Scotland's government may have to shell out £35m in compensation to English students who have been charged £1,750 more than Scots for exactly the same courses Scottish universities.

When Tony Blair - looking down a funding black hole - decided to introduce 'top up' fees for England's state-run universities, the Scots rejected the idea. Scottish students pay only a £2000 endowment after they graduate; but English students pay £1,250 for each of 3 years - in advance.

And now Holyrood wants to charge English students up to £15,000 for medical degrees. Not surprisingly, students complain this is discriminatory.

The whole thing shows what a mess you get into when the political system runs education. Independent universities would be free to charge students whatever they felt right, based on the demand for their product. But today, it is the politicians who set the price. Not surprisingly, they try to set it sufficiently low that students and parents don't get too annoyed. So the universities remain starved of cash and the best teachers start moving abroad. Then they start charging foreign students more in an effort to balance the books. But when one part of the United Kingdom starts regarding students from another part as foreigners, you know the whole thing is daft.