Aston University chiefs have defended their decision to include possible top-up fees in their budget from 2002-03.
Plans to raise an extra £1.73 million by 2004-05 by charging about half of Aston's undergraduates an additional £1,000 fee have been built into the university's five-year plan, submitted last year to the Higher Education Funding Council for England.
David Packham, Aston's secretary-registrar, said that while the university did not want to introduce top-up fees, it had "signalled to the funding council that, like many universities, we will be in a position to have to consider that option if there is no funding increase".
He said the university had received no response from the funding council. He added, "we believe a number of other universities have done the same thing".
But a funding council spokesman told The THES that the council was aware of only one other university that had included the prospect of top-up fees in the commentary of its five-year plan.
Mr Packham said Aston had explored a variety of options for increasing its non-Hefce funding, but found "there are not many other sources to look at".
Not many universities were likely to be in a better position, he added.
News of the plans follows comments from Michael Wright, Aston's vice-chancellor, who said in an interview with The THES in November that top-up fees would have to be built into plans for a proposed merger between Aston and Birmingham universities.
A report circulated to Aston staff and students, who are being consulted on the possible merger, does not mention top-up fees. But it says that Aston faces crucial funding decisions if it decides to remain independent.
It says: "Given the size of the university and the prospect that funding via Hefce from the public purse will continue to fall short in real terms of the increases needed to support the teaching and research activities of the university at the levels deemed necessary, the university's plan for the next five years will be characterised particularly by the initiatives proposed to raise income from non-Hefce sources."
Student union leaders have condemned the plans. Nick Parrott, area convenor for NUS West Midlands, said: "If a government body is approving university budgets including top-up fees, then either they are grossly overstepping their powers or this government is lying to us. If not, then the university is creating a self-fulfilling prophecy by basing its future solvency on the introduction of top-up fees. It is an irresponsible way to run an institution."
- Staff voice fear over Midlands merger
Academics at Aston University have expressed strong reservations over proposals to create a new "mega-institution" through a merger with Birmingham University.
Feelings are running so high that the university has decided to hold up the talks to consult staff and students on whether to go ahead with the plan.
A report on the merger talks circulated at Aston highlights "deep concerns" voiced by the university's council members. They are worried that the appointment of a new vice-chancellor at Birmingham, announced last week as Michael Stirling, from Brunel University, along with other senior management changes, could lead to "planning blight" because of an impending merger and "the attrition of academic and other staff from Aston, as well as difficulties in recruiting and retaining new staff and students".
The university's senate, although recommending the merger proposals should be "developed further", also noted that "the ongoing discussions about the possible integration of Aston and Birmingham universities were causing some concern among potential and existing staff, and had possibly led to some wastage".
A report on the senate's meeting suggests that in the short term, it is unlikely an integrated university would be able to attract the same number of applications for popular courses as is enjoyed separately by the universities.
It adds that "this could result in a diminution of entry standards if current recruitment levels are... maintained".
Aston has launched a consultation with staff and students on whether to continue with the merger talks, or abandon the idea.
Aston members of the joint strategy group set up by the universities have set a deadline of February 12 for responses, which will be considered by the university's council on February 21.
David Packham, Aston's secretary-registrar, said: "We have deliberately not given a steer on this. We have presented staff and students with all the information, so they can tell us what they think."
Henry Miller, president of Aston Association of University Teachers, said there was "cautious acceptance" among staff that the merger would go ahead.
But he added: "People are sceptical about the argument that proposals have been put together purely on academic grounds. We do not necessarily believe there are no financial reasons."