Many of England's most popular universities may risk incurring government "fines" this autumn by recruiting more students than they are allowed.

Surrey University, which has seen a 40 per cent increase in applications, is considering ignoring a government cap on the number of students it takes in.

Other leading universities are expected to follow suit - a move which some academics fear could lead to lesser known universities losing out on student numbers.

Chris Snowden, the vice-chancellor of Surrey University, is urging ministers to abandon the "cap" on student numbers.

At present, universities risk the loss of government cash support if they recruit more than five per cent above the official number of students they are allowed.

However, the introduction of top-up fees of up to £3,000 a year per student, along with university efforts to raise more money from the private sector, softens the blow - and ensures they can secure income if they ignore the figure. "There are two options which could be open to us: put up with the fine or persuade Hefce [the Higher Education Funding Council for England] to give us additional student numbers," he said. However, he argued that the second option could take too long to achieve.

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