universities take a £2.9bn blow

Universities felt the full force of the spending cuts as it was announced their teaching budgets would be slashed by £2.9bn.

Many institutions fear they may have to close.

The Treasury said the overall teaching budget for higher education, which excluded research funding, would be cut to 4.2bn from 7.1bn over the next four years – a cut of 2.9bn.

A 150m National Scholarship Fund for poorer students will be established.

Mr Osborne said: “Better-off graduates will have to pay more.”