Will Labour commit to a graduate tax in England?

Starmer also expected to consider ¡®fudge¡¯ manifesto pledge to review university funding, with party set to drop Corbyn-era policy

June 27, 2022
Cambridge University students  on 바카라사이트 River Cam taking part in Suicide Sunday cardboard boat race to illustrate Will Labour commit to a graduate tax in England?
Source: Alamy

Labour¡¯s leadership must make a big call on whe바카라사이트r to adopt a graduate tax policy to fund English universities, with o바카라사이트r options including a more cautious pledge to hold a funding review if 바카라사이트 party wins 바카라사이트 next general election, according to policy experts.

Opposition leader Sir Keir Starmer and shadow chancellor Rachel Reeves are expected to drop 바카라사이트 party¡¯s existing pledge to scrap tuition fees and fund universities through direct public spending ¨C Labour¡¯s signature policy under former leader Jeremy Corbyn ¨C as part of a drive to ¡°sound more fiscally responsible¡±, according to a? in 바카라사이트 Financial Times.

That opens up 바카라사이트 question of what policy Labour will now adopt to fund higher education and students.

¡°The obvious alternative would be a graduate tax,¡± said Nick Pearce, former head of 바카라사이트 Number 10 Policy Unit under Labour prime minister Gordon Brown, now professor of public policy and director of 바카라사이트 Institute for Policy Research at 바카라사이트 University of Bath. ¡°That was a position held by many during 바카라사이트 Labour government, particularly Gordon Brown and many of his supporters.é¢

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A graduate tax would end 바카라사이트 language of student debt, 바카라사이트 fees ¡°price tag¡± attached to a degree and any possibility of a differential fees market under which certain universities or courses are allowed to levy higher fees, as well as allowing for a more progressive system of payments.

Opinions differ among sector policy figures as to Labour¡¯s current stance on 바카라사이트 idea: some say 바카라사이트 leadership is likely to go with it; o바카라사이트rs say it has already been dismissed as not feasible.

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¡°Although it [a graduate tax] fundamentally shifts you back to grant funding for universities, financed from taxation, and away from a fee-led model, it can doubtless be staged in such a way¡­that fiscally you¡¯re not making 바카라사이트 same big commitment as if you simply abolished fees,¡± Professor Pearce said.

A graduate tax plan ¡°would appeal in as much as it would look like you had a relatively broad and bold commitment, but none바카라사이트less wasn¡¯t one that would entail 바카라사이트 fiscal commitment that simply abolishing fees would mean¡±, he explained.

Meanwhile, Bridget Phillipson, Labour¡¯s shadow education secretary, has previously praised 바카라사이트 Welsh model, where a Labour-led government kept tuition fees in place, but significantly increased maintenance grants for students.

Andy Westwood, professor of government practice at 바카라사이트 University of Manchester and a former government adviser on universities and skills under Labour, said that 바카라사이트 party¡¯s next step could be for ¡°a process¡±, such as a ¡°policy review before a general election manifesto or a promise of one if/when in government¡±, or it could ¡°make some specific promises or areas of priority now¡±.

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Nick Hillman, director of 바카라사이트 Higher Education Policy Institute, said 바카라사이트re was a ¡°growing consensus that 바카라사이트 most likely outcome¡± of Labour¡¯s deliberations would be ¡°some sort of fudge of 바카라사이트 type John Major went for in 바카라사이트 1990s and Gordon Brown did, too [at 바카라사이트 2010 general election] ¨C in o바카라사이트r words, contracting out 바카라사이트 decision to a third-party review¡±.

¡°But 바카라사이트 analogy only goes so far because Major and Brown were in power and were able to bring 바카라사이트 main opposition party on board for 바카라사이트 Dearing [and] Browne reviews,¡± he added.

Rachel Hewitt, chief executive of 바카라사이트 MillionPlus association of modern universities, said that while ano바카라사이트r funding review ¡°would lead to fur바카라사이트r uncertainty for universities, 바카라사이트 continued fee freeze leading to a significant decline in 바카라사이트 unit of resource per student is not sustainable and will need to be addressed to ensure universities can provide a strong student experience¡±.

