Labour tightens central grip

Prime minister Tony Blair and his ministers have spelled out the shape of things to come in higher education if Labour wins the general election.

A clutch of policies and initiatives launched this week and last indicates radical change over at least the next five years. Each involves increased central government control:

• Top-up fees are ruled out for the lifetime of the next parliament
• Cash will be ring-fenced to encourage elite universities to take more state-school students
• New university-based regional innovation centres will be set up
• More bursaries will be offered for students and incentives for trainee teachers
• An extra £90 million from the Department of Trade and Industry for technology transfer.

Underpinning the plans is the upheaval promised for the comprehensive school system. The aim is to raise the exam performance and aspirations of all children to swell the ranks of those going to college and university.

In his speech last Thursday, Mr Blair laid bare the government's determination to tackle social elitism in higher education through direct intervention.

Mr Blair said: "It cannot be achieved by the government standing back and allowing a Darwinian survival of the fittest, and pretending it is meritocracy. It requires active government."

It is a stark warning to a university sector that has seen hopes dashed of increasing institutional autonomy by raising income from undergraduate tuition fees differentiated by course and institution.

Education secretary David Blunkett has ruled out top-up fees for at least the next parliament.

A spokesman for the Russell Group, representing the country's top research institutions, said: "Our concern remains to ensure that there is enough funding available so that Britain's top universities can remain world leaders in teaching and research."

Many Russell Group universities had privately hoped to reduce their reliance on state funding for teaching by raising fee income. They are waiting for the outcome of the Universities UK review of funding options, including differential fees. The review has been partly pre-empted by Mr Blunkett's fees announcement.

Maxwell Irvine, vice-chancellor of Birmingham University, said: "If (Mr Blunkett) is saying that universities can survive for another five years without an additional funding stream, then I think he is in for a rough ride."

David Greenaway, pro vice- chancellor of Nottingham University and co-author of a Russell Group-commissioned report recommending the introduction of top-up fees, said: "I think it's a mistake, given the absence of alternatives from government. It has become apparent that there is a need for another income stream, and I think more vice-chancellors have become persuaded that fees could provide that."

Top research institutions have also found themselves shackled to the government's widening participation policy. About 25 universities that recruit less than 80 per cent of their undergraduates from state schools will be given £18 million over the next three years to widen participation.

Elite universities had complained that they had no economic incentive to widen participation. Now they must prove improved performance in state-school recruitment.

Sir Richard Sykes, rector of Imperial College, London, said: "The pool of students taking the requisite science A levels in state schools continues to decline every year. This makes it almost impossible for us to increase the proportion of students taken from state schools and maintain standards. It is pointless asking the universities to do more - the main problem is elsewhere."

The additional cash for elite universities has angered many in the post-1992 sector. Vice-chancellor members of the Coalition of Modern Universities say extra cash should go to new universities in recognition of their far greater success in widening participation.

This is being considered by ministers. Following a recommendation by the education select committee, they are looking at doubling the average premium of 5 per cent on core teaching funding for each student from a poor area recruited to university.

Leading research universities are also to be tied to the government's regional agenda. Trade and industry secretary Stephen Byers this week announced 20 innovation centres based in world-class universities and working with business. Mr Byers said: "The role of the government shouldn't be one of dictating to business, but neither should it stand to one side."

Mr Blunkett announced 18 college-based technology institutes. He said: "If we can get colleges working with universities and business, then we can do so much more than at an individual level."