Universities and colleges are worth £35 billion a year to the UK economy in terms of jobs, output and export earnings, shows a new report published today.

Commissioned by Universities UK from the University of Strathclyde, the report details the size of the sector, its sources of income, the employment it creates, and the export earnings it attracts.

Forum Response; Universities UK

Diana Warwick, chief executive of Universities UK, told ePolitix.com: "This report highlights that higher education is key to the economic health of the nation, and has a huge and positive impact on the UK's local, regional and national economies.

"As shown by 'Investing for success', Universities UK's submission to the spending review, the return on investment in HE is clear, in hard economic facts as well as wider social benefits. We have argued a strong case for additional funding, and now look to the government to deliver."

Forum Response: Association of University Teachers

Sally Hunt, general secretary of the AUT, told ePolitix.com: "This valuable report confirms the major positive impact that universities and their staff have on the UK economy.

"We have long been saying to government that the return they receive, pound for pound, on public investment in higher education is higher than in any other part of the public sector. Investing in higher education makes sense, economically, socially and politically."