Professor Willcocks said the budget squeezes being imposed because of the recession and the levels of national debt meant her university would not be able to increase the number of students it takes on.

“We’re not reducing places,” she said.

“But we’re not expanding them either. That’s a tragedy, because there is so much talent and aspiration out there.”

In the United States and Europe, Prof Willcocks said, governments were investing in universities to prepare for the post-recession world. “But here there is not one of the three main parties making that commitment.”

Both the university and its students would be affected, she admitted. Graduates would have to be much more proactive and entrepreneurial if they wanted to find a job.

“They will have to be able to think more responsibly and be better able to articulate the skills they have gained by studying. It won’t be just about saying to an employer ‘I’ve got a 2.1 in English’ but ‘I have an English degree, and I did a six-month placement with a small publisher in Harrogate’ or ‘I did some work for a small business in Thirsk and completely rewrote their marketing materials’.”

Prof Willcocks, who retires today after 11 years in charge at St John, said the university had taken steps to ensure it remained on a firm financial footing.

“We have spent the last three years ensuring the university is well placed to be as efficient as it can be,” she said. “We will be spending money wisely, making sure we have a curriculum that is going to continue to attract the best students, and looking at alternative sources of funding.”

York St John would be in surplus this year, she said. “And we are projecting a budget in surplus next year.” But it was difficult to look beyond that because of the General Election. “It is what is going to happen after May 6 that everybody is bracing themselves for.”

During her 11 years in charge, Prof Willcocks has guided the institution through enormous change. York St John has relocated to a single campus, invested substantially in new buildings, and above all, achieved university status, in 2006.

That made a real difference, Prof Willcocks said. “It was about joining the big boys’ club.” The university has a higher standing nationally, which means it is better able to attract funding and enter into collaborations. There are also higher expectations. “And for the students there was huge pride.”

York has spent the week showing its appreciation for the outgoing vice-chancellor. There have been gifts and messages of support, plus a series of dinners and parties – including a service of thanksgiving at Bishopthorpe Palace.

This afternoon there will be a party for the whole university. “That will be the final curtain!”

What about her future? She has just become a non-executive director of York Hospital, and she remains a trustee of the Joseph Rowntree Foundation, chairman of the York Theatre Royal Trust, and on the board of the Yorkshire Film Archive, among other things. All that, and she is setting up her own leadership consultancy.

“So I’m already having trouble finding space in my diary!” she said.