Higher Education Reform

Laura Trott Excerpts

Monday 4th November 2024 Commons Chamber

[Laura Trott (Sevenoaks) (Con)]

I thank the Secretary of State for advance sight of her statement.

The Budget last week declared war on business and private sector workers, and on farmers, as we have just heard. It seems that today the Secretary of State wants to add students to that list. Not content with pushing up the cost of living for everyone with an inflationary Budget, and pushing down wages with a national insurance increase, we are now in a situation whereby students will suffer from the first inflationary increase in a number of years, at a time when they can least afford it.

Yet again, there was no sign of that in the Labour manifesto. Indeed, in only 2020, the Prime Minister made scrapping university tuition fees a centrepiece of his leadership campaign—perhaps we should start putting sell-by dates on his statements. But it is not just the Prime Minister: in July this year, at the time of the King’s Speech, the Secretary of State said that she had “no plans” to increase tuition fees, and yesterday the Chancellor said that there was

“no need to increase taxes further.”

Yet what is happening today apart from a hike in the effective tax that graduates have to pay? Students have not had a chance to prepare for that rise. They will have fairly expected, based on all the statements that I have mentioned, that the last thing a Labour Government would do in office is put up tuition fees.

We have some of the best universities in the world here in the UK, but we need to do much more to reform the system and make it better and fairer for students and universities by ensuring that courses provide students with an economic return, helping universities to harness the growth potential of the innovations that they foster, and ensuring that students and lecturers are free to express and debate their views. We are willing to work with the Government on all those things. It is also right that we consider university funding, but pushing up costs for students at short notice in an unreformed system will lead to students up and down the country feeling betrayed.

How much of the increase will be absorbed by the national insurance increase for employees at universities? Does the Secretary of State intend to increase fees every year, or should students expect this to be the only increase? What is the impact of the change on public finances, and has the Office for Budget Responsibility been consulted? Why was the change not announced in the Budget? How much longer will it take the average borrower to repay their tuition fees as a result of the change? And why was Labour not up front about the measure in its manifesto?

In June 2023, the title of an article written by the now Secretary of State proclaimed:

“Graduates, you will pay less under a Labour government”.

Well, it turns out they will pay more—more broken promises.

[Bridget Phillipson]

Amid the faux outrage that we just heard from the shadow Education Secretary, I did not hear whether she will support the measure. She, like her party for many months during the election campaign, had nothing to say other than doing down the ambition and aspiration of young people and their families who want the opportunity to go on to university. The Conservatives went into the last election determined to ensure that fewer young people had the chance to go to university. That is shameful, and it is something that Labour will never back. Young people with talent and ambition, and their families, want a Government who recognise it.

It is little wonder that, at the ballot box on 4 July, the right hon. Lady’s party got a clear message. It is just a shame that in the time since, there has been no reflection on why that was. The Conservatives have learned nothing from their years of failure. They ducked the tough decisions for years. I make it absolutely clear to the House that I do not take any pleasure in this decision—it is not one that I want to take—but I am determined to secure the long-term financial sustainability of our world-leading universities. She is right to recognise their success. They are beacons around the world, and that necessitates tough decisions—decisions that she and her colleagues in the Treasury ducked year after year. They put a Conservative peer in to chair what should have been an independent regulator. They picked fights with the sector time and again, and over the course of 10 years, the Conservative party never had a serious plan to reform the higher education sector. I am determined to bring that reform, and in the months to come we will set out further plans to reform efficiency, access and participation for our young people.

To answer the precise questions that the right hon. Lady asked, as we lay legislation before the House, we will publish an impact assessment alongside it.