Roger Lewis: Universities aren't just about degrees, they are a vital resource for the nation

As higher education faces the most brutal funding cuts in its history, there is a very real danger that this vital input could be seriously damaged.

Leaks in the media ahead of the Comprehensive Spending Review and the Review of Higher Education Funding and Student Finance, led by Lord Browne, suggest that higher education will suffer at least a 25 per cent funding cut, with student fees rising to as much as 10,000 a year and popular areas like arts and humanities receiving no public funding at all.

As the debate about the future funding of higher education gathers pace over the coming weeks and months, it is important to recognise that

going to university is about so much more than simply studying for a degree.

Yes, it is true that graduates can expect to earn on average about a quarter more than young people who leave school after A-levels. But higher education also brings together students from many backgrounds, strengthening their understanding of different cultures and beliefs; it enriches lives, leads to meaningful and fulfilling careers and creates legacies for future generations.

I think that the true cost of higher education is not widely understood and some of the exaggerated figures being banded around are unhelpful. To put the true facts into context, consider that higher education costs the nation 7.2bn a year, while just one month's interest payments on the national debt are 16bn. So, as a percentage of national spend, it is small yet the impact and long-term consequences of significantly reducing this funding will be immense.

Yorkshire's higher education institutions boost the regional economy to the tune of 3.68bn and play a critical role in generating jobs, creating innovation and driving enterprise.

Our universities are crucial to the future prosperity and competitiveness of the region; they work with the private and public sectors to create new markets and tackle global challenges through knowledge, expertise and research.

The leaks suggest there will be a shift of funding from government to individual student (often crudely called "customer", but in reality the relationship students have to their education is not the same as going into a shop to buy a chocolate bar or a shirt). As students have to pay more, they will naturally demand more from the education they receive and the environment in which they receive it, for example the libraries and IT services.

This will of course have a positive impact – there is always space for universities to improve what they do. But the danger is that students will increasingly act in an immediately materialistic and self-interested way. They will want the best and quickest payback for their money, in terms of a "good job with good money". In other words, education could be driven just by economic payback.

But education is about more than economic payback. Universities have also been concerned with benefiting society and communities. Hence the access they give to their sporting and cultural facilities: free public lectures and concerts, museums, art galleries, work with local schools and civic organisations. In a sense, the State has been "buying" these benefits for all of us, by its contributions to university funding. Cutting back this funding invites universities to respond by cutting these public goods. Universities in Yorkshire offer an unequalled choice of subjects which is one of the reasons the region has such an excellent reputation for world class research and why we attract top quality students.

However, there is a very real danger that the balance of subjects will change with an increasing focus on science, technology, engineering and maths. This will have a particular impact on home-based students, narrowing the choices available to people who are not able to travel outside their region to study at university.

So much has been invested in recent years to widen access and improve participation in higher education to create opportunities for everyone who can benefit from it, regardless of their starting point in life. Widening participation is vital for social justice and economic competitiveness and for creating equality of opportunity for under-represented groups.

The coalition manifesto cites "the need to attract a higher proportion of students from disadvantaged backgrounds" but how, against a backdrop of increased fees and reduced provision? The cuts will not only endanger the quality of higher education and impact on the lives and aspirations of future generations but will directly compromise income and job creation for Yorkshire and its many communities.

Professor Roger Lewis is the chief executive officer of Yorkshire Universities.