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.Â
See the grant announcement letter on the HEFCE website here.Â
