A VITAL exam for final-year university students is being cancelled today as lecturers' industrial action bites deeper.

Most universities in the region are coping with the union pay dispute, but fear problems could occur when papers have to be marked.

But The Northern Echo learned last night that two exams at Newcastle University, scheduled for today, will not go ahead - a first-year politics paper and a final-year history paper.

However, some history students could still graduate even if not every piece of assessment is complete.

University bosses say the move is a last resort.

Meanwhile, the 174 politics students who will be affected will have their assessment based on the course work they have already completed.

A spokeswoman said none of Monday's or yesterday's exams at the university were cancelled, and the remaining 40 due to be sat today will not be affected.

A meeting of the university's senate yesterday agreed to amend the academic regulations so final-year students' classifications could be determined on the basis of their completed work.

Elsewhere, the University of Sunderland, Northumbria University, Durham University, the University of Teesside and the University of York have decided not to scrap exams.

The universities, however, have plans to make sure assessments and exam papers are marked if the industrial action continues.

Some members of the lecturers' unions, Natfhe and the Association of University Teachers, are refusing to mark examination papers as part of a nationwide dispute over pay.

* University bosses and academics' unions will hold fresh talks tomorrow aimed at resolving the lecturers' pay dispute after discussions broke up without agreement last night.

The employers' group UCEA met unions at conciliation service Acas in London yesterday.