John Denham
Main Page: John Denham (Labour - Southampton, Itchen)(13 years, 12 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr John Denham (Southampton, Itchen) (Lab)
I beg to move,
That this House believes that the Government should publish a White Paper on higher education in England, setting out the full detail of its plans for higher education funding and student finance before asking Parliament to vote on whether to raise the fee cap; is concerned that major questions about how the Government’s market in higher education is intended to work remain unanswered; is concerned that recent graduates will be responsible for repaying loans for up to 30 years because the teaching grant is being cut by 80 per cent.; and urges the Higher Education Minister to bring forward publication of the White Paper.
The motion’s aim is clear: the coalition wants this House to vote to increase university fees before Christmas, but we say that the House should not vote before the Government publish their promised White Paper and before they answer the many crucial questions about how the new policy is meant to work. Can there ever have been a debate like tonight’s? When was the last time that a Minister—a Secretary of State and a member of the Cabinet—came to the House to defend a policy that he drew up on the same day on which he told the BBC that he might not even vote for it? And the hon. Member for Bermondsey and Old Southwark (Simon Hughes) is clearly an advocate for the duvet strategy, as he tells his Lib Dem colleagues, “Let’s pull the bed clothes over our heads and stay there until this nightmare is over.” It is humiliating for the Secretary of State, but it takes the arrogance and cynicism of this Government to new depths. Millions of parents and millions of future students are desperately worried about the cost of degrees, but all the Secretary of State is concerned about is saving face for the Liberal Democrats. Now the Deputy Prime Minister is at it, too; he has written today blaming the National Union of Students for putting students off university. This is the man who, in his own contribution to widening participation, said in April that fees of £7,000 a year would be a “disaster”. He has no shame.
The coalition will make English students and graduates pay the highest fees of any public university system in the industrialised world; they will pay up to £39,000 in fees and maintenance loans for a three-year course. This is the biggest change in university funding since the University Grants Committee was set up in the 1920s, and it will end funding for the vast majority of undergraduate degrees; there is to be an 80% cut. The Government want a crude higher education market in which student choice and student choice alone shapes the universities system. They have used the excuse of a limited contribution to deficit reduction in the short term to bring in a profound change of funding for the long term. But last week the Minister for Universities and Science admitted that £28 in every £100 loaned to students would have to be written off, and the Institute for Fiscal Studies and the Higher Education Policy Institute have both questioned whether the policy will save any money in the long run. Will the Secretary of State admit that, as the Office for Budget Responsibility report published yesterday said, the cost of borrowing to fund student loans will rise from £4.1 billion a year this year to £10.7 billion in 2015-16, leading public sector net debt to increase by £13 billion by 2015?
Simon Hughes (Bermondsey and Old Southwark) (LD)
The right hon. Gentleman and I might have our differences and our arguments, but will he make it clear that the policy that his Government introduced and the policy currently proposed by this Government have in common the same core issue, which is that there are no fees up front? He has not said that clearly so far, and the NUS tried to pretend that it is not the case. If we are going to have a serious debate, it must be on the basis that there is agreement that no student, full-time or part-time, will pay any fees up front. Can he be absolutely clear about that?
Mr Denham
I will come in a moment to the core issue that divides us. The hon. Gentleman is right to say that the fees system that we introduced has no up-front fees—[Interruption.] No, the fees system introduced by the previous Labour Government has no up-front fees. The proposals introduced by this Government do not have up-front fees, but let me explain to him what the fundamental difference is between the policy of the previous Labour Government and that of this coalition Government. We took higher education public funding of universities to record levels, and the fees that we introduced brought extra money to the universities on top of record levels of public funding. The coalition Government’s proposals are based on an 80% cut in public funding to higher education, and the fees that graduates will pay under their plans merely replace the money that has been cut from higher education; they do not generate additional money. That is a massive difference between the policy of this Government and the policy of the Labour party.
Mr Denham
Mr Deputy Speaker, you know me well enough to know that I enjoy debating in the Chamber and I enjoy taking interventions. I am well aware of the huge number of Members on both sides of the House who want to speak, so I will take some more interventions, but just not now. I will make a little progress before I take the hon. Gentleman’s intervention, because I am going to make a point that is relevant to him. These plans have huge implications for the devolved Administrations. The cuts will lead directly to reduced funding for Scotland, Wales and Northern Ireland, making their decisions on university funding far more difficult.
