Higher Education Funding

James Cartlidge Excerpts

Wednesday 11th October 2017 Commons Chamber

[Joseph Johnson]

We look carefully at the student finance system all the time. It is constantly under review and we have taken account of the views of colleagues in Parliament, parents and students in coming to the conclusion that we wanted to make the changes we announced last week in Manchester, so it would be unfair to say we are not listening and not responding appropriately. We always keep the system under review to ensure it remains fair and effective, and balances the interests of students and taxpayers appropriately. We will continue to do so in the weeks ahead.

[James Cartlidge (South Suffolk) (Con)]

I very much welcome the increase in the threshold, but in all this focus on finance is there a danger that we forget the whole purpose of going to university, which is to obtain a high-quality education? Will my hon. Friend assure me that whatever reforms he undertakes will not undermine the ability of universities to provide the highest-quality education possible, but that, on the contrary, they will drive universities on to deliver even higher standards?

[Joseph Johnson]

My hon. Friend is absolutely right. The more interesting part of this debate is about ensuring universities deliver value for money, great teaching and fantastic research with the resources the Government make available to them. In the autumn statement, we increased research spending in our system by the largest amount in 40 years. We should celebrate that fact. We have increased per student per degree funding by 25% since 2010-11. We should be celebrating that fact, because it is enabling our universities to do the great job we need them to do. Through the teaching excellence framework, we are holding them to account more tightly than ever before for the value for money we need them to deliver.

Tuition Fees

James Cartlidge Excerpts

Wednesday 19th July 2017 Commons Chamber

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I beg to move,

That this House has considered the Government’s decision to increase tuition fees implemented by the Higher Education (Basic Amount) (England) Regulations 2016 (S.I., 2016, No. 1205) and the Higher Education (Higher Amount) (England) Regulations 2016 (S.I., 2016, No. 1206).

Thank you, Mr Speaker, for granting this emergency debate. It is a shame that it has been necessary when we have a First Secretary of State who called for a national debate on tuition fees, a Brexit Secretary who says that this House always votes on statutory instruments and a Justice Secretary who, when Leader of the House, actually accepted the need for a debate and a vote. Of course, that was before the election; 100 days later, this weak and wobbly Government do not even trust their own Back Benchers with a vote on their own policies.

The Higher Education and Research Act 2017, which the Education Secretary and the Minister for Universities, Science, Research and Innovation took through this House, is very clear on the matter. Paragraph 5 of schedule 2 states that the upper limit of fees can rise only when

“each House of Parliament has passed a resolution that, with effect from a date specified in the resolution, the higher amount should be increased”.

Will the Minister guarantee that no students will have to pay the higher fees until both Houses have passed such a resolution allowing it, and will he tell us when the votes on these resolutions will take place?

The Minister seems to be one member of the Government who does not want this vote, judging from his Twitter feed last night. He said that plans to raise fees were first outlined in July 2016, and that we have since had extensive debate. Perhaps he forgot that the plans were announced on the last day before summer recess last year, and were snuck out as one of 30 written statements on that day. The statutory instrument was then put before the House just before Christmas last year. Not long after that, the Opposition prayed against the measures, yet despite repeatedly pushing for it we were not given a debate. As the Minister said, the regulations came into force on 6 January.

[James Cartlidge (South Suffolk) (Con)]

On the subject of being weak and wobbly, will the hon. Lady confirm whether it is still Labour policy to pay off all £100 billion of the outstanding student debt—yes or no?

[Angela Rayner]

I do not know how many times I have to explain this to Conservative Members before they finally understand. A cynic might say that they are wilfully misrepresenting my party’s policy. We have never said that we would simply write off all existing debt. Conservative Members refer to comments made by my right hon. Friend the Leader of the Opposition, and I remind them that he said we would look at steps to reduce or ameliorate the debt burden. Perhaps that confused Conservative Members, because their Front Benchers have not done that in seven years. For instance—

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[Angela Rayner]

What I promise I will do for any of the hon. Members in this Chamber and any of their constituents who potentially were misguided is ask them to refer to our website, where they can get a copy of “For the many not the few”, which highlights our national education service. That is a huge number of pages longer than the policy in the Conservative manifesto, which was, quite frankly, to take the food from children’s mouths. That was rejected by the people of this country quite outstandingly.

There is an alternative—one that was outlined by the Labour party at the last general election. We pledged to end university tuition fees so that future generations will not be burdened with debt simply for seeking an education. We would fund that by taxing only the wealthiest individuals and the biggest businesses, rather than forcing only those graduates unfortunate enough to be £50,000 in debt to foot the bill. By contrast, the Government’s system will still cost the taxpayer nearly £6 billion a year in the long term. We would also bring back student maintenance grants to support students from low and middle-income backgrounds with their living costs, reversing one of the Government’s most regressive decisions.

