Cable vows cap on university tuition fees

Mr Cable said the Government had not yet finalised its plans for higher education funding but added: "I don't think there's any prospect of having unlimited fees – that simply isn't going to arise."

A review by Lord Browne recommended that universities in England should be free to set their own annual fees but should be hit with a levy on fees over 6,000.

Mr Cable told Sky News's Sunday Live that Universities Minister David Willetts had already "made it very clear that that clawback mechanism was not attractive".

The Business Secretary said: "We're not ruling things out. We're looking at this very carefully, what Browne had to say – but I think that particular approach was one we're not going to pursue."

Deputy Prime Minister Nick Clegg also suggested on BBC1's Andrew Marr Show he was opposed to the removal of the tuition fees cap.

He said: "I am uneasy about the idea that you, in theory, have unlimited fees. So we are looking at something which would be more restrained."

Mr Cable told the Commons earlier this month that Ministers were considering a new tuition fee level of 7,000 per year – more than double the current 3,290.

He told Sky News the Government accepted the basic principles of Lord Browne's report, namely that "high-earning graduates will be paying more later in their life, but in a progressive way relating to their ability to pay".

Ministers were also considering how to deal with students who gain very well paid jobs and are able to pay off their student loans quickly, he said.