By Sean Coughlan BBC News Online education staff

Driving policy: Digby Jones offered Charles Clarke his backing on a visit to the Jaguar plant

The business leader gave his emphatic backing for the controversial fees proposals, which have been threatened by a backbench rebellion of Labour MPs.

"It's only right that people who have benefited from higher education should pay back a bit more," said Mr Jones.

But he forecast that the level of fees was likely to rise substantially.

Enterprise economy

This public show of support for the tuition fees proposals was given to the Education Secretary, Charles Clarke, as he visited the Jaguar car plant in Halewood on Merseyside.

The Halewood car plant has put an emphasis on skills and training

"Last year, business paid �13bn more on their payrolls to graduates than non-graduates," said Mr Jones.

As such, the business leader said that graduates should accept that they would have to make a fair level of repayment through higher tuition fees.

"Business is four square behind this - my only concern is that the measures will be watered down," said Mr Jones, who warned that the "battle to build an enterprise economy will be lost unless higher education is properly funded".

The CBI chief also suggested that the proposed upper limit for tuition fees of �3,000 per year would soon rise higher.

"Is �3,000 enough? No, but we live in a political world and we have to deal with what is possible. Do I think that the �3,000 will go up substantially over the next 10 to 15 years? Yes," said Mr Jones.

Charles Clarke received this backing the day before he meets Labour MPs, where he will be under pressure to make further concessions to rebel backbenchers, who argue that the fee increase will put off poorer students from applying to university.

'No concessions'

But the education secretary rejected suggestions that he would be making further changes to his proposals. "There will be no more concessions between now and taking it forward, it's not a pick and mix menu," he said.

Charles Clarke also opened a new building for vocational education at Knowsley Community College

Mr Clarke said that he had been "frustrated" by the way that the debate over tuition fees had failed to recognise the economic importance of raising funds for higher education and widening participation.

The economic future of the country depended on upgrading skills, he said, as four-fifths of new jobs will be for graduates.

In the debate about tuition fees, he said that the importance of encouraging a partnership between industry and education was being lost. Investing in research and producing well-qualified students was vital to a knowledge economy.

The Halewood plant, which was launching a new Jaguar estate car, was cited as an example of how industry and education should be working together - and Mr Jones highlighted the need for a highly-skilled workforce.

Mr Jones, who also stressed the economic importance of higher education, attacked opponents of the tuition fees plan - accusing them of being "disingenuous" in failing to point out that repayments will not be made until students have entered employment.

Drummond Bone, vice-chancellor of the University of Liverpool, also stressed the importance of allowing university to become "free at the point of access".