ESSENTIAL changes to guarantee the future of high-quality learning and research, or a dangerous step towards a divided two-tier higher education system.

Hampshire’s universities have given a mixed reaction to the news that they are likely to be able to charge students what they like to study.

The publication of the Browne Report yesterday has led to fears that would-be students from poorer backgrounds could be put off degree courses by worries over getting into major debt.

But elsewhere, university bosses worried about finding the cash to keep their institutions running in the face of severe budget cuts are breathing a sigh of relief that they look set to be freed from the shackles of the current system.

Under Lord Browne’s proposals, the current £3,290 per year cap on tuition fees would be scrapped.

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Universities could charge what they like for courses, but would face financial penalties for fees above £6,000, to help cover the cost of lending cash to students.

Graduates would start paying back loans only when they earn £21,000, and outstanding debts would be written off after 30 years.

Professor Don Nutbeam, vice-chancellor of the University of Southampton, said that he welcomed Lord Browne’s “creative proposals that will enable students to make meaningful decisions about the cost and quality of their education”.

He said: “The report recognises the damaging constraints on funding for higher education produced under current arrangements, and recommends radical changes, significantly reducing public support and placing much more of the burden on graduates.”

Prof Nutbeam added that the university had not “actively sought” higher fees, but said that significant cuts in Government funding – expected to come in next week’s comprehensive spending review – mean that they offer a “viable and fair way to secure vital future investment”.

However, Southampton Solent University deputy vice-chancellor Dr Mike Wilkinson said: “As a university that is committed to social justice,we are naturally disappointed that the Browne Report appears to favour greatly increased fees for students.”

He insisted that it is too soon to give a comprehensive response to the plans, but added: “This will almost certainly mean that attendance at any particular university could become based on the ability to pay rather than the ability to learn.”

Professor Joy Carter, vice-chancellor of the University of Winchester, broadly welcomed the report, but added that it contains causes for concern, especially proposals to withdraw funding for teaching in arts, humanities and social sciences subjects.

She said: “We believe strongly that graduates in these subjects make a substantial contribution to the economy, and therefore ensuring Government provision in these subject areas should be deemed a priority area for investment.”

Prof Carter added that removing the tuition fee cap might help improve teaching, but fears that further cuts “might actually leave universities with unsustainable losses that potentially will not be recouped by any proposed increase in tuition fees”.

What the report suggests

■ The cap on tuition fees – currently £3,290 – should be removed.

■ Fees of up to £6,000 would be covered by the Government. Universities to pay levies for financing loans on higher figures.

■ Fees still only paid back when graduates are working and earning over £21,000.

■ Unpaid loans written off after 30 years.

■ Every student entitled to a flat-rate maintenance loan of £3,750.

■ Student numbers to increase by ten per cent over three years, with no restrictions on the numbers universities can recruit.