Mandelson's new university labelling system could harm Scottish institutions

Scottish universities could suffer as a result of Peter Mandelson's new plans to label English universities, according to former Universities Scotland head Lord Sutherland.

Lord Mandelson has unveiled his long-term strategy for English universities, including a labelling system for courses as part of an overall strategy to give English students better value for money.

Responding to the plans, Lord Sutherland of Houndwood said: "This will significantly affect Scotland as it will raise the level of funding available in the south. It means their institutions will be able to headhunt quality staff, offering very well-resourced laboratories compared to here.

"The implication is that the best universities in England, which are the top of the class in the world, will have more concentrated resources available to them and that will put extra pressure on other universities."

The system aims to improve information on the quality of courses to prospective students and comes as part of a ten-year strategy to improve English universities.

The labels will include information on teaching times, frequency of tutorials, level of independent work and assessment methods, as well as information on drop-out rates and graduate employment.

The government hopes the new system will treat students as paying customers and improve quality of courses before a general review of university funding begins later in the year.

The plans have come under criticism from the National Union of Students (NUS) who worry that it will shift focus from quality of teaching to improving statistics.

Wes Streeting, NUS president, said: "There is a balance to be struck between transparency and really commodifying higher education. There needs to be very good data included, otherwise universities will offer more hours in huge lecture halls and cramped seminars when fewer hours with smaller groups would be much better. The benefits may force universities to drive up quality but it is riddled with risk."

Fears have also been raised that the emphasis on better value for money comes as part of an overall strategy to introduce higher fees. Peter Mandelson implied universities might be able to charge higher fees if quality is improved.

A consultation has still to be launched to decide how the labelling system will work but there is speculation of either a website or universities publishing information in the prospectuses.

The government also hopes to introduce more involvement from businesses in universities and new admission systems to help those from poorer backgrounds gain admission.