He claimed universities faced losing £2.5bn-£3bn from their teaching funds.
"The government is removing 90% of our teaching funding – this is almost £50m over three years from 2012/3.
"It is regrettable that the 10,000 extra student places announced this week, while welcome, come without teaching funding," she said.
The initiative is an attempt by the German federal government to send research and teaching funds directly to universities, which are traditionally funded by individual states.
And it's possible that some of our institutions will fail, if their only source of income is teaching funding and they get very little research funding".
For all institutions in modern languages, teaching funding is greater than research funding so that will have to reduce as demand falls off.
This could see Hefce lose its role in teaching funding, a move which would surely be the final nail in the coffin.
Ever since the bulk of teaching funding was taken out of its control and put into tuition fee loans in 2011, Hefce has looked vulnerable.
The Browne review gives us a clear steer, noting that £700m will remain for funding the teaching of priority subjects; this implies other teaching funding, about £3.2bn a year, could be removed.
Meanwhile, today Hefce announced revised university grants for 2009-10, whincludelude a cut of 1.36% to universities' total teaching funding and changes to funding for widening participation, teaching enhancement and student success.
"This institution has been created as a reaction to the government's swingeing cuts to higher education funding that have seen all teaching funding removed from many humanities subjects," he said.