This is an enormous decision with profound long-lasting implications. It must not be taken lightly and it should not be taken without all the relevant information being placed before the public and this House, but that is just what the Government want hon. Members to agree to; they want us to vote for a huge rise in fees while they keep every hon. and right hon. Member in the dark about key details of the policy.
Before I set out the key questions, may I say a few words about Lord Browne’s report? He was asked to write his report by the previous Labour Government and we should be grateful to him and his team for the diligence with which they set about their work. However, Lord Browne had two central presumptions with which we do not agree. First, we do not agree that 80% of university teaching grants should be cut or that the cost of most degrees should fall entirely on the shoulders of graduates, with it being relieved only if after paying for 30 years they still cannot clear the debt. Secondly, we do not agree that the university system should be shaped by student choice alone.
By common consent at home and abroad, England enjoys a world-class higher education system—not just in the disproportionate number of the world’s leading research universities but in the richness and diversity of provision across more than 100 universities and many further education colleges. That did not happen by accident. Successive Governments have been prepared to invest in higher education, but they have also allowed a high degree of institutional autonomy. It is the willingness to trust the academic and professional leadership of universities that has produced the excellence England enjoys today. It should not be lightly set aside.
Mr MacNeil
As the right hon. Gentleman will be aware, the Conservatives and Liberals want to increase tuition fees. Labour introduced tuition fees and the Scottish National party abolished them. On St Andrew’s day, will he tell us whether he wishes that when he was in government he had followed the example of the SNP?
Mr Denham
No, I do not. As I have already said, this party put record levels of funding into English universities and the fees raised extra money on top of that. The strategy that has been followed in Scotland has been one of systematically under-investing in universities, to the long-term damage of the university system in that country. I believe that that is a mistake.
Mr Denham
I would like to make a bit more progress, for the reasons that I have given.
In defending the current system, let me say that it is not perfect. Student choice should be one, but only one, of the means by which it can be improved. On these key points, we do not agree with Lord Browne. There is nothing in the immediate economic circumstance that justifies betting the whole house on a higher education market for which there is neither justification nor evidence.
Of course, the coalition says, “You set up Browne, you should support him.” Let us be clear, however, that the coalition is not implementing Lord Browne’s proposals either. He says that his proposals are a complete package to be taken as a whole, but in significant respects the Government’s plans differ from his. He said that student numbers should rise by 10% over the next three years, that fees should not be capped and that there should be a clawback to deter unnecessarily high fees and that the right to go to university should be determined by academic qualifications. He proposed higher grants for middle income students. On all those things, the coalition has said no to Lord Browne. Last Thursday, at the Universities UK conference, Lord Browne signally failed to endorse the Government’s plans, although he was given every opportunity to do so. The coalition’s proposals are not Lord Browne’s. They are a bastardised, compromised, coalitionised parody of the Browne report.
What are the Government planning to do? Beyond the cuts in teaching grant and the huge rise in fees, it is far from clear. So two weeks ago, I sent the Business Secretary a series of questions that needed to be answered. I copied that letter to every Member of this House. I thank him for replying last night, but if his reply is the best he can do, he would have been better sending it second class without a stamp. He has failed to answer almost every important question. He says in his letter that waiting for the White Paper would be “unfair” to prospective students and their families, but students need to know exactly how they will be expected to pay back their debt. He says that universities need certainty, but they do not just need to know what the fee levels will be. They need to know what the access rules will be, what their responsibilities will be to fund outreach activities, how many students they will be competing for and how many institutions can offer degrees. None of those questions has been answered.
Steve McCabe (Birmingham, Selly Oak) (Lab)
I am grateful to my right hon. Friend. Has he seen the Business Secretary’s comments in the autumn 2010 edition of the Lib Dems’ “Scottish News Extra”? The Business Secretary likened tuition fees to the poll tax and said that they were an unfair weight around students’ necks. He went on to say:
“It surely cannot be right that a teacher or care worker or research scientist is expected to pay the same graduate contribution as a top commercial lawyer.”
Is that not exactly what he is going to do to students here?
Mr Denham
As it happens, I am familiar with the autumn edition of “Scottish News Extra”. My hon. Friend, wanting brevity, left out the best bit. They are still at it. The next bit of the article says:
“The Lib Dems want to scrap tuition fees across the UK”.
