Treasury fights with No 10 over options to reduce student loan burden

Vice-chancellors in England say they are bracing for steep cuts in funding to be announced later this year, as the Treasury and No 10 battle over proposals to lower the government’s exposure to unpaid student loans, which are growing at about £10bn a year.

One vice-chancellor said the comprehensive spending review expected in the autumn was “looking horrific” for universities, with Downing Street and the Treasury competing over what to include in the government’s policy paper on funding, which is due to be published within the next two months.