Tuition Fees

Debate between Jonathan Edwards and Hugh Bayley

Tuesday 30th November 2010 Commons Chamber

[Hugh Bayley (York Central) (Lab)]

Spending money on universities is not wasteful or unnecessary public expenditure. We need universities because they drive economic growth through the skills they impart to students and the new knowledge they unlock through research. The UK has some of the best universities in the world. One of the reasons the UK experienced stronger economic growth over the past decade than other countries in the European Union is that we have better universities and so a better knowledge base for our businesses.

York has two exceptionally good universities, and they have helped to drive economic growth in the local economy. Between 1997 and 2009, the number of jobs in York grew from 44,000 to 60,600—a 38% growth, far outstripping the national or regional average. Many of those jobs are high-tech, high-skill jobs, but they bring lower-skill jobs in their wake. The importance of universities is not lost on our economic competitors. State investment in universities grows apace in India, China and many other countries. Indeed, other OECD countries, which, like the UK, are having to cut their public expenditure, are also, almost without exception, increasing spending on higher education because they know that it will aid recovery.

Only the UK and Romania are cheese-paring their universities. I have first-hand experience of cheese-paring, because I was an academic at the university of York in the late 1980s and early 1990s, when the last Conservative Government cut funding. Two years ago, Chris Patten, a former chairman of the Conservative party, made a speech in which he said:

“In just over a decade we doubled the number of students and halved the investment in each”,

which led to

“poorer pay, degraded facilities, less money to support the teaching of each student”.

I did not sign the National Union of Students pledge before the last election, even though I am a former vice-president of the NUS, because I knew that universities badly need extra money. I thought that a modest increase in what students pay after graduation would have been fair had there also been an increase in Government funding, but I cannot support the Government in increasing fees by some £5,000—almost £6,000—and cutting the tuition grant to universities by 80%.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Does the hon. Gentleman welcome the announcement made by the Welsh Government that fees will not be at full or near-full cost for Welsh-domiciled students, which achieves one of the key pledges of the One Wales agreement between his party and mine?

[Hugh Bayley]

I have not seen that statement, but I will look at it closely.

I cannot support the Government’s plans because they are reducing state funding for universities. That is a betrayal of the country’s future and a betrayal of the future of this country’s young people, especially young women. The Liberal Democrat manifesto pledged:

“We will…Tackle the gender gap at all levels of scientific study and research”.

The Library’s research paper on higher education funding, published on 23 November, reveals that women make up more than 80% of the bottom half of graduates by lifetime income and just over 1% of the top 30%. Yet the same paper says that average repayments as a proportion of lifetime income are more than twice as much for the bottom 50% as for the top 10%. That reveals how regressive and unfair the Government’s proposals are to women.

Under Labour, higher education funding increased by 25% and undergraduate numbers increased by 20%. The number of young people from York going to university for the first time increased from just over 2,000 in 1997 to more than 3,000 in 2008. York’s two universities received more than £150 million in capital from the Government between 2000 and 2010, rising from £500,000 a year at the start of the period to £28 million at the end. Now that legacy is being swept away by Lib Dem and Conservative spending review policies. It is no surprise that there is anger on the streets of this country—the big society seems to be finding its voice.