The government has so far ducked the row: the new higher education secretary Lord Mandelson insists today that he does not "recognise the committee's description" of universities.
But his speech last week warning that universities should provide more options for part-time or mature students and for local study near home were seen privately by vice-chancellors as a sign that future government funding will have more strings attached. And an incoming Tory government may be even tougher. David Willetts, the Conservative higher education spokesman, says perpetuating myths that all universities are equal is cheating students unfamiliar with the secret pecking order.