Degree of realism

Yet the Cabinet Minister was being realistic when he said that the Government needed to develop a funding model that combines less public support and more private investment from those who benefit most of all from studying at university.

Not only does this principle need to be applied to the higher education sector, but it needs to be replicated across the public sector – the reason the country's finances are in such a parlous state is because

the country spent beyond its means under a New Labour government

pre-occupied, according to Lord Mandelson, with personal feuds rather than constructive policy-making.

As university finances contract, the most likely scenario is for tuition fees to increase – and leave students in even greater debt when they graduate. There's also the issue of whether they should pay more for a diminished service when universities are scaling back their teaching.

Yet, while there is merit to Dr Cable's suggestion that graduates pay premiums on their future earnings so they are not forever mired in debt, there is still the issue of who pays for those university students who, for whatever reason, do not find themselves in full-time employment.

This should not, however, detract from the Minister's sentiments which are entirely laudable. The challenge, as always, is making them work in practice while, at the same time, ensuring that universities improve their standards of excellence.