University vice-chancellors published a report this week, making it clear they believe student fees must rise again. While it is hardly surprising that they should demand even more money from students, it is equally clear that a new fee hike is not compatible with getting Britain through this recession, or supporting the process of recovery. To launch a campaign for higher fees when so many are returning to education to improve their chances, against the odds, is as astonishing as it is misguided.

Even more worryingly, these vice-chancellors seem to be complacent about the risks posed by opening up a full market of prices in higher education. Having campaigned for a market-based system so vehemently in 2004, they now seem to be going to great lengths to play down the chances that a market would emerge – even if the cap on fees went up to £7,000 a year. I believe as a matter of principle that there is a role for increased ‘choice’ in making our public services better. But a market in higher education would not meet the basic tests for a progressive market: it would not open up choice, widen access or improve accountability.

This market would act against the public interest because there is insufficient flexibility in the system for students to exercise real choices, and because the elite institutions would have an in-built competitive advantage based on their huge endowments, and the ever-present cachet of prestige. This market would really be about conserving and reinforcing old patterns of access and reputation, further embedding social advantage for a privileged few. This is a market, for example, that would do nothing about the fact that 30 per cent of all undergraduate entrants to Russell Group universities went to private schools.

Advocates of a market in university fees believe that their approach merely reflects differences of quality and return on investment within the higher education sector. We believe a market would cause these divisions to emerge, and would see the higher education system become a significant barrier to social mobility – the precise opposite of our ambitions.

There is an important debate to be had about the funding of higher education, but vice chancellors do not seem to want to have it – so wedded are they to a structure that doesn’t meet the needs of our changed economy. We believe there must be fundamental and radical reform. We accept that individuals should contribute to the costs of higher education after they have graduated, but we want this to happen in a genuinely progressive way. Eventually, we must rebuild a financial compact between the state, individuals and employers. In the short-term, it means making clear to some university leaders that students are in no position to pay more – and there is real concern about the role of markets.

Vice-chancellors seem to have moved from their dreaming spires to their ivory towers; I hope they reflect on the reality for people who have access to neither, and reconsider their position.

Students will today visit Westminster to the National Union of Students’ lobby of Parliament. We will present MPs with five foundations for a fair and viable alternative to top up fees.