PLAID CYMRU accused Labour yesterday of offering universities “false hope” after appearing to withdraw its emergency fund promise.

Labour Further and Higher Education Minister Vikki Howells U-turned on her previous comments in the Senedd last month suggesting that an emergency fund would be available to bail out universities in a financial crisis.

Plaid Cymru education spokesman Cefin Campbell had asked the minister whether the Labour Welsh government was considering a “rescue package” for universities in Wales, similar to that being developed in England.

Ms Howells responded that a “transformation fund” would be made available to support universities in financial trouble.

But she has since written to the Speaker retracting her pledge.

Welsh Universities have warned of a possible £100 million black hole, with some already announcing redundancies.

Mr Campbell said: “Just as they’ve given false hope to patients with their non-existent cross-border health plans, they’ve also misled the higher education sector by spuriously raising expectations.

“Welsh universities need a cast-iron guarantee from the Labour Welsh government that they will be given the support they need, not just to survive but to prosper.”