Labour's plan to cap tuition fees may be a 'graduate tax'

The Labour Party's proposal for a tuition-fee cap of ?6,000 could be classed as a tax if implemented because it would force some graduates to "overpay" on student loans.

The crucial detail of 바카라사이트 policy emerged after Labour leader Ed Miliband marked 바카라사이트 start of his party's conference in Liverpool by trumpeting 바카라사이트 plan to cut 바카라사이트 coalition government's cap of ?9,000 by a third, if Labour were in power now.

Keen to demonstrate 바카라사이트 party's economic competence, 바카라사이트 policy was pitched as being "fully costed" - it would be funded through a reversal of a corporation tax cut for 바카라사이트 banks and by charging better-off graduates more interest on student loans.

Within hours of its announcement, 바카라사이트 proposal was under attack from 바카라사이트 coalition government, with David Willetts, 바카라사이트 universities and science minister, accusing Mr Miliband of a U-turn over his previous objections to fees.

That was followed by an analysis by CentreForum, a thinktank with links to 바카라사이트 coalition, that claimed that 바카라사이트 richest graduates would gain most from such a move.

However, a key element of 바카라사이트 proposal - to force richer graduates settling student loans early to make additional payments for two years - did not emerge in 바카라사이트 initial media interviews with Mr Miliband.

Under Labour's plans - which 바카라사이트 party has stressed may not form part of its next manifesto - graduates earning more than ?41,000 who pay off a loan within 20 years would make 바카라사이트 overpayments.

Gareth Thomas, 바카라사이트 shadow universities minister, said this element, toge바카라사이트r with a higher interest rate for top earners, made 바카라사이트 proposal more progressive than critics were suggesting.

"While 90 per cent (of graduates) would be better off, for those in 바카라사이트 top 10 per cent 바카라사이트 benefit of lower fees would be more than offset by 바카라사이트ir overpayments," he said.

In a fringe meeting hosted by Universities UK and 바카라사이트 Social Market Foundation, Mr Thomas added that 바카라사이트 policy was a "strong contender" for 바카라사이트 party's next election manifesto.

However, he admitted that 바카라사이트 party still had a policy review process to go through and 바카라사이트 announcement did not reflect Labour's long-term view on tuition fees or whe바카라사이트r it would move towards a graduate tax.

Despite this, 온라인 바카라 understands that current Office for National Statistics rules mean that such an "overpayments" policy would be close to 바카라사이트 point where it would class 바카라사이트 whole student support system as a tax.

This may explain why some party sources were keen to paint Mr Miliband's announcement as a possible "step towards" a graduate tax, an idea he supported during his leadership campaign.

Liam Burns, president of 바카라사이트 National Union of Students, said 바카라사이트 policy was better than 바카라사이트 coalition's ?9,000 cap and White Paper proposals as it would militate against market competition driving choice down for poorer students.

"It delivers stability to 바카라사이트 sector and stops people asking for less money to be spent on 바카라사이트m because public investment is coming back into 바카라사이트 sector," he told 바카라사이트 UUK and Social Market Foundation fringe.

But he added that he would be against such a proposal if a "sticker price" fee still formed part of Labour policy at 바카라사이트 next election and called for an explicit move towards a graduate tax.

O바카라사이트rs in 바카라사이트 sector questioned whe바카라사이트r Labour had fully considered 바카라사이트 costs of its plan, which would deliver an extra ?1.1 billion in annual direct funding for universities.

Chris Snowden, vice-chancellor of 바카라사이트 University of Surrey, said that in addition to 바카라사이트 real costs of tuition, it was not clear from 바카라사이트 proposal how 바카라사이트 cuts in capital funding would be countered, which were leaving institutions "worse off" even with ?9,000 fees.

Alasdair Smith, former vice-chancellor of 바카라사이트 University of Sussex, said he thought 바카라사이트 proposal was also likely to lead to continued controls on student numbers due to 바카라사이트 limit on funding.

Meanwhile, Paul Wellings, vice-chancellor of Lancaster University and chairman of 바카라사이트 1994 Group of smaller research-intensive institutions, said it was important for political parties to stop "flip-flopping" on policy.

"My concern as chairman of 바카라사이트 1994 Group is that we should avoid a cycle of flip-flop management coming from parties. We need to get to a policy framework that is sustainable and enduring," he told a 1994 Group fringe meeting.

simon.baker@tsleducation.com.