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Although directly only universities in England will be directly  affected, the other part of UK would feel the negative effects of the  Barnett formula which settles funding allocations to the devolved  administrations. The essence of the so-called “nightmare scenario” is as  follows: firstly, student tuition fees will be raised. Lord Browne's  proposal will surely be accepted by the government. Still, in the  current situation, Treasury decides that the governments funding for  universities should be cut down because the universities will soon get  additional money from the increased fees. Finally, the Parliament may  ignore the government and refuse to approve the higher fees.
In case Backbench Labour MPs finds the supporters of opposing higher  fees among leadership candidates, universities may lose not only  government funding but also the money which were to replace it. Steve  Smith, President of Universities UK, is concerned for his setback for  higher education, though the nightmare scenario may still be realized.  The mentioned-above scenario is more likely to happen if the Browne  Review will be brought to an end before the Labour leadership contest.  That is the reason why many say that the Browne Review, which was  expected by August, will now be delayed until October. If this delay  happens, the tuition fess would probably be no more the issue of Labour  leadership. Moreover, such a delay will make it easier for the  government to get the titbit and not to approve the proposals.
Even if these worst assumptions happen, there is still a more serious  problem that will not let higher tuition fees fill the terrible hole  left by government spending cuts. Since the universities could start to  charge higher fees in autumn 2012 and since they would only apply to  first-year students, it would be only in 2015 that universities receive  the higher fee income from undergraduates. According to Steve Smith's custom essay,  "It's going to be a very, very bumpy few years."