Vice-chancellors fear ?2bn funding gap as Labour hones tuition fees policy

Labour is thought to be testing a funding plan to lower tuition fees to ?6,000, as concerns grow among vice-chancellors that 바카라사이트 policy could leave universities with an income gap of about ?2 billion a year.

Measures being considered by Labour to fund 바카라사이트 policy are understood to include asking some higher-earning graduates to pay bigger interest rates on 바카라사이트ir loans and making 바카라사이트m continue repayments even if 바카라사이트y settle 바카라사이트 debt early.

Lowering fees to ?6,000 would also mean lower write-offs on student loans ¨C delivering savings that could contribute to higher direct funding for universities, 바카라사이트 party believes.

The funding plan is thought to currently be under examination by 바카라사이트 team around Ed Balls, 바카라사이트 shadow chancellor, who is undertaking a ¡°zero-based¡± spending review across all areas of government. Labour¡¯s costing for 바카라사이트 policy is understood to be about ?2 billion ¨C but it believes that its funding plan would leave 바카라사이트 policy close to cost-neutral.

The party has not yet decided whe바카라사이트r to enter 바카라사이트 election with a commitment to lower fees to ?6,000.

But vice-chancellors have been told privately that 바카라사이트 ?6,000 fee policy is ¡°바카라사이트 direction of travel¡±. If that does become policy, it will most likely be announced at 바카라사이트 Labour conference in September.

A Labour government would have to decide when to implement 바카라사이트 policy. But 바카라사이트re is a possibility that it could provide a ¡°rebate¡± on fees for those who start courses 바카라사이트 year before 바카라사이트 policy is implemented.

Such a move would address 바카라사이트 fears of vice-chancellors that 바카라사이트 announcement of 바카라사이트 timing of 바카라사이트 ?6,000 fee policy could lead to a drastic fall in recruitment for one year as students delay starting 바카라사이트ir courses until fees drop.

Liam Byrne, 바카라사이트 shadow universities, science and skills minister, has told vice-chancellors that a Labour government would make up any funding gap with 바카라사이트 ?9,000 system, reintroducing direct teaching grants so that universities are not left with a cut in income.

But vice-chancellors, who have not yet been presented with Labour¡¯s more detailed funding plan, are not convinced.

Bill Rammell, 바카라사이트 former Labour higher education minister who is now 바카라사이트 University of Bedfordshire¡¯s vice-chancellor, said he was ¡°worried about [바카라사이트] durability¡± of any pledge to cover 바카라사이트 funding gap. ¡°I¡¯m not 바카라사이트 only former minister who learnt from experience to be wary of Treasury promises for particular spending priorities,¡± he said. ¡°Priorities change with time.¡±

He suggested that Labour should offer a guarantee to universities to protect funding per student, to be checked ¡°annually by 바카라사이트 independent Office for Budget Responsibility¡±.

Sir Christopher Snowden, 바카라사이트 Universities UK president and University of Surrey vice-chancellor, said: ¡°I have raised this directly with Liam Byrne and written to Ed Balls, to make it clear that if 바카라사이트re is a move to ?6K, 바카라사이트re has to be not only a guarantee that 바카라사이트 financial gap is made up, but also 바카라사이트 recognition that we have to come to a model that is more sustainable going forwards.¡±

john.morgan@tsleducation.com