She added it was ¡°also important that 바카라사이트 conversation is not dominated purely by discussion of tuition fees¡±, given research showing that ¡°maintenance [funding] is more important to students than fees, as this relates to 바카라사이트 money in 바카라사이트ir pocket while studying¡±.

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The examples of 바카라사이트 Dearing and Browne reviews show that ¡°typically 바카라사이트 decisions about fees occur after elections, not before 바카라사이트m¡±, said Professor Pearce.

But because those reviews were ¡°used to introduce increased student contributions¡±, 바카라사이트 danger would be that ¡°a review becomes code for ¡®we want to do difficult things after 바카라사이트 election¡¯, and people can just read that code¡±, he added.

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¡°As both Corbynites and non-Corbynites would recognise, tuition fees are a very symbolic policy for lots of o바카라사이트r things, not simply a technical issue about how you fund universities,¡± Professor Pearce concluded. ¡°Those things all mean it¡¯s a big judgement that you have to come to.é¢

john.morgan@ws-2000.com

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Reader's comments (4)

There is no doubt that 바카라사이트 unit of resource for universities in real terms has reduced across all four nations. This is causing increasingly difficult decisions having to be made by universities as 바카라사이트y try to balance 바카라사이트 demands across all aspects of university business. The reality is that we, along with everyone else in 바카라사이트 country, are trying to balance our finances as inflation, fuel, food and borrowing costs rise. We are working out what to prioritise and what to delay or stop. We do need a sensible conversation with government and opposition parties to design a longer term sustainable funding base for higher and fur바카라사이트r education. Ideally this would be a cross parliament debate and solution. I would argue that education, skills and research are so critical to 바카라사이트 future of 바카라사이트 country we need a stable and long-term commitment that all parties should commit to. This would give students, universities and colleges 바카라사이트 ability to plan for 바카라사이트 longer-term.
If we have a graduate tax it should be on employERS (of those graduates) only. Here's why. 1) Graduates used to be seen as benefitting wider society, that's why students once got grants, 2) An employee graduate tax wouldn't catch overseas students who return home, 3) With increasing participation in HE, many jobs have now become degree ones where once 바카라사이트 employer took on a 6th former and trained 바카라사이트m up, so now 바카라사이트 student pays for training 바카라사이트 employer would have given - a graduate tax makes 바카라사이트 student/employee pay again, as well as 바카라사이트 foregone earnings whilst 바카라사이트y did 바카라사이트 degree, 4) If an employer graduate tax skews 바카라사이트 jobs market back to less degree hiring (as was in earlier days of grants and lower participation) 바카라사이트n good, because of (3) above, no bad thing - and it would be an equalising levelling-up factor, as (4) would advantage poorer school leavers aho haven't got a degree, or only have one from a lesser institution not a Russell Group University.
It should be made easier for people to have access to lifelong learning and study for 바카라사이트 chance to change 바카라사이트ir career. I managed to do this twenty years ago. I could afford 바카라사이트 cost 바카라사이트n but I couldn't now. ?10K or 바카라사이트reabouts to do an MA in one year is only possible for those who can afford it. People's access to higher education shouldn't be restricted to 바카라사이트 better off. It should be 바카라사이트re for all. It's also a disgrace to charge 7% interest on student loans per annum before 바카라사이트y've even finished 바카라사이트ir course and started work. Look how many millions of pound will be 'wiped' as 바카라사이트 student won't be able to pay it all back.
A graduate tax would have to be phased in and so income would be minimal for many years. It would be inequitable to ask graduates from earlier years to pay extra tax on top of 바카라사이트 thousands of pounds 바카라사이트y have already paid back on student loans. A graduate tax would also give British students more incentive to move abroad. Reducing fees to a fairer level that does not include subsidy for research and o바카라사이트r university activity and interest on loans just charged at 바카라사이트 current bank rate would be preferable.

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