Britain must avoid being left behind as India and China increase university funding, the House of Commons Education and Skills Committee warned this week.
Barry Sheerman, chairman of the committee, told Department for Education and Skills representatives on Wednesday: "Ministers coming back from these countries have been terrified by the investment they are putting into higher education."
Sir David Normington, permanent secretary at the DfES, stressed that it had to choose priorities for higher-education funding such as the "huge investment" in science.