Higher Education and Student Finance

Gregg McClymont Excerpts

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

I have not referred to endowments, but it is probably fair to mention that there is quite a substantial section on them in the Browne report, which I hope that hon. Members look at. The report says that endowments are a potential additional source of finance beyond graduates and the Government. As my hon. Friend will know, endowments are a major source of funding in the United States, and they need to be made attractive and encouraged in this country. Obviously, I cannot predict what the Chancellor of the Exchequer will do in his next Budget, but such encouragement relates in large part to tax treatment.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

The publication of the Browne report and the Government’s response this afternoon marks the point of no return in the marketisation of higher education. May I ask the Secretary of State, who I am told was once a social democrat, whether he is happy with letting the market rip in higher education?

[Vince Cable]

Markets are not being allowed to rip—if they were, I would not have mentioned a £7,000 level; we would have simply lifted all restrictions, and there would be no question, as Browne suggested in his report, of extensive conditionality. If the hon. Gentleman is worried about that problem, why did he participate in a Labour Government who introduced variability in fees?