University and college lecturers in Scotland have demanded higher taxes on banks and businesses to sustain free higher education.

Members of the University and College Union (UCU) Scotland noted funding cuts, especially to teaching budgets, "with alarm" at their annual conference in Dundee.

But they voted against introducing tuition fees, instead calling on the union to campaign for "free education" in Scotland, funded through a system of progressive taxation.

They want the union to campaign for the banking and business communities to be taxed so that they pay a fair share for the benefits they receive from higher education.

Education Secretary Michael Russell has said the introduction of tuition fees in England would leave Scotland with a net funding gap of £93m in 2014-15.

 However, university groups and opposition leaders have put the figure at around £200m.

UCU members at the congress also called for an inquiry into compulsory job losses at universities such as Glasgow, where courses have been cut and 95 jobs could be shed as part of a £20m savings programme.

Lesley McIntosh, president of UCU Scotland, said: "Delegates at our Scottish conference in Dundee meet at a critical time to debate the crucial issues for higher education.

"As the election begins, politicians are debating how to respond to the massive increase in fees in England.

"But universities are already suffering cuts across Scotland and for the first time in Scotland we have compulsory redundancy notices handed out."

Liberal Democrat leader Tavish Scott, SNP leader Alex Salmond and Labour leader Iain Gray have said they are committed to ruling out fees for university students.

Tory leader Annabel Goldie says her party is being realistic by insisting fees must be introduced.