They are utterly shameless in what they will say, which can be contrasted with what they will do.
Let me return to the questions that the House has a responsibility to have answered before the vote. Last week, the president of UUK, Professor Steve Smith—I have summarised his speech, I hope accurately—said:
“Students, their families, and our universities, deserve to know the full details of what is planned.
The Government has promised a White Paper. But this has already moved back in its planning from before Christmas to next March. We then expect an HE Bill in 2011. But this is too long to wait for critical details…First, what does the Government plan to do about student numbers?”
He went on:
“The second unanswered question is the future of the teaching grant. How much will there be left in the budget and how will it be targeted…Thirdly, what provision will there be to support programmes such as widening participation?”
The Secretary of State says that he does not want to
“rush to judgement on the sorts of issues outlined in”
my letter,
“such as the future regulatory landscape and the parameters for supply side reform.”
Those issues will determine the market in which fees must be set. They are crucial to the decisions that universities have to make in the next three months. Although the Secretary of State does not want to rush to judgment, he wants this House to rush to judgment on introducing the highest fees of any public university system in the industrialised world.
Clive Efford (Eltham) (Lab)
I am sure that my right hon. Friend is aware that the Liberal Democrats stood at the last election on a policy of abolishing tuition fees over a six-year period. After legislation, that would have taken us well into the next Parliament—way beyond the period that the coalition has set for dealing with the deficit. Does not that demonstrate that their volte-face on tuition fees is purely political opportunism that means that they completely misled the British people during the election?
Mr Denham
I would have more respect for the Liberal Democrat position if they had not signed up to a total change in the philosophy of funding higher education. As I made clear, this is not a short-term measure because of budgetary pressures while the deficit is dealt with. It is the ending of the public funding of most university degrees. Surely if there was one principle that the Liberal Democrats were defending when they made that pledge, it was the idea that undergraduate higher education should be publicly funded.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will my right hon. Friend give way on that point?
Mr Sheerman
Has my right hon. Friend seen last week’s article by Sir Peter Lampl in The Times? He is a man who has done more for higher education than almost anyone in this country and who is totally unbiased in his politics, and he describes this double hammer blow to higher education as a disaster in a sector where we were world leaders.
Mr Denham
I did see Sir Peter Lampl’s article in The Times. It was a devastating critique of what is being proposed and it is all the more significant coming from somebody who supported the Labour Government’s introduction of top-up fees a few years ago. He is not a blind opponent of graduate contributions but somebody who has assessed the evidence of what enables students from poorer backgrounds to get to higher education and believes that this change will be damaging. Let me be quite clear: universities need to plan for 2012-13. Decisions will have to be taken by universities in the early months of next year, but only the Secretary of State’s indolence stands in the way of a full White Paper and draft legislation in January that would allow the House to consider the changes as a whole.
Let me take the issues in turn. How will graduates repay their debt? The Secretary of State said in his letter that
“we have put our costings and calculations in the public domain”,
but I had to submit a Freedom of Information Act request for the models before the Government published a so-called ready reckoner. The Library has now discovered that BIS uses a more complex model that has not been published. The Library told me:
“The ready reckoner version which has been published is a simplified version”.
So much for openness.
For all the talk of fairness, it is clear that middle-income graduates will pay the most. Library analysis shows that graduates repaying fees of £7,000 a year and a maintenance loan who work in middle-income graduate jobs will have to pay back 84% of a whole year’s gross earnings whereas those in the top 10% of earners will pay back less than half a year’s gross earnings. Million Plus reports today that the changes will leave between 60% and 65% of graduates worse off with middle-income earners being hit the hardest.
The coalition says that the threshold for repayment will be set at £21,000, but that is in 2016 prices. In real terms, that is the same as the £15,000 threshold that started in 2006 and is due for review next year. That is not generous: it is sleight of hand. Lord Browne said the threshold should be uprated every five years in line with earnings. The ready reckoner published by the Department assumes that it will be uprated every five years in line with earnings, but the Minister for Universities and Science, the right hon. Member for Havant (Mr Willetts), says only that there will be periodic uprating. I asked the Secretary of State whether that uprating would be laid down in law, but his letter is silent on that point. Even the dubious claims made about fairness depend on regular uprating in line with earnings, but if it is not in law it means nothing. The House must see draft clauses, not vague promises, before it is asked to vote on the fee cap.
