Laura Spence: At the centre of the access row

Half of the total allocation - �50m - is ring-fenced for preventing the "brain drain" of leading academics.

Mr Brown said in his announcement that by 2010, he wanted the majority of young people entering higher education.

The Education Secretary, David Blunkett, has explained how the �20m for widening access would be spent to help reach that goal.

Sutton Trust

The cash will be used to help universities link with schools and colleges to "attract able students from a broader range of backgrounds", he said.

"The new funding will pay for summer schools at leading universities for pupils from disadvantaged backgrounds, better links between academics and teachers, recruitment officers, outreach work and improvements to admissions programmes."

Mr Blunkett said the government would be working with Peter Lampl, the philanthropic champion of widening access to top universities, and his Sutton Trust, along with others, to "deliver a substantial programme for change".

He also announced that Mr Lampl had been appointed as an adviser on widening access to the Higher Education Funding Council for England (Hefce).

Peter Lampl will work with the government on widening access

For some time, concerns have been raised in the higher education world about the recruitment and retention of university staff who are tempted abroad or into other professions by higher salaries.

The �50m allocated to help in this area is an acknowledgement of the problem universities face in what Mr Blunkett has called "an increasingly competitive global market for people and ideas".

The rest of the higher education money - at least �30m - will be spent on a number of other projects, some of which have not yet been specified by the government.

What Mr Blunkett has said is that the extra funding will contribute to setting up e-universities to offer online degree courses to students.

It will also fund the first prototypes of foundation degrees - two-year vocationally-orientated degrees.

Warm response

A spokeswoman for the Education Department said some of the money would be spent on "various other things", details of which were not yet being given out.

She also stressed that "at least" �100m would be coming to the sector next year - and that more could be still to come.

And Mr Blunkett pointed out that universities would also "benefit substantially" from increased funding for science.

A spokesman for Hefce said it had not been confirmed that all the extra funding would be administered by the higher education funding councils, although this was expected.

Diana Warwick: "Universities expect their share"

The higher education sector's overall response to the spending review was warm, but concerns were expressed that extra funding had only been promised for one year - 2001/02.

Sir Brian Fender, chief executive of Hefce, described the announcement as the clearest evidence yet that the government was committed to higher education and the powerful role universities and colleges played in the knowledge economy.

He said: "The additional funding will enable Hefce to develop further our initiatives to widen participation, promote quality in teaching and research, and strengthen links with business and the community.

"Higher education is central to building a dynamic economy and an inclusive society. We have a highly successful higher education sector. But it can only maintain that record of success if properly funded.

'What happens next?'

The Committee of Vice-Chancellors and Principals expressed "cautious optimism" about the future funding for universities, following Mr Brown's announcement.

While it is pleased with the extra funding for 2001/02, it is concerned about what will happen in the following years of the review period.

Its chief executive, Diana Warwick, said: "Universities expect their share of the announced 6.6% increase in the overall education budget."

The Education Department spokeswoman said the funding for higher education was going on "a year at a time basis at the moment".