In the video, the student struggles to light the note, while the film-maker panned to the homeless person.

The student says "some homeless shelter", and the video, which was allegedly taken in the early hours of February 2, cuts out.

It has been rumoured that burning a £50 note in front of a homeless person is one of the initiation ceremonies of Oxford's notorious Bullingdon club.

Coyne is understood to be a first-year Law student at Pembroke College, where there is "absolute panic" over the potential criminal ramifications of the incident, a source told the Telegraph.

The source claimed that Cambridge police had called the college on Friday morning over the incident citing Section 4A of the Public Order Act under which intentionally causing harassment, alarm or distress is an offence. An offence under the Act can carry up to six-months in prison.