Leading universities are hoping to win the freedom to impose big increases in what they charge students for tuition after a review of fees that began yesterday.

The review, which is not expected to report until after the election, is being led by the former BP chief executive Lord Browne of Madingley, who has said in the past that a fourfold increase would not be unreasonable.

Vice-chancellors and other academics were careful not to put a figure on the maximum that they will be allowed to levy on students, saying that the independent review should consider evidence first. Top universities made clear that they were hoping for the freedom to raise fees substantially.

The Russell Group, representing research-based universities, called the current ceiling unviable. “Our leading institutions cannot continue to be internationally competitive, provide a first-rate teaching experience and offer generous support to disadvantaged students without access to increased funding,” Wendy Piatt, the group’s director-general, said.

Steve Smith, president of Universities UK, said that universities “must receive sufficient funding to remain world class and any changes to the fee regime must take account of the implications for widening participation”.

The choice of Lord Browne to chair the review appeared to be another indication that leading universities in particular would benefit from the new fees regime. In 2002 he called for funding to be increased “perhaps by a factor of four”, although this was before variable fees were introduced.

He also urged a greater proportion of funding to be allocated to research, and said that the quality of teaching should be enhanced.

Lord Browne’s appointment was welcomed by the CBI, which published a report two months ago saying that vice-chancellors believed that maximum fees of £5,000 a year would not deter students from applying.

He and the six other members of the review announced by Lord Mandelson, the Business Secretary, will have a broad remit to analyse the challenges facing higher education and their implications for student financing. The inquiry will not report until autumn next year, longer than the original target date of next summer. The terms were agreed between Lord Mandelson and the Conservatives, who have said that they will not be bound by its findings if they win office but want a thorough inquiry.

The review’s scope will include those who study part-time. These comprise 43 per cent of students but they are not able to apply for student loans and must pay tuition costs in advance.

Stephen Williams, the Liberal Democrat universities spokesman, said: “This review is nothing but a conspiracy between Labour and the Tories designed to keep plans to hike up tuition fees off the agenda until after the general election.”

Professor Les Ebdon, chairman of million+, which represents newer universities, said that the timing of the review should not stifle debate on funding. “Political parties cannot hide behind this fees review,” he said.

Wes Streeting, president of the National Union of Students, said: “Members of the review should be in no doubt about the scale of public opposition to a hike in fees and the level of student anger.”

e-Poll: SHould the Government raise tuition fees?

Panel members:

Lord Browne of Madingley, former chief executive of BP

Sir Michael Barber, former chief adviser to David Blunkett

Diane Coyle, author and economist

Professor David Eastwood, Vice-Chancellor of Birmingham University

Julia King, researcher

Peter Sands, CEO of Standard Chartered

Rajay Naik, a youth worker

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