Newcastle University is one of five in the North East

Speaking in the House of Commons on Thursday, Kevan Jones warned the Education Secretary that elite universities in the south could take most of the extra money.

Such a move could leave local universities short of cash, claimed the Labour MP for Durham North.

Mr Jones was referring to the north east's five universities - Newcastle, Northumbria, Sunderland, Durham and Teesside.

He said: "There is real concern among regional universities... that they would be at a disadvantage if elite universities, mainly in the south of England, are allowed to raise their fees by upward of �10,000 a year."

In reply, the Education Secretary Charles Clarke said no one was anticipating charging such high fees and went on to praise universities in the north east.

He said: "The question from my honourable friend gives me a chance to pay tribute to the five universities in the north east who are working extremely well together.

"It to promote the kind of collaboration that we have been describing, precisely to avoid the kind of effects about which my honourable friend expresses concern."