Andrew Percy (Brigg and Goole) (Con)
I have always been opposed to tuition fees, including when they were introduced by the Labour Government. Does the shadow Secretary of State recognise that people such as he and I are in a particularly difficult position? We can do one of two things: play this issue for shameless politics or attempt to come up with an alternative. It is his job to ask questions, but when will he tell us his alternative?
Mr Denham
We have made it very clear that there are choices to make about the pace of deficit reduction. We would deal with the deficit but would not choose to make the reckless cuts across public services that the hon. Gentleman supports. There are also choices to make within Departments and we would not cut higher education funding by 80%. Neither would we want a system of graduate repayment that put all the burden on middle-income graduates. There are choices to be made and the hon. Gentleman should consider these matters carefully.
Emily Thornberry (Islington South and Finsbury) (Lab)
Will my right hon. Friend give way?
Mr Denham
I must make some more progress; many Members wish to speak in the debate.
Let me address fair access. The proportion of students coming from lower-income backgrounds has steadily increased, but education maintenance allowances are being scrapped for 600,000 students and Aimhigher is being ended. The ladders of opportunity are being chopped down as we debate tonight. What will happen to the widening participation money that institutions receive because it can be more expensive to support students from non-traditional backgrounds to successful graduation? Will they still get it or will they have to take it from their fees?
The Government want universities to fund outreach. How much of that is meant to come from increased fees, essentially charging students extra for the privilege of being encouraged to go to university? The Government say that universities can charge £9,000 in exceptional circumstances; will the Secretary of State tell the House tonight what “exceptional” means? Will universities that currently do well on widening participation be able to charge £9,000 or will it be only those that do not? Will universities be punished for failing to meet their access agreements?
How will the national student scholarship work? Is the £150 million for one year or for three? Will the Secretary of State tell the House how many students it will cover and at what income level? Will it even cover the students on low incomes who are already in the system? The House needs to know the answers to these questions. If it pays for a free year, will that be just for the most expensive courses in the most expensive universities? If so, why should a student taking a £27,000 course get their fee cut to £18,000 while a student taking a £24,000 course will still have to pay £24,000? Where is the fairness in that? If it is available only for some universities, where is the fairness for poorer students in other places?
We all want the Government to ensure fair access, but until these questions are answered all this is only warm words—and the Secretary of State will not answer. All that he will say is that if the fee cap is raised, he
“would expect to write a letter of guidance to the Director of Fair Access.”
Shuffling off responsibility like that will not do. He must know what exceptional circumstances means—he just will not tell us. But if he wants to hide behind the director of fair access, let him write to Sir Martin Harris today asking him to bring forward proposals in the new year so that the House can consider them before the fee cap comes to a vote.
Universities are over-subscribed, so it matters to students how many places there are. The fees that universities charge will depend on how student numbers are controlled and distributed. The Secretary of State says:
“We will need to continue the type of student number restrictions that the previous government imposed in order to control public spending costs”.
That is an extraordinary response because student numbers are tightly controlled both overall and by institution. If that does not change, they will not get their market. There will be no competition and no incentive to change. It will be the worst of all possible worlds with the highest fees, little or no new money for universities and no change. It makes a nonsense of everything the Government have said and we need to know what they really have in mind.
Will there be new private universities competing with public universities and will they get public funding as Browne proposed? The Secretary of State has said:
“We will set out proposals on new providers of higher education in the White Paper”,
but the House should know before we vote on the fee cap. What about part-time students? Yesterday the Government slipped out an impact assessment which said that
“we estimate that around two thirds of part-time students will not be eligible for fee loans. At the same time, the withdrawal of teaching grant might mean that fees are increased across the board (including for students not eligible for fee loans). This could have a negative impact on part-time participation overall.”
Is this what he means by a fair deal for part-time students? What about universities that train teachers? Their funding will be cut and their MPs will be asked to raise fees before Christmas, but the Department for Education’s proposals on funding teacher education will not be published until after Christmas.
We have no guarantees on fair payments, no guarantees on fair access, no guarantees on fairness for part-timers and no guarantees on student numbers. There are all these unanswered questions but the Secretary of State wants to push the vote through so that the hon. Member for Bermondsey and Old Southwark can come out from under the bedclothes. These questions could all be answered by a White Paper before we vote, but the Business Secretary does not have a good record on White Papers. He promised us a growth White Paper in October, but it did not happen. It was then promised for November, but it did not happen. Yesterday, the Chancellor confirmed what officials had already told the Financial Times—that it was not going to happen because there was nothing to put in it.
