Universities have asked the government for a multi-billion pound investment in the sector, despite the expected imposition of higher tuition fees.

Forum Response: Campaigning for Mainstream Universities

Colin Matheson, CMU chief executive: "Campaigning for Mainstream Universities, welcomed the call by UUK today for increased funding for English universities.

"After 20 years of neglect of the university sector it is vital that sufficient funds be provided to enable our universities to maintain their worldwide reputation for excellence and to allow the newer universities to develop to their full potential.

"The government should not think that increased student contributions will solve the problem.

"The funding gap is simply too large for that to be the solution. Also the income from fees will not come on stream until 2006 and not fully until 2008. Universities are desperate for funds now. University staff of all types are significantly underpaid and the vote by the AUT for strike action reflects the frustration of highly qualified staff at the low level of their salaries.

"Most importantly it is vital that funds be provided to ensure that all students get the best possible education to prepare them and the country for the challenges of the global economy.

"Whilst we strongly support the government's target of 50 per cent of young people going into higher education, that expansion comes at a real cost, that cost must be met. The UK's reputation for the highest quality education also brings significant economic benefits to the country from the many thousands of full fee paying international students, however, that income could be put at risk if the recourses to maintain standards are not found."

Forum Response: Universities UK

Baroness Warwick, chief executive of Universities UK, said: "Universities UK said the income from top-up fees would not on its own be enough to rectify under-investment.

"Universities UK supports the government's proposals for a graduate contribution scheme but we have never claimed it will meet our funding gap - no single source of income will do that.

"Closing that gap and putting our universities on a sound financial footing can only be achieved by a combination of all the available sources of funding - whether from the public purse, from business, from developing endowments or from tuition fees."