Tories 'plan to privatise universities'

The Conservatives were today reported to be planning to privatise Britain's universities as a long-term alternative to tuition fees.

A policy review ordered by Michael Howard will aim for "all universities to be largely financially independent and some completely financially independent over 15 to 20 years," according to one shadow minister.

The move, according to some Tories, would offer a means for universities to organise their own funds, through endowments and business backing. The Government would "buy" courses and research in "socially desirable areas" such as teaching and medicine.

Tony Blair yesterday accused the Tory leader of opportunistic opposition to top-up fees with no policy of his own. But the news could serve as ammunition for the Government as it continues its squeeze on Labour rebels ahead of the critical vote on the issue next Tuesday.

Mr Blair has already warned the rebels that they must choose between his government's "progressive policies" and a Tory Party which would leave poorer students out in the cold.

The review, headed by shadow education secretary Tim Yeo with education spokesman Tim Collins, is expected to produce its "broad vision" by the end of the year. Mr Collins said: "We are working in accordance with two principles.

"The first is that we want to see greater not lesser independence for universities over time. And the second is we want to make sure that access to higher education is on the basis of ability, not ability to pay."