Hague pledges cash for universities

Tories say the plans will stop the 'brain drain' to the USA.

Top universities would be given billions of pounds and cut loose from
government control if the Conservatives won the next election, Tory
leader William Hague has revealed.
                                                 
The proposed higher education shake-up is one of about 100 new
policies outlined in the party's "mini-manifesto" to be launched on
Tuesday in which Mr Hague will set out his stall for the next general
election.
                                                 
The document, entitled Believing In Britain, contains proposals on key
topics including Europe and the economy.
                                                 
But the plans to take some universities out of the government's
financial control are among the more radical elements of the package.
                                                 
Mr Hague said the institutions would be eligible for endowments -
possibly as much as £1bn each - which they could invest to generate
funding for the future.
                             
This, he said, would allow British universities to compete with those
in the US for top staff and students.  The money would come from
one-off government revenue such as the cash raised by selling off the
mobile phone licences earlier this year.

The Tory leader said: "It is right that, when we realise the country's
assets, we should reinvest the proceeds in the country's future."

But Higher Education Minister Baroness Blackstone warned that the
policy would cause tuition fees to rise as universities would have to
compete against each other for the endowments and would lose the
guarantee of government funding.
                                                 
She said: "This so-called free university policy would mean a massive
hike in the tuition fees for the middle classes.

"It could mean that many talented youngsters would not be able to go
to university and fees could increase four fold."

Believing In Britain is also expected to set out Mr Hague's vision for
the UK's future in Europe with a pledge to concede no more powers to
Brussels.

Building on their defence of the single currency, the Tories are set
to promise that if elected they will prevent the European Union from
taking any powers that they list as 'reserved' away from the UK.

On the economy, Mr Hague is determined to make the UK "Europe's new
economy capital".

The intensification of campaigning by the Conservatives comes as the
Liberal Democrats prepare to release a similar mini-manifesto on
Wednesday.

E-economy at the heart

The Tory paper will be circulated among party members, who will be
invited to signal their approval in a ballot, the result of which will
be announced to the annual autumn conference.

The paper, which will be launched by the whole shadow cabinet, also
includes proposals to increase funding per pupil in schools by up to
 £540 each.

At the heart of Tory plans on the economy are increased deregulation,
specifically of the e-economy, with possible targets for reform
including the government's new Regulation of Investigatory Powers Act.

Mr Hague is expected to say: "We will make Britain a world centre for
the new economy, because we understand the way new technology is
changing the rules."