The University of Sussex will create £1 billion of spending a year by 2018, a report has predicted.

The university is already estimated to create £600 million of spending each year in the UK and supports 3,700 jobs.

The new report by analysts Oxford Economics states that the money generated by the university will increase over the next five years.

It states that Brighton and Hove and Lewes benefit by £197 million, with that figure projected to rise by 45% to £285 million by 2018.

More than 10,000 of 13,830 Sussex students live in the area, with a quarter staying on after graduation.

And the university-commissioned report states that nearly three-quarters of its 2,200-strong workforce live in Brighton and Hove or Lewes.

The university’s masterplan will allow for more on-site accommodation, meaning up to 40 per cent of students can be housed on-campus for the first time.

The vice-chancellor, Professor Michael Farthing, said: “Exciting times lie ahead for the university, for the city of Brighton and Hove and the wider local economy.

“Sussex is expanding to ensure its place in the world of global education and research. At the same time, new technologies and innovation are opening up great opportunities in vibrant cities such as Brighton and Hove that can draw on the expertise that universities can provide. Students love Brighton and many of them stay to enrich the city in so many ways. We want to see that relationship continue to evolve and prosper as the university grows.”

Facilities and expertise such as the Sussex Innovation Centre for newhi-tech businesses, and the University Conference Centre, which attracts thousands of visitors to Brighton and Hove, were cited as other boosts to the economy.

Research in biomedical research, astrophysics, social sciences and cultural partnerships raise the profile of Brighton and Hove and attract more visitors.

During 2012-13 the university hosted 230 events for schools and colleges, while students provided more than 4,500 hours of tutoring and mentoring in schools.