The Association of Graduate Recruiters wants a shake up of UK higher education in a manifesto placing graduate employers at the heart of its suggestions.

Scrapping the cap on tuition fees, reducing the numbers in higher education and providing a more flexible visa system for employers are among the recommendations the AGR is making to the government.

It also advises universities to provide careers services with more resources and support, while employers should maintain their commitment to recruiting graduates.

AGR chief executive Carl Gilleard said: "Job market they will find a landscape scarcely recognisable to their parents. The concept of ‘cradle to grave’ employment is ancient history and the young people graduating this year will have many jobs, and sometimes even several careers, before they end their working life aged about 70.

"In our opinion, there has never been a greater need or a better time for government, employers and universities to begin an honest and open dialogue about the future of higher education and graduate employment. Our prosperity and productivity – as well as the future of our young people – depend on it."

The AGR's seven central recommendations are:

1) Abolish the artificial 50 percent target for higher education
2) Introduce the Higher Education Achievement Report to revise degree classification system
3) Lift the cap off student tuition fees and drive up standards
4) Embed employability skills in all degree courses at all institutions
5) Best practice and resources for university and school careers services
6) Introduce tax breaks for employers of graduates
7) Introduce a more flexible visa system for employers

But the AGR manifesto has come under fire from the University and College Union, claiming the call for fewer graduates and higher fees is out of touch.

The union said that increasing the financial burden on students and their hardworking families was unfair, particularly as a number of other recent reports had exposed the failings of British business to pay its fair share for the numerous benefits it receives from UK higher education.

It cites a report from the Royal Society which shows how little British business contributes to universities compared to companies in other countries and its own report on a business education tax that highlighted the negligible business contribution to higher education. The UCU claims these are more important issues.

UCU general secretary, Sally Hunt, said: "The future for the UK is at the forefront of a high-skilled knowledge economy and we won't get there with less graduates. The three main beneficiaries of higher education have been identified as the state, the individual and the employer, yet only two of them are picking up the bill. It is time that business started to make a proper contribution to university funding, instead of parroting its siren calls to increase the debt of students and the burden on hardworking families struggling in tough economic times."