Government proposals to focus funding in a few elite universities will cause thousands of jobs to be lost without improving the quality of research, according to a report released by Universities UK.

Institutions in the regions of the UK will be hit hardest by the new formula, says the study.

A spokesman for the DfES told ePolitix.com: "The report reinforces the high quality of research in the UK. But, we cannot be complacent. That is because other international competitors like Australia, China and India are making big strategic investments in their best research and if we do not do the same we will slip down the research league.

"Concentration and collaboration are strategically necessary to ensure that we keep our place in the world. Our international standing cannot rest on past glories. We are already producing less Nobel laureates than we were twenty years ago.

"But, concentration will not mean a handful of universities succeeding whilst the rest suffer. Forty-three different institutions across the country will receive more than £5 million each for research and the £20 million the government has shifted from lower to the most highly rated research departments is being more than compensated for by the extra money for universities to support knowledge transfer."

Forum Response: Universities UK

Professor Ivor Crewe, president of Universities UK, said: "This report provides overwhelming evidence that the government's assumptions that further concentration of research funding in the UK would have beneficial effects are misplaced.

"Rather, it shows that further concentration is likely to have a negative impact on the UK's research base. It highlights the critical importance of funding high quality research wherever it is found, across a wide university base.

"This report makes a valuable contribution to the ongoing discussion of how best to support university research in the future and of how to secure the continuing benefits of research for our economy and society."

Forum Response: Standing Conference of Principals

A spokeswoman for SCOP told ePolitix.com: "SCOP is opposed to any further concentration of research funding.

"There is a real danger that the UK will become less research-competitive over time, particularly in new and emerging disciplines, if selectivity is intensified.

"While it may be appropriate to have highly concentrated funding in certain scientific disciplines (as is already the case), excellent research in the arts, humanities and social sciences is found across the higher education sector and does not require greater selectivity or critical mass.

"We must maintain dynamism within research and recognise that research profiles and disciplines can change and develop dramatically."

Forum Response: Council of Heads of Medical Schools

A spokeswoman for CHMS told ePolitix.com: "CHMS would be strongly opposed to any further concentration of research funding and Schools are committed to trying to undertake research which reflects the varying disease pattern across the UK.

"A significant volume of medical research which makes an important contribution to the NHS is undertaken in 4-rated departments which would be threatened by further concentration.

"It is estimated that £21 million has already been lost from 4-rated clinical medical Units of Assessment for 2003-4.

"Much medical research is dependent on the patient base and concentration would serve to break these important links.

"The future of academic medicine and the ability of medical schools to educate doctors for the NHS are dependent on high quality clinical academic staff."