By Sean Coughlan BBC News Online education staff

A university chief is warning of "disastrous" consequences if the government draws a dividing line between institutions that teach and those that carry out research.

While attention has focused on student fees, the forthcoming review of higher education will also address the funding and function of universities.

Tim Boatswain fears the creation of a "second division" of universities

And vice-chancellors have expressed deep reservations over reports that some universities will be devoted to teaching, and will no longer be able to support research or award PhDs.

In particular, there are concerns among some "new" universities that they will be excluded from research.

Such an outcome would be "fairly disastrous" for new universities seeking to attract academic staff and more able students, says Tim Boatswain, pro vice chancellor at the University of Luton.

"If a lecturer was starting his or her career, would they want to accept a place at a university where they could only teach and could not carry out research?"

Damaging

It would also be "seriously damaging" to the recruitment of students, he says, discouraging applications from more able students.

The effect would be a polarisation of institutions and the creation of a "second division" of universities, he says.

These universities, without researching academics, run the risk of becoming unprestigious local teaching institutions which fail to develop the full potential of students.

And this would undermine the international reputation of the higher education system in the United Kingdom.

"What distinguishes higher education from further education is the obligation to carry out research," he says.

Cost saving

"It is difficult to see what advantage there could be from stopping universities carry out research. It would be very disappointing."

He also argues that teaching and research are interwoven - and that teaching benefits from academic research.

It has been suggested that as a cost-saving measure that research funds could be concentrated in a smaller number of institutions.

And it is assumed that this would benefit the traditional, longest-established institutions.

But less-glamorous universities fear that losing PhD programmes and research projects would mean a loss of status and make it even harder to attract students.

And there are concerns that for hard-pressed new universities, it could mean an unwelcome blurring of the boundary between higher and further education.