The government is to cut university funding in England by a total of £398m for 2010-11 compared with this year, Business Secretary Lord Mandelson said.

In a letter to the Higher Education Funding Council For England (HEFCE), he also asks universities to protect quality and access to higher education.

His letter confirms efficiency savings of £180m and £83m - and makes a further £135m budget reduction.

See the full story on the BBC website here. 

See the grant announcement letter on the HEFCE website here.