Despite record applications, government cuts planned place numbers at universities

There will be 10,000 fewer university places this autumn than were promised under Labour, it was revealed today, despite record applications.

The previous government pledged funding for 20,000 more places on degree courses compared to last year, to cope with a 16.5% hike in demand.

But today, the new coalition government said only 10,000 extra places would be available because of deep cuts to public spending.

The extra places that have been made available will be shared between 8,000 full-time undergraduate places and 2,000 part-time places.

The Department for Business, Innovation and Skills, which has universities within its remit, will have its budget cut by 3.9% – £836m, the government revealed.

Of this, £82m will come from savings to be found by universities this financial year, and £118m from a fund set up to provide extra places, under Labour.

The total budget for higher education is £7.3bn. Spending on research, innovation, business and enterprise will be protected, the government said.

The lecturers' union said ministers had "dashed the hopes of thousands of people" by halving the number of extra university places.

Sally Hunt, general secretary of the University and College Union, said: "The government needs to stop pretending we're all in this together. Its promise last week to business to slash corporation tax at a cost of £6.4bn to the Treasury has made it quite clear where its priorities lie.

"Students and their families must wonder what they have done to be treated so badly by this coalition government. First the Lib Dems renege on their flagship policy to fight against fees, and now the opportunity of a university education is being restricted.

"Our competitor countries are increasing the number of graduates to compete in a high-skill knowledge economy. We are denying thousands a place at university and increasing the burden on our benefits system."

Professor Steve Smith, President of Universities UK said: "Universities are already dealing with the impact of over £1bn of cuts announced by the previous government since last December. A further £200m of in-year cuts will make the task of meeting student demand this summer – and not compromising on the quality of the student experience – even harder."

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