There is someone in the Conservative party who for a long time agreed with that policy. There was a Tory shadow Education Secretary who said that the removal of the maintenance grant would

“far from widening access, narrow it.”

She told her party that it needed to

“show we care about the student who wants to go to university, but can’t afford tuition fees.”

She then helped to write, and stood on, a manifesto that would have scrapped tuition fees altogether. She is now the Prime Minister. But she is now the one narrowing access, not widening it. She is showing students that she does not care, and is hoping that her manifesto promises can be disposed of as quickly as Nick and Fiona were.

To think that on Monday the Secretary of State accused me of peddling “snake oil propaganda”. I guess that is her specialist subject. She promised to protect school budgets in her manifesto in 2015 before cutting them in real terms. She pledged to give 30 hours of free childcare to working parents only to tell tens of thousands of them that they do not earn enough to be eligible. Now she is breaking every single promise the Conservative party has made to students.

I have told the Secretary of State again and again what could be done to address the existing debt burden. I repeat that she could look again at the extortionate interest rates on students, due to rise to more than 6% at a time when the Bank of England base rate is 0.25%. She could keep the promise originally made to students to raise the repayment threshold on their debt in line with average earnings. She could look again at the unacceptable levels of disadvantaged students dropping out of university, and give them proper maintenance support.

All of those things would reduce the burden of debt on today’s graduates, and most of them would not cost the taxpayer an extra penny. The 2015 general election feels like a long time ago, but I remember a time when the Conservatives stood on a manifesto that said that

“we as a nation should not be piling up and passing on unaffordable levels of debt to the next generation.”

But that is exactly what the Government are doing. Increasing tuition fees again will simply leave more and more young people with debts they will never repay. Labour believes that is the wrong thing to do. Conservative Members may disagree, and that is their right, but what is not right is to deny this House the chance to decide.

Tuition fees are an important issue, but they are not the main issue before us today. The question before us today is much more fundamental. It is about trust in our Government and ultimately our democracy. Frankly, if Ministers cannot keep their promises to us, why should anyone else believe them?

[James Cartlidge]

On a point of order—

[Mr Speaker]

I hope that this is a point of order, rather than a point of frustration.

[James Cartlidge]

The point of order is that the Leader of the Opposition said to the NME—

[Mr Speaker]

Order. The hon. Gentleman must resume his seat. It was a nice try, and he is an industrious fellow, but that is a matter of debate. He cannot ask the Chair to adjudicate on who said what when, especially when it was outside the Chamber. I appreciate his assiduity, but he needs a rather better disguise than that.

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[Joseph Johnson]

I am puzzled by that intervention. Our per-university, per-student funding has risen by 25% as a result of our reforms. If the hon. Gentleman wishes to read the report published last week by the Institute for Fiscal Studies, he will see that, on a per-student basis, our universities, per degree, are better funded than they have been at any point during the past 30 years.

[James Cartlidge]

May I pursue the logic of that point? Is it not the case that if these fee increases do not take place, we will effectively be cutting spending on universities? Should we not be fighting cuts and opposing Labour’s plan to cut spending on higher education?

[Joseph Johnson]

Indeed. Our system of student finance is enabling our universities to be funded sustainably. As I have said, per-student, per-degree funding is up by 25%, but we will put all that at risk if we move anywhere near Labour’s policy platform.

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[James Cartlidge]

My right hon. Friend is making an excellent argument, but does it not focus his attention on the repayment threshold? In a sense, a higher threshold enforces the very point he is making. If people get the higher salary, fair enough; they repay their loan. If not, they do not repay it anyway.

[Robert Halfon]

I have a lot of sympathy with my hon. Friend’s point.

We need to look carefully at the salaries of the senior management of universities. Something is going wrong if there are significant increases in the salaries of top management but poor destinations for graduates. To be honest, I do not mind what management figures earn if every single person who leaves that university gets a good job at the end. If they do not, I cannot understand why some vice-chancellors receive huge increases in their pay but fail to provide good outcomes. I am not going to name those universities today, but we need to take a hard look at this.

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[James Cartlidge (South Suffolk) (Con)]

It is a pleasure to be called to speak in this debate and a great pleasure to follow the hon. Member for Blaydon (Liz Twist). I congratulate her on her maiden speech, which was very moving and powerful, particularly in relation to suicide. We all share her sentiment and hope to see greater progress on that. It is a terrible tragedy that so many still choose to take their own lives.

Having stood on many a football terrace, I am familiar with the Blaydon anthem, but I do not think that the edited lyrics to which I have been subjected are repeatable in this Chamber. I welcome the hon. Lady to the House.

This debate is on an important subject. Having intervened earlier on the shadow Secretary of State, the hon. Member for Ashton-under-Lyne (Angela Rayner), I have great sympathy for her. She has maintained her composure in the face of her party’s policy wobble over historical student debt, but, if we look at what the Leader of the Opposition said to the NME prior to the election, we cannot form any conclusion other than that he wished to wipe out historical student debt. He said that he would “deal with it.” Those were his words. What other conclusion could we form?

The politics of this are quite cynical. Talking about helping students means helping a large number of people, but it is a limited base. Spreading policies to all graduates with historical student debt, however, means appealing to a vast number of people, so to renege on that so clearly is disappointing and deceptive.

Equally, we all have to accept that people are worried about levels of student debt. I have four children and worry about them, should they ever get to university, racking up enormous debts. Who, as a parent and a human being, would not be concerned about that? However, we have to think rationally about the issue.

There are measures that can be used to ameliorate the situation. My right hon. Friend the Member for Harlow (Robert Halfon), the Chairman of the Education Committee, mentioned interest. Of course, student debts are packaged and bought on the basis of securitisation. I want to understand more about how that works, including the redemption penalties and whether it is possible to change those contracts without huge cost to the taxpayer. We would all benefit from knowing more about that. Perhaps my right hon. Friend’s Committee could take evidence on it.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

My hon. Friend makes a strong point about the level of interest on debt and securitisation. He will accept that, because of the high proportion of that debt that is written off, it is in effect a grant, so the interest rate will need to be higher to make it attractive to people who want to take on that security.

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[James Cartlidge]

I am afraid and suspect that that is true. I think that it is also the case that the higher interest rate enabled the Government to increase the low threshold under Labour to the higher threshold of £21,000 under us.

On the subject of the cap—this goes back to my intervention on my right hon. Friend the Member for Harlow—if we are able to raise the threshold at which people pay, that is a fairer deal for the student because it ensures greater quality. They repay when their earnings reach a point where we think it is fair for them to start doing so. I think we should look at that, but it is not cheap. My understanding is that if we raise the threshold to £25,000, it will cost almost £2 billion a year in lost income to the Revenue. That is not a minor detail.

We really have to make a decision, as a country and a Parliament, about our priority. What is the most important thing that we want from higher education? Why do people go to university? In my view the most important thing is to have the highest-quality education possible—the best quality degrees. That is what matters. We need to think about the upside, which is that someone who goes to university could earn £250,000 more in their lifetime—the figure is often far more than that—than someone who does not. In fact, to access highly paid professional jobs people need a degree.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

Was my hon. Friend as interested as I was to discover that the uplift is £250,000 for females and only £170,000 for males? Both are significant figures, but is it not interesting that the larger figure is the uplift for females who go to university?

[James Cartlidge]

I am always interested in female uplift. The striking thing is that, regardless of whether they are a man or a woman, university is an incredible opportunity for individuals to improve their standing and their circumstances and to get a career, so that they can afford a home and to raise a family. That is the upside.

To me, the most important thing is the quality of the degrees. I worry that if we go back to a free system, the quality of degrees will not improve but fall, partly because the funding will fall. We will go back to rationing the funding and the places. If we are honest, will the students who go to university when it is “free” take their education as seriously as those who go when it is not? Of course, it is not free. That is the great delusion. As my hon. Friend the Member for Solihull (Julian Knight) said, it is not free; it is just that somebody else pays, rather than the beneficiary. The whole of society pays.

The money has to come from somewhere. The Labour party will supposedly pay for it by raising corporation tax. Never mind the fact that all the evidence shows that by cutting corporation tax, we are raising the revenue to the Exchequer. This will not happen without a cost. [Interruption.] The hon. Member for Wythenshawe and Sale East (Mike Kane) chunters about the Laffer curve—he’s having a laugh about the Laffer curve! If Labour Members studied this, they would realise the reality. The OECD figures show that the predicted tax take from corporation tax when it goes to 17% will be the same percentage of GDP as in 2010 when it was at 26%.

The point is that there is a downside of going back to free education. We have to pay for it in some way. What we need is the upside, and the upside is having a competitive graduate system so that our graduates have the best quality qualifications.

I want to conclude with the big picture. The big picture is that people who go to university now are heading into a much more competitive labour market—a globalised, international labour market. Whatever the effects of Brexit are, that will not change. When our children go to university, they will be up against it. They will be up against graduates from India and all over the world. We need to give them the best weapons in their hands—the best tools with which to navigate their way through the challenges of life—and that means getting the best possible qualifications. I therefore urge my hon. Friends to consider the importance of quality.

Finally, I will remark on a very welcome measure that my hon. Friend the Minister for Universities, Science, Research and Innovation has brought in. As I understand it, universities will be able to raise fees to the maximum level only if they can demonstrate that their teaching is of the highest quality. We are moving towards a quality-based scheme. I very much welcome that and we should all support it.

European Union (Approvals) Bill

James Cartlidge Excerpts

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[Margot James]

The goal of the agency is to provide expertise on fundamental rights to EU institutions, member states and countries seeking accession when implementing EU law. The specific tasks of the agency are: to analyse and share information on fundamental rights in the European Union; to carry out scientific research and surveys on fundamental rights issues; to formulate opinions on specific topics, either on its own initiative or as requested by EU institutions; and to increase awareness on fundamental rights in the EU.

Albania was granted EU candidate status in June 2014. The UK supported the awarding of EU candidate status on the condition that Albania redoubled its reform efforts, with particular focus on justice and home affairs, especially tackling organised crime, corruption and illegal migration. The UK welcomed Albania’s progress in adopting legislation towards a judicial reform package in July 2016. Albania must now fully implement the judicial reform package as soon as possible, so that it can underpin other reforms.

Serbia was granted EU candidate status in 2012 and accession negotiations were launched in January 2014, with the first four negotiating chapters opened during 2016. The UK continues to support Serbia on its reform path, including through funding projects in Serbia.

[James Cartlidge (South Suffolk) (Con)]

Will the Minister comment on whether Serbia’s membership of the agency would have any impact on the pursuit of war crimes in Serbia, as part of its effort to increase human rights?

[Margot James]

I cannot comment specifically on the likely impact on the treatment of war crimes in Serbia, a subject about which the Foreign Office is extremely concerned—as, I presume, is my hon. Friend—but I think it can only be a mark of progress for Serbia to be admitted in the way that this decision enables it to be.

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[Bill Esterson (Sefton Central) (Lab)]

The Bill was included in the Queen’s Speech. The background notes refer to helping to grant Serbia and Albania observer status at the EU’s Fundamental Rights Agency, and an agreement for enhanced co-operation between competition regulators in the EU and Canada. However, I will not be the only one who was somewhat surprised that it was chosen as the second Bill to be given a Second Reading in the new Parliament. Why was it given such a high priority, given what might have happened, and given what was, at one point, in the Conservative party manifesto?

We could have suggested some alternatives. For instance, the Government could have addressed the pay cap. Members of the Cabinet and members of the Conservative party are now doing that, and quite an argument seems to be going on, but we could have been debating the subject in the House today.

[James Cartlidge]

The hon. Gentleman will know that the civil war in Yugoslavia was an horrific, scarring experience for our whole continent. We should not belittle it by underestimating the importance of those nations’ reaching our level in terms of human rights and so on.

[Bill Esterson]

Of course the hon. Gentleman is absolutely right, which was why it was right for the Bill to be in the Queen’s Speech. I was merely questioning why it had been given such prominence. Given that it consists of only two lines, why was something weightier not presented first?

I have mentioned the pay cap, the turmoil in the Conservative party, and the agonising over whether public servants should be given a pay rise. There is also the debate about tuition fees, the debate about whether there should be more police and firefighters—

Corporate Governance

James Cartlidge Excerpts

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Greg Clark]

I do not agree with that approach. It is right to have transparency and right that companies engage with their employees and make the case both to shareholders and to the workforce for the choices that they make. However, given our diverse range of companies and industries, it would be a mistake that would be bound to hamper their success if we, in the Government or in this House, were to specify precisely what people should be paid.

[James Cartlidge (South Suffolk) (Con)]

The second question that the welcome document asks relates to improving links between workers and boards. One possible route would be to encourage more employee share ownership. The evidence shows that that encourages productivity and, at a time of pension and housing crises, it would give people a stake in the future and a saving. Above all, it would make them feel that they are part of the business for which they are working.

[Greg Clark]

I completely agree with my hon. Friend. The times when we had very high levels of shareholder participation were ones when there was an enhanced understanding of the importance and role of business. I will take his recommendation seriously and take it forward.

Nissan: Sunderland

James Cartlidge Excerpts

Monday 31st October 2016 Commons Chamber

[Greg Clark]

I thank the hon. Gentleman for his words. I do believe in being active and vigorous and in meeting companies and understanding the challenges that they face; I make no apology for that. My whole ministerial team will be active in securing investments for this country.

[James Cartlidge (South Suffolk) (Con)]

This fantastic news makes us proud of British industry. Does my right hon. Friend agree that many factors make this country attractive to companies such as Nissan? A key one is our competitive rate of corporation tax. Will he ensure that in the coming autumn statement, our rate not only stays competitive, but perhaps gets even more competitive?

[Greg Clark]

My hon. Friend needs to direct that request to the Chancellor—I will pass it on when I see my right hon. Friend in Cabinet tomorrow—but he is right to remind the House that there is a range of attributes and strengths that makes this country attractive to overseas and domestic investors. It is important that, across the whole range, we get them right.