THE University of Bradford's vice-chancellor has raised concerns about the current funding model for higher education - saying it is "not working".

Professor Shirley Congdon made the comment after reports suggested Universities UK - which represents 141 institutions, including the University of Bradford - was drawing up proposals calling for higher tuition fees and more Government investment for the sector.

Education Secretary Bridget Phillipson described stabilising finances in higher education as a priority.

Prof Congdon said: "Tuition fees for home undergraduate courses have not risen substantively since 2012 and no longer cover the cost of delivery. 

"It is no secret that in recent years many universities have sought to supplement the cost of these courses by increasing their intake of overseas students.

"But changes to the graduate visa route introduced by the previous Government led to predictable falls in income for many universities.

"There is an understanding shared by the Government that the funding model for UK undergraduates requires reform, with the Education Secretary stating there are 'no easy answers or quick fixes'. 

"Only 16 per cent of a university degree is paid for by the Government, yet according to research undertaken by Universities UK, every £1 of that generates £14 in graduate economic activity. 

"The current funding model is not working for students, universities or taxpayers."

Prof Congdon said universities were "integral to the economic resilience of cities and towns" but were being "forced to consider making tough decisions due to a lack of funding".

Earlier this year, the University of Bradford said it planned to make £10 million of savings in the next year.

It also launched a mutually agreed resignation scheme (MARS).

MARS allows employees, in agreement with their employer, to choose to give up their job in return for a severance payment.

Prof Congdon added: "Like any organisation with a responsibility to remain economically viable, we will continue to review our expenditure, making savings where we can, including finding more efficient ways of working and reviewing programmes that do not make an adequate financial contribution, and by looking at ways to diversify our student intake."

A spokesperson for the Department for Education said it had "inherited a challenging set of circumstances in higher education", adding: “The Education Secretary has taken the crucial first step of refocusing the role of the Office for Students on key areas, such as monitoring financial sustainability, to ensure universities can secure their financial health in the longer term."