With higher education we do not know whether the Business Secretary does not know what to put in a White Paper or does not want to tell us. He could publish the White Paper, produce draft legislation on repayments and have the vote on fees all in January. We all have plans for Christmas, but this is the day for him to tell the House that he cares more about the future of our great universities and our young people than he does about the chance to appear in a celebrity edition of “Strictly Come Dancing”.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Mr Speaker has decided not to select the amendment.
Vince Cable
In the context in which we are now operating—an extreme financial crisis—I am introducing a policy that is a great deal more progressive than the one Labour left behind.
There is a problem, and before I move to the specifics, I shall deal with where the Opposition are coming from, particularly their new leader. Last week, he told the press that he was “tempted” to join the student demonstrations. He has had three days praying in the wilderness, dealing with the devil and deciding whether he wants to succumb to temptation. I do not know whether he has, but if he does, and if he addresses the students, I have been trying to imagine what he will tell them. I think the narrative would go something like this: “We feel your pain. We feel your sense of betrayal by the Government and the Liberal Democrats. We have applied our socialist principles, and we are going to produce a fairer system and lead you to the promised land. What are we offering you? What is our policy? Our policy is delay.” The policy is delay—procrastination. There is a new mantra for the National Union of Students executive: “What do we want?” “Delay.” “When do we want it?” “Well, maybe next year—probably.” That is the alternative on offer.
I shall now deal with the core issue—the right hon. Member for Southampton, Itchen himself identified it: how do we finance higher education? The last line of his motion is the only one with any substance; it relates to money and the 80% cut in the tuition grant. That is a serious issue, so let us try to deal with it.
The right hon. Gentleman was an education Minister so he knows perfectly well that there are three separate funding streams for higher education: student support, research and tuition. When we look at the picture as a whole, we see that at the end of the Labour Government about 60% of all student funding came from the state and the other 40% came from the private sector, from graduates and overseas students. As a result of the changes we propose, approximately 60:40 will become 40:60. It is a mixed economy and the state contribution is being reduced.
The question is whether that number is right. Should it be more or should it be less? If the state is to contribute, where should the money come from? The issue we all have to face is this: when we came into government, and I came into this job, I knew that my predecessors were going to cut the Department that I lead by between 20% and 25%. That was the Institute for Fiscal Studies’ analysis, which has never been denied. It is clear from the logic of not having protected Departments that that would have happened. That was in a Department, 70% of whose funding goes to universities. If the Labour Government were not going to cut the tuition grant for universities, we have to ask where the money would have come from.
I shall set out the range of alternatives. A 50% cut in further education was one possibility; another was a 40% cut in science and another was a 45% cut in the innovation and enterprise budget. We know that the previous Government would not have gone down several of those routes; they committed themselves to increasing the science budget by even more than us. I think the Labour spokesman on science made that very clear at our Question Time last week. The Opposition were not happy that we had maintained the science budget; they want to go even further. At BIS questions, they constantly raise the issue of regional development agency funding—they want to spend more money on that. Where will the money come from? Is it from the cuts they were committed to?
There is a choice. We understand that. What could have happened, although the Opposition have been very quiet on the subject, is that instead of raiding the universities, they could have made drastic cuts in the further education budget. That was the real choice: the further education budget for vocational training for young people who do not go to university. It is almost certain—indeed, it was being put in place when I joined the Department—that cuts in further education were already in train. The right hon. Member for Southampton, Itchen has quite properly spoken of the substantial increase in funding for universities under his Government, but he did not point out that the further education budget did not increase at all. I think it actually fell in real terms. That reflects Labour’s priorities.
Mr Denham
That last point is wrong. Does the right hon. Gentleman accept that this whole argument is a farrago of nonsense because it is based on a premise about the level of the BIS budget that is wrong, as has been set out clearly by my right hon. Friend the shadow Chancellor—[Interruption.] I do not want to prolong the intervention. The problem is that the coalition Government insist on denying what they are constantly told. The vote on fees will be a vote not on the policy of the Opposition but on his policy. Why will he not answer the questions that I properly put this evening? Why is he spending all his time doing anything other than answering the questions that I put?
Vince Cable
I will explain in a few minutes why I do not think delay is the sensible option. The right hon. Gentleman acknowledges, and his Opposition motion states, that this is essentially an issue about money and priorities. That is why I am persisting with the question.
It is possible that the Labour Government were not intending to cut further education. There were other options available. They could have cut universities without cutting the tuition grant. How could they have done that? They could have done so by drastically reducing the number of students, a course of action that, I believe, the National Union of Students prefers. But clearly it would be wrong, and the right hon. Gentleman knows perfectly well from experience and research that increasing the number of university students is one of the best ways of promoting social mobility. So I assume that that is an option that the previous Government would not have taken.
We are left with one other basic option. What we could have done—it would have been an easy way out and we would have avoided many of the difficulties that we are having politically—is to have taken the money out of the budget and let the universities get on with it, not raised the cap. The student representatives might well have applauded that. We would have avoided all the difficulties that we are discussing tonight, but the effect would, of course, have been to starve the universities of funding, and our world-class universities would have been undermined.
Given the funding constraints, which the right hon. Gentleman faced as well, we had no alternative but to ask well-paid graduates to make a contribution later in life to the cost of university education.
Vince Cable
No, I am not giving way again.
The report also suggested that caps should be lifted without appropriate conditions for universities, but we are going to introduce those conditions. Let me explain them. We have responded in the circumstances that I have described to the need to make financial decisions; we have produced an outcome that a Labour Government would almost certainly have followed in very similar terms; and we have produced a policy that is more progressive than the one we inherited and better than the Browne report.
The right hon. Gentleman poses a question about delay. What are the merits of delay as opposed to proceeding immediately? There are several reasons why it is desirable to make progress. First, the Browne commission was itself an extensive consultative process, and the right hon. Gentleman knows because he helped to set it up. There was substantial discussion and public hearings, and he probably deserves some credit for having established an extended process that was so open. Many of those debates have already been had, therefore, and the evidence is available on which to make decisions.
The second point is a practical one, which I am sure that the right hon. Gentleman understands. If the cap is going to be introduced for the academic year 2012-13, it has to be introduced quickly. There is a practical reason, and that is why we have to proceed, but there are a series of issues—he has listed some—on which we clearly need to consult and reflect further. He quite rightly says that we need more detail on the national scholarship scheme, and we have suggested that an arrangement could be used to benefit students from low-income families by providing free tuition through, let us say, the first year of their university career.
There are different ways of approaching the problem, and we would like to talk to the National Union of Students and to university bodies about the best way of giving incentives through the scholarship scheme to low-income families. The current arrangements do not work well, as the right hon. Gentleman knows because he presided over the policy for some years. We have not achieved the level of participation in higher education by families from that background that we should have. After his period in office, 57% of all pupils in higher education came from advantaged areas, and only 19% came from disadvantaged areas. Surely, after the failure of programmes such as the bursary scheme, it is right that we reflect on and consider the best way of using Government money to achieve higher participation.
The right hon. Gentleman asks also about the access conditions, and again it is surely right that we consider all the evidence available. I will write to the regulator about how the situation can be improved, but, if the right hon. Gentleman’s party has anything to tell us from its experience in government, I shall be very interested to hear it, because his Government set up the regulator six years ago, I think. As a result of that experience, the relative position of low-income students trying to get into the top third of universities has deteriorated. Their conditions of access failed as a matter of policy. Surely it is right that we consider further how we can make the policy work, and we shall do so.
Mr Denham
Before the right hon. Gentleman moves further beyond the Browne report, I must note that he referred to one issue that was at the core of the report: the uprating of the threshold. He and the Minister for Universities and Science have not yet said whether Browne’s proposal to uprate the threshold every five years in line with earnings will be made a statutory commitment. The Secretary of State has published figures that, he claims, show the system to be progressive—based on uprating by earnings every five years. Will he now tell the House whether that will be a statutory commitment?
Vince Cable
I can confirm that it is our firm intention to do exactly that. Whether the measure requires embedding in a statutory instrument is a matter on which we will seek advice, but I am very confident and very happy to have that commitment—the uprating by earnings of the threshold—made firm by law. How it is done—through a statutory instrument or subsequently—is a matter on which we clearly need advice. The right hon. Gentleman is quite right to ask the question, but he should perhaps remind Labour Members that he had an opportunity to uprate thresholds and never did so when in government, despite the fact that his Government’s financial position was more comfortable than the current one.