The UK is falling behind some of its international rivals in terms of its number of graduates, according to a report by the Organisation for Economic Co-operation and Development (OECD).

The UK slipped from third highest to fifteenth in the years between 2000 and 2008 with the Russell Group of leading universities in the UK warning further cuts to the higher education system could lead to a “lower division of higher education quality from which it would be difficult to ever recover”.

The OECD also expressed fears that having fewer people with qualifications would lead to long-term economic problems in the UK, as short-term cuts in higher education would also reduce the tax returns of the future.

Steve Smith, president of the universities group Universities UK, is also concerned about the nature of the findings and the cuts, saying: “At a time when many of our competitors are investing in higher education and research as a way out of the recession, we cannot afford to be left behind.”

Universities Minister, David Willetts, believes that the report shows that higher education shows some real challenges which he says the government is “ determined to tackle”. Willetts added that the government had taken action to boost numbers by funding an extra 10,000 places.

However, with the UK now falling behind Poland, Iceland and Slovakia in the list of the proportion of young people graduating, and countries like Australia and New Zealand doing well owing to increased investment in higher education, some people are starting to worry.

Aaron Porter, president of the National Union of Students said: “With the UK already being left behind other countries in its graduation rates and public funding, a double whammy of short-sighted funding cuts and arbitrary limits on student places will make matters far worse in the years ahead.”

This view is echoed by Sally Hunt, head of the UCU lecturer’s union who warns that the governments refusal to fund sufficient places at universities will “come back to haunt us”.

How do you feel about the UK higher education system? Do you think that cut-backs are the wrong answer and the government should be investing for the future? Let us know what you think below.