Graduate tax: the devil’s in the detail

A graduate tax can be the fair, progressive and sustainable answer to HE funding. Let’s hope Vince m

While it is correct to say that the jury is still out on whether what Vince Cable means by a graduate tax will be progressive, it is clear to us at the National Union of Students (NUS) that it can, without question, be a very progressive way of funding higher education, and one that has some significant differences from the current tuition fee model.

The principle behind any graduate tax is simple -- you should be able to decide to study what you want to study, where you want to study it, without worrying about the different costs involved. You should then be able to choose to work, where you want to work, without worrying about having to pay back debts as quickly as possible. If you are subsequently able to contribute more towards your education, it is fair that you do so, while those that are not able to should not.

Under the present system, almost all students pay back the same "sticker price" (currently £3,225 a year), whereas a graduate tax would tax a percentage of their income. The system thus leaves a graduate who chooses to use their degree to become a careworker or a primary school teacher paying the same as someone who goes on to take a top job in the City.

Indeed, the current model actually leaves those who go in to more poorly paid jobs taking longer than others to repay their debts, thereby accruing interest on their debt over a longer period, and so paying more for earning less. This is fundamentally regressive -- as Vince Cable puts it, the current fixed sum acts as a higher education poll tax.

A graduate tax need not go on indefinitely; many currently suggest a cut-off point of 20-25 years. Similarly, some people argue for the introduction of a maximum total contribution, beyond which contributions could stop.

We must also not forget that this debate is not about the virtues of a graduate tax over the current system of fees, but about a graduate tax as opposed to a move towards a market in fees -- a market in which certain universities or university courses would cost considerably more than others. This would be a disaster scenario, driving those most worried about debt away from the elite institutions and presitigious course, and introducing dangerous competition into a sector which is entirely unsuitable for marketisation.

What is most important now is ensuring that, having made some positive sounds, Vince Cable now supports the introduction of a genuinely progressive and fair graduate tax model, rather than this simply being a clever rebranding exercise.

Aaron Porter is the president of the National Union of Students. He studied English literature at the University of Leicester and served as a sabbatical officer at the students' union.

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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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