Tuition Fees

Rob Wilson Excerpts

Tuesday 30th November 2010 Commons Chamber

[Mr Rob Wilson (Reading East) (Con)]

I welcome Lord Browne’s report and the six principles on which it was based, in particular those of increased student choice and of everyone having the potential to benefit from higher education, no matter what background they come from. It was an excellent piece of work, and was set up by the previous Labour Government, but it has apparently been rejected by Labour in favour of a graduate tax—although I have difficulty understanding what the Labour party’s policy is, because it seems to be using a blank sheet of paper, and I am not sure what is on it at any given time.

Lord Browne specifically rejected a graduate tax, and the case against a pure graduate tax is damning. The shadow Secretary of State complained that graduates will be repaying loans for up to 30 years, yet they would pay his graduate tax for the rest of their working lives, resulting in some graduates paying the cost of their courses many times over. In addition, most graduates would have to repay separately any debt incurred for living costs while studying.

There are serious questions about the ability of a graduate tax to produce the necessary revenue to fund higher education. Faced with the record budget deficit left by Labour, a graduate tax would mean the Government having to spend an additional £3 billion a year for at least the next five years. According to the Browne review estimates, a graduate tax would not produce enough revenue to fund higher education until 2041-42. Importantly, a graduate tax would not give universities any additional incentive to focus on the quality of the teaching or student experience that they offer. The Browne review concluded that

“the graduate tax significantly weakens universities’ independence”

and that their relationship with students would matter “much less”. That cannot be the modern, forward-looking, 21st-century higher education system that we want for this country.

The shadow Secretary of State complained recently, as he did tonight, that the Government’s reforms will

“create a market in which solely student choice, shapes the size of universities and courses on offer.”

I wonder what he fears from a model under which students are fully empowered and can make informed decisions about the type of higher education that is best for them. Labour has always disliked personal choice because it instinctively prefers command and control structures, operated from the centre. Is the Labour party really suggesting that successful and popular universities should continue to ration places, forcing ambitious students to settle for their second or third choice? Universities are at their best when they are not dependent on Government for too much of their funding. Without some sort of market, there is no pressure for universities to improve their teaching quality or their student support to attract more students.

[Mr Lammy]

Will the hon. Gentleman give way?

[Mr Wilson]

No, I will not because I have only one minute and 45 seconds left.

I say to my right hon. Friend the Secretary of State that the reforms must not be half-hearted. If we are continually to drive up quality throughout the sector, there must be no student numbers cap for individual institutions. We must not be in a position under the new system where the state steers students into university courses that they do not really want to do and forces them to settle for second best. In the past, that has been done for the best, if misguided, intentions, but it is wrong to keep underperforming universities in their current form at the expense of the quality of the higher education that the student receives.

Facing up to the reality of higher education finance involves very hard choices, which the Opposition do not seem to want to take. It also provides a great opportunity to reform our university system for the benefit of all students and society in general. Faced with higher contributions after graduation, students should demand more from their university. Prospective students will rightly think much more carefully about their choices and demand more information about their university, such as its teaching quality, student support and the employment destinations of other graduates. That will force universities to ensure that their courses really offer value for money and provide evidence of that fact. Once some universities start to account for their performance, if others fail to follow suit students and parents will ask what they have to hide. That will be an incentive for universities to become more innovative, for example by offering shorter degree courses.