The Vice-chancellor of Sussex University Professor Michael Farthing, has warned that student fees may have to rise to £7,500 a year in order to maintain standards.
The claim came as lecturers took part across the country yesterday in a one-day strike over job cuts.
The University of Cumbria, which is nearly £30m in debt and on the HEFCE watch-list of vulnerable universities, received a cash advance from HEFCE so that it could pay staff.
Commenting on the release of performance indicators covering widening participation and non-continuation rates, Professor Steve Smith, President of Universities UK, said: “Once again the main indicators show a positive