between 20 and 60 people. There are 234 study spaces plus a 200-seater auditorium. Three lecture theatres complete the facility. Planning permission was granted for redevelopment of the Nuffield Building at 35 Lincoln's Inn Fields in 2017. Demolition work started in 2024 with expected completion by summer 2027.
In February 2011, LSE faced consequences from matriculating one of Muammar Gaddafi's sons while accepting a £1.5m donation from his family. Director Howard Davies resigned over allegations about institutional links to the Libyan regime. An external inquiry conducted by former lord chief justice Harry Woolf examined the relationship. In 2013, BBC Panorama featured North Korea in a documentary filmed inside the repressive regime. Undercover journalists attached to a trip by the LSE's Grimshaw Club participated. High-level North Korean officials sanctioned the trip. A BBC journalist posed as part of LSE during filming. The North Korean government made hostile threats towards students and LSE after publicity emerged. This forced an apology from the BBC. In August 2015, it was revealed that the university received approximately £40,000 for a "glowing report" on Camila Batmanghelidjh's charity Kids Company. The study proved good value but remained undisclosed as funded by the charity itself. In 2023, LSE formally cut ties with LGBT charity Stonewall. The Student Union sharply criticized this decision as transphobic. Gender-critical activists praised it as conducive to freedom of speech. Emails between senior staff described protesting students wearing keffiyeh as being "dressed as terrorists".
In the financial year ending the 31st of July 2024, LSE had total income of £525.6 million. Expenditure reached £344.4 million. Key sources included £316.4 million from tuition fees and education contracts. Research grants contributed £41.4 million while donations and endowments added £49.3 million. Endowments stood at £255.5 million at year end. Total net assets amounted to £1.009 billion. The Times Higher Education Pay Survey 2017 revealed LSE professors were highest paid in UK among larger institutions. Average incomes reached £103,886 for professors and £65,177 for academics. Analysis found LSE came third for fundraising in 2023, 24 among Universities UK members. It raised £49.3 million in donations and new endowments behind only Oxford and Cambridge. In 2024, Times Higher Education World University Rankings placed LSE 8th globally for social sciences. Business and economics ranked 11th while law ranked 14th. Arts and humanities ranked 35th overall at 46th position. Wealth-X and UBS's "Billionaire Census" in 2014 listed LSE as 10th school producing most billionaire alumni. This made it the only UK university on that list. Data released by Department for Education in 2018 rated LSE best university for boosting graduate earnings. Male graduates saw 47.2% increase in earnings compared to average. Female graduates experienced 38.2% increase.
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Common questions
When was the London School of Economics founded and where did it hold its first classes?
The London School of Economics held its first classes in 1894 at rooms located at 9 John Street, Adelphi, in the City of Westminster. The proposal to establish the school was accepted by trustees in February 1895 following a breakfast meeting between Sidney Webb, Beatrice Webb, Louis Flood and George Bernard Shaw on the 4th of August 1894.
Who are some notable alumni and faculty members associated with the London School of Economics?
Notable figures include Nobel laureates Friedrich Hayek who lectured from 1931 to 1950 and W. Arthur Lewis who won the prize in 1979. The institution has educated 24 prime ministers or presidents since 1990 including David Attenborough and B. R. Ambedkar while alumni like George Soros and Tony Fernandes have become billionaires.
Where is the main campus of the London School of Economics located today?
Since 1902 the London School of Economics has been based at Clare Market and Houghton Street. The current campus occupies an almost continuous group of around 30 buildings situated between Kingsway and Aldwych.
What controversies involving donations and political relationships did the London School of Economics face?
In February 2011 the London School of Economics faced consequences for accepting a £1.5m donation from Muammar Gaddafi's family which led to Director Howard Davies resigning over allegations about institutional links to the Libyan regime. In 2013 BBC Panorama featured North Korea in a documentary filmed inside the repressive regime after undercover journalists attached to a trip by the LSE's Grimshaw Club participated.
How much income and expenditure did the London School of Economics report for the financial year ending July 2024?
The London School of Economics had total income of £525.6 million and expenditure reached £444.4 million for the financial year ending the 31st of July 2024. Key sources included £316.4 million from tuition fees and education contracts while research grants contributed £41.4 million and donations added £49.3 million.