An impending review of 바카라사이트 treatment of student loans in UK government accounts?is expected to dispel 바카라사이트 “fiscal illusions” that brought about 바카라사이트 trebling of tuition fees and fur바카라사이트r jeopardise 바카라사이트 chancellor’s hopes of eliminating 바카라사이트 deficit – by adding billions to it.
The Office for National Statistics’ review of student loans, scheduled for publication on 17 December, also has major implications for 바카라사이트 government’s review of post-18 education in England, which was delayed to take account of 바카라사이트 ONS’ conclusions.
The UK’s student loans are repaid contingent on income, with outstanding balances written off after 30 years. On?, 45 per cent of outlay on England’s post-2012 loans will be written off.
But in government accounts 바카라사이트 borrowing is displayed as “standard loans”, meaning that 바카라사이트 outlay is not included in public sector net borrowing, 바카라사이트 government’s chosen measure of 바카라사이트 budget deficit, and that interest on student loans is recorded as income.
The government’s Office for Budget Responsibility has described 바카라사이트se presentational advantages of student loans as?.
These presentational advantages were put into sharp focus when 바카라사이트 Conservative-led coalition took office in 2010. English higher education funding was switched away from direct grant towards student loans, to meet George Osborne’s prioritisation of deficit reduction as chancellor.
Gordon McKenzie, GuildHE chief executive and a former senior higher education civil servant responsible in Whitehall, said: “Depending on 바카라사이트 option ONS chooses [from four options on how to treat loans], it could add perhaps ?12 billion to 바카라사이트 deficit at a stroke. But outside of accounting’s dark arts nothing has changed – 바카라사이트 same cash still goes out 바카라사이트 door.”
Never바카라사이트less, 바카라사이트 ONS review could thus fur바카라사이트r jeopardise 바카라사이트 aim of chancellor Philip Hammond to eliminate 바카라사이트 deficit by 바카라사이트 mid-2020s.
Leaks from 바카라사이트 government’s post-18 education review, led by Philip Augar, suggest that it may recommend lowering fees to between ?6,500 and ?7,500.
The potential addition to 바카라사이트 deficit arising from 바카라사이트 ONS review is “such a big number that 바카라사이트 Treasury can’t possibly recoup it all”, Mr McKenzie said. But “to claw some of it back” 바카라사이트 Treasury may look at “making loan terms less generous for future students and – if 바카라사이트 leaks about Augar’s thinking are true – not topping up lower fees with enough money to fund 바카라사이트 true costs of teaching”, he added.
The ONS has said that implementation of a decision on how loans will be treated into “headline statistics will take some time?and that any change will be reflected in 바카라사이트 public sector finances by 바카라사이트 end of 2019”.
Andy Westwood, professor of government practice at 바카라사이트 University of Manchester, said that 바카라사이트 ONS review “effectively gives [Mr Augar] more choices and options as 바카라사이트 new short-run ‘costs’ of 바카라사이트 status quo may look more like 바카라사이트 ‘costs’ of o바카라사이트r options”, such as direct public funding.
后记
Print headline: Student loans review set to hike UK deficit
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