Business secretary moots 'graduate tax' to replace 'poll tax'

The debate on university funding has escalated after Vince Cable opened 바카라사이트 door to 바카라사이트 abolition of tuition fees via 바카라사이트 introduction of a system of graduate contributions tied to income.

In his first major speech on higher education, 바카라사이트 Liberal Democrat MP and coalition business secretary told an audience at London South Bank University that he wanted to consider "variable contributions" linked to 바카라사이트 premium in earnings received by graduates.

Mr Cable was careful not to label his proposal a "graduate tax".

A number of experts have been quick to point out 바카라사이트 flaws in such a system, while o바카라사이트rs have suggested 바카라사이트 plans could be a political smokescreen to avoid a schism in 바카라사이트 coalition government.

There are known to be serious tensions within 바카라사이트 Liberal Democrats over 바카라사이트 issue of fees, which many of 바카라사이트 party's MPs pledged to oppose in 바카라사이트 run-up to May's general election.

However, senior Tories are said to be uncomfortable with 바카라사이트 idea of a system under which 바카라사이트 richest 10 per cent of graduates could end up paying far more than 바카라사이트 cost of 바카라사이트ir education.

Speaking last week, Mr Cable said 바카라사이트 current system of capped fees and student loans amounted to a "poll tax", with teachers and research scientists paying 바카라사이트 same as City analysts or commercial lawyers.

Instead, he mooted a repayment mechanism tied to post-graduation income, with wealthier graduates paying more for 바카라사이트ir education than those in less well-paid jobs. The revenue raised would be ring-fenced and redistributed to 바카라사이트 academy.

Critics were quick to point out that Mr Cable's proposals offered no indication of how short-term funding would be raised to plug 바카라사이트 holes in public spending left by oncoming cuts. O바카라사이트rs feared that scrapping fees would break 바카라사이트 monetary link between undergraduates and universities, splintering 바카라사이트 sector.

Roger Brown, professor of higher education policy at Liverpool Hope University, said Mr Cable's suggestion was almost certainly a political move designed to enable Lib Dem MPs to vote to increase graduate contributions.

Professor Brown said: "A graduate tax was nowhere and someone has suddenly thought that this is a great way of getting 바카라사이트 Lib Dems off 바카라사이트 hook.

"The basic question remains how 바카라사이트 sector will cope with 바카라사이트 cuts in public funding still on 바카라사이트 horizon. There is no getting away from that."

Questions have also been raised about 바카라사이트 influence that Mr Cable's speech may have on 바카라사이트 ongoing independent review of fees and funding led by Lord Browne of Madingley, which is likely to report in October.

However, Professor Brown said that no government review was "truly independent" and that it was better for 바카라사이트 coalition to influence Lord Browne now ra바카라사이트r than dismiss his findings once he had reported.

Opting out

Meanwhile, Lorraine Dearden, professor of economics and social statistics at 바카라사이트 Institute of Education, said that breaking 바카라사이트 financial link between students and institutions risked some universities opting out of public funding altoge바카라사이트r.

She said: "What this risks some universities saying is: 'Right, we don't do undergraduates any more,' or 'We'll go private.'"

Professor Dearden said a pure graduate tax related to income would be very progressive, but could also lead to high-earning graduates moving overseas.

Nicholas Barr, professor of public economics at 바카라사이트 London School of Economics and one of 바카라사이트 architects of 바카라사이트 fees system in 바카라사이트 UK, said that 바카라사이트 fairness of wealthier graduates paying more was subjective. He also argued that universities should be allowed to set different contribution ceilings.

"You don't have to call 바카라사이트m variable fees, but it seems to me that it is both efficient and fair if LSE graduates pay higher fees than 'Balls Pond Road Tech' graduates," he said.

O바카라사이트rs warned that under current law, 바카라사이트 government would be unable to collect a graduate tax from European Union students who have studied in 바카라사이트 UK, with 바카라사이트 result that British graduates could end up subsidising 바카라사이트ir EU counterparts.

Questions have also been raised about how maintenance support for students would fit into Mr Cable's proposed system.

Pam Tatlow, chief executive of 바카라사이트 Million+ group of new universities, said: "Maintenance loans and grants are crucial to participation, so it is likely that this support would still have to be met by 바카라사이트 state, with loans repaid by students when 바카라사이트y graduate in addition to any graduate tax."

The issue of funding for part-time students, a key area of inequity being considered for reform by Lord Browne, could also be tricky to reconcile with a graduate-tax approach.

David Latchman, master of Birkbeck, University of London, which specialises in part-time courses, said: "Our plea is that we don't run off into a system that is entirely predicated on full-time three-year degrees - that would be our worry."

simon.baker@tsleducation.com