CBI calls for university and higher education spending cuts
But he added: "Faced with various stark choices it is inappropriate to stay silent on the subject. This is the least worst solution in difficult times."
The report says business should work closer with universities, to sponsor students and provide more support.
In return business will want to see more emphasis given to certain subjects, such as maths, the sciences and technology and engineering, Mr Lambert said.
NUS president Wes Streeting said: "At a time of economic crisis, when many hard-working families are struggling to support their offspring through university, I am astonished that the CBI should be making such offensive recommendations.
"Students are already leaving university with record levels of debt, while graduate job prospects are at an all time low. Instead of recommending that students are fleeced even more than they already are, the CBI should start looking at how they might put something back into the system themselves."
Sally Hunt, general secretary of the University and College Union (UCU), said suggesting a rise in fees is inevitable was "incredible", adding the CBI proposals "merely list the obvious ways to increase student debt."
Universities minister David Lammy said: "We remain committed to the 50% aspiration. Participation in higher education is an investment both for the individual and for the nation. We should continue to widen access, not only because it's socially just, but also because our future economy will depend on having more people with higher level skills. We are also determined to ensure that finance is not a barrier, which is why we offer such a generous package of support."
The CBI's work will feed into debates about future funding, he added.
Shadow universities minister David Willett said: "The Government has talked endlessly about improving links between business and universities. But they have consistently failed to deliver.
"So the CBI are right to address this issue. Their proposals are a good opportunity to bring this whole issue back to life."
