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Universities across the UK could soon be forced to cut the number of UK students they take, increase class sizes and axe staff, vice-chancellors warn. They are calling on the government to intervene to stave off a crisis, as the real value of tuition fees plummets.

The prestigious Russell Group of universities says institutions are making a loss of £1,750 a year teaching each home student because tuition fees have remained almost static for 10 years and have not kept pace with inflation. On average, universities will be losing £4,000 a year on every UK undergraduate by 2024, the group says. Experts say some may end up pulling out of teaching UK students, focusing entirely on international students and postgraduates.

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