I disagree with Nick

The Lib Dem leader has to come clean about his U-turn on spending cuts.

When did Nick Clegg change his mind on spending cuts? It's a simