Further education: Campus cash cuts 'kick in the teeth'

The reduction comes into effect before the introduction of higher tuition fees, which are intended to offset the loss of central government funding for universities from 2012/13. In a letter to the Higher Education Funding Council for England, Business Secretary Vince Cable said that total funding from loans and HEFCE grants will fall from 9.819bn to 9.233bn in 2011/12. That figure will rise to 9.412bn in 2012/13.

Mr Cable insisted that universities continued to receive "significant public funding".

But the University and College Union's general secretary Sally Hunt said: "The coalition's Christmas message to the sector is funding cuts, higher fees, fewer university places, a pay freeze and attacks on staff pensions.

"After weeks of attacks on students and universities through budget cuts and increased tuition fees, the coalition has delivered a real Christmas kick in the teeth to the sector."