The group say that they are aware that tough times are ahead but warn that the government should not underestimate the role universities play in the economy. The warning follows an announcement last week by universities minister David Willetts that an overhaul was needed across the sector.

UUK also believe that the government and general public are guilty of underestimating how important universities are to the economy. In a survey commissioned last year, one fifth put the economic contribution of universities at £100 million and a further 10% said they contributed nothing at all. The reality, however, is quite different with universities adding about £31 billion each year directly and £59 billion indirectly to the country’s economy.

Nicola Dandridge, chief executive of UUK said: “We are major employers. In some communities, universities are the main employers – especially in disadvantaged areas. People don’t realise that.”

UUK also feel that the public have the wrong opinion of universities, adding that over two million people in the UK attend universities and that they are no longer just for the privileged few.

With over £600 million worth of cuts planned for the next few years there are fears that this could seriously damage the potential contribution of universities to economic recovery. Universities play a key role in terms of research, especially in the fields of both technology and pharmaceutical research and vice chancellors feel that this crucial role could be damaged by the impending cuts.

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