University chiefs want cash from fees

University leaders yesterday stepped up pressure on the government to ensure money from planned tuition fees is fed back into higher education.

At a conference on the impact of these fees, sponsored by The Independent, vice-chancellors warned of a potentially "black scenario", including lowering of academic standards, if no more money was made available.

However, their call for more detail of government spending plans was met with a plea for patience from Dr Kim Howells, minister for lifelong learning at the Department for Education and Employment.

Amid rumours of growing behind-the-scenes tensions between the DFEE and the Treasury over the destination of fees cash, Dr Howells insisted his department was "sensitive to the messages we are getting" and would clarify its plans for university funding as soon as possible.

The government announced in July its plans to introduce tuition fees, repayable after graduation, for students starting university from October next year, and to abolish grants for living costs. The proposals, supported by vice-chancellors, followed recommendations made in the Dearing Committee's report on the future of higher education, which also recommended tuition fees.

However, the report made clear that money gained should be fed into university and college coffers, rather than siphoned off for other uses ,and stressed the need to address short-term problems of higher education funding.

Professor Martin Harris, chairman of the Committee of Vice-Chancellors and Principals, which organised the conference, told delegates: "We expect the new income stream generated by tuition fees will go back into higher education (as Dearing said it should), and we expect government will address our short-term funding crisis (as Dearing said it should)." Without extra funds, universities would be in no position to fulfil other Dearing recommendations including the expansion of higher education and improving access for less well-off students.

Universities face a funding shortfall of pounds 350m in 1998 to 1999 and pounds 565m in 1999-2000 under spending plans set down by the previous government.

Professor Sir Stewart Sutherland, Edinburgh University vice-chancellors said: "My worry about Dearing is there are enough corners there for politicians to hide in and in the process come up with a trump solution that says we want more growth and more quality...but we are a bit short of cash this year, next year and the year after."

Professor Norman Taylor, director of the Surrey Institute of Art and Design, warned of a "black scenario of no new money but all the costs of implementing Dearing still weighing heavily on the agenda".

University leaders are also urging the government to heed the advice of the Dearing Committee and change accounting rules to ensure student loans no longer count as debt on the nation's balance sheet.