About 30% of students at John Moores do not pay fees

Vice-chancellors, the chief executives of universities, have accepted higher tuition fees as the only likely way of increasing funds.

They say they need an extra �10bn to "stand still" after two decades of under funding.

The vice-chancellors of Liverpool's two universities told BBC News Online what they thought of the government's proposals.

Professor Drummond Bone is the Vice-Chancellor of Liverpool University, which is a member of the Russell Group of England's leading universities.

"It's a bill that will make nobody really happy but it is a reasonable compromise," he said.

"Universities are probably reasonably happy, but whether enough has been done to allay fears of back-benchers, I don't know.

"A bill that will make nobody happy", says Professor Bone

"It's become a political issue rather than a practical issue."

He is critical of the way bursaries are being imposed on universities, because he dislikes increased regulation of universities.

"But most universities are offering bursaries higher than that which is being proposed so it will not be a huge imposition," he said.

Professor Bone reflects the views of many vice-chancellors when he says he is not happy with the creation of the office of the Access Regulator, who will need to be satisfied individual universities are trying attract students from low-income homes.

He thinks the real battle now is to make sure people are not put off going to university by the fees.

"We need to get the message across that fees are not going to paid upfront.

"It's remarkable that people don't understand that they won't have to pay anything until they are making money and that education will be free at the point of access."

Professor Brown, the Vice-Chancellor of Liverpool John Moores University was quite pleased with the plans.

"It's a surprise it's as good as it is. The outcome demonstrates that they have been listening very carefully."

"It's surprising it's as good as it is," says Professor Brown

He said the bill had met his two main concerns - that universities should get the resources they need and that students should get a better deal.

"The real break-through is the commitment to make it easier for students to borrow enough money to live on," he said.

"Fees are not the problem, as they will be paid in arrears."

"The Access Regulator is a waste of time, we will be doing it (widening access) anyway."

Professor Brown says about 30% of students at John Moores do not pay tuition fees - the same as the national average.

So under the plans, the university would be required to give bursaries of about �300 to that proportion of its students - if it set tuition fees at the maximum of �3,000.

Proposals on bursaries are a "good compromise," he says.

Overall, he is pleased with the plans.

"In an ideal world I would like universities to be paid for by general taxation, but that's not on offer.