Dual Support System Under Threat?

The Business Secretary Peter Mandelson has announced a review of HE funding to cut back on overlaps. There's no more detail yet, but the fear is that the Dual Support System is under threat. The government has been under pressure to cut what are seen as costly quangos.
Apparently BIS, Hefce and RCUK were caught off guard by Mandelson's remarks, and none have commented.
Would a review be a bad thing? Not necessarily, but it depends on what is provided as a replacement to Dual Support. The fear is that, in the current economic climate, government will be looking to fund less rather than more. We'll watch with interest...