UNIVERSITIES generate almost £100 billion annually for the UK economy and support nearly one million jobs, according to a report.

University leaders said the study showed the “huge and increasingly significant” impact higher education has in terms of economic value.

The study, published by vice-chancellors’ group Universities UK (UUK), found that in 2014-15 UK institutions, along with their international students and visitors, generated £95 billion.

This ranges from funds generated by links with businesses and research to money spent by staff and students in the local area.

The figure accounts for 2.9 per cent of all economic activity generated in the UK in 2014-15, which means about £1 in every £34 of UK GDP can be attributed to the activities of universities and their international students’ and visitors’ expenditure.

In addition, more than 940,000 UK jobs are supported. This includes local workers such as cleaners, taxi drivers and construction workers.

The report says: “Universities employ thousands of staff throughout the country and through their direct activities they generate and deliver taxes to the Exchequer.

“But on top of this, they also have an important part to play in supporting a wide range of industries. Their supply chains stretch far and wide supporting GDP and jobs, and in the wider consumer economy, the presence of universities is strongly felt as and employees spend money on retail, accommodation, leisure and transport, as do international students and their visitors.”

UUK president Professor Janet Beer said: “This report is a timely reminder to policymakers of the increasing economic, social and cultural impact of universities on their local communities.