CBI report: "Don't study arts at Uni! Also, higher fees are putting students off."

CBI disagree with Michael Gove over impact of higher tuition fees

Today's CBI report (pdf) into education and skills in the workplace is largely focused on relations between employers and schools:

51 per cent of the surveyed provided careers advice. Despite this, 68 per cent said that the general quality of advice was still not good enough. More than 60 per cent of respondents said they would like to play a greater role in delivering careers advice.

In other areas, more than 70 per cent of employers provided work experience to students and around 29 per cent of them acted as governors.

As a result, it has been mostly reported as an attack on schools. See, for example, the Telegraph's story, headlined "School leavers 'unable to function in the workplace'":

Figures show that 42 per cent of companies now stage lessons in core subjects because young people are unable to function in the workplace.

The Confederation of British Industry said that too many school leavers struggled to write to the necessary standard, employ basic numeracy or use a computer properly.

Almost two-thirds of business leaders also said that teenagers were failing to develop vital skills such as self-management and timekeeping at school.

But one of the most interesting chapters is instead the one focusing on university graduates.

Some of the data will be a blow to students studying... well, anything other than science, technology, engineering or maths (STEM), really:

Starting salaries also exhibit a marked pro-STEM bias, with just three types of job showing an increase in earnings over the last year: legal, scientific and engineering.

There's also a slight embarassment for the government buried in the chapter. Back when the notorious rise in tuition fees was first being talked about, in November 2010, the goverment's line was clear. Michael Gove, for instance, told the Today Programme:

I believe that [higher fees] won't put off students. They will make a rational decision on the benefits that accrue to them [from going to university].

19 months on, and with the first cohort just about to head to university, it is clear that CBI members don't share the government's optimism. A third of all respondents are planning to increase the number of routes through which school leavers can enter their business without having to go to university. Among the largest employers (with moret than 5,000 employees), two thirds are expanding those routes.

In addition, 63 per cent of employers expect the graduate market to change substantially in the coming years, and are preparing for a number of different impacts:

At least a third, and up to two thirds, of businesses believe what most people believe: that higher tuition fees have likely put students off applying to university. While this is certainly true for this years intake, we'll only know the full story once the applications for the 2013 cohort are released. If they stay low, it could be a black eye for the government.

Students receive their A-level results. Everyone knows boys are not allowed to jump in the air. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Richmond is a wake-up call for Labour's Brexit strategy

No one made Labour stand in Richmond Park. 

Oh, Labour Party. There was a way through.

No one made you stand in Richmond Park. You could have "struck a blow against the government", you could have shared the Lib Dem success. Instead, you lost both your dignity and your deposit. And to cap it all (Christian Wolmar, take a bow) you self-nominated for a Nobel Prize for Mansplaining.

It’s like the party strategist is locked in the bowels of HQ, endlessly looping in reverse Olivia Newton John’s "Making a Good Thing Better".

And no one can think that today marks the end of the party’s problems on Brexit.

But the thing is: there’s no need to Labour on. You can fix it.

Set the government some tests. Table some amendments: “The government shall negotiate having regard to…”

  • What would be good for our economy (boost investment, trade and jobs).
  • What would enhance fairness (help individuals and communities who have missed out over the last decades).
  • What would deliver sovereignty (magnify our democratic control over our destiny).
  • What would improve finances (what Brexit makes us better off, individually and collectively). 

And say that, if the government does not meet those tests, the Labour party will not support the Article 50 deal. You’ll take some pain today – but no matter, the general election is not for years. And if the tests are well crafted they will be easy to defend.

Then wait for the negotiations to conclude. If in 2019, Boris Johnson returns bearing cake for all, if the tests are achieved, Labour will, and rightly, support the government’s Brexit deal. There will be no second referendum. And MPs in Leave voting constituencies will bear no Brexit penalty at the polls.

But if he returns with thin gruel? If the economy has tanked, if inflation is rising and living standards have slumped, and the deficit has ballooned – what then? The only winners will be door manufacturers. Across the country they will be hard at work replacing those kicked down at constituency offices by voters demanding a fix. Labour will be joined in rejecting the deal from all across the floor: Labour will have shown the way.

Because the party reads the electorate today as wanting Brexit, it concludes it must deliver it. But, even for those who think a politician’s job is to channel the electorate, this thinking discloses an error in logic. The task is not to read the political dynamic of today. It is to position itself for the dynamic when it matters - at the next general election

And by setting some economic tests for a good Brexit, Labour can buy an option on that for free.

An earlier version of this argument appeared on Jolyon Maugham's blog Waiting For Tax.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.