The executive wants to widen access to higher education

The funding announcement was made by the Scottish Higher Education Funding Council (SHEFC), which is responsible for allocating government cash to universities across the country.

Chairman Dr Chris Masters said one of the main objectives is to make universities and colleges more accessible to disabled people.

He said that in return for the extra spending, universities will be expected to widen access to the public and drive up teaching standards.

In previous years, funding levels have either stayed the same or cutbacks have been needed in other areas to pay for extra spending.

Dr Masters said: "I am sure that institutions will welcome this substantial increase in core funding.

Diversity aim

"It well help to sustain Scotland's world-class teaching base, promote widening participation and retention of students from under-represented groups and make a vital contribution to Scotland's knowledge base and economic prosperity.

A quarter of the money is earmarked for research

"Our objective is not only to maintain the diversity of the Scottish higher education system, but also to allow the institutions to achieve their objectives and address the executive's and the funding council's key priorities."

The main beneficiaries of the extra funding will be Edinburgh University, which will receive �123m - more than �5m up on last year.

Glasgow University will receive �114m compared to almost �108m last year, while St Andrews University, where Prince William will begin studying in the autumn, will see its funding go up by �1.5m to nearly �31m.

Earlier this week, the Education Institute of Scotland called for a rethink on university funding saying that some institutions and subjects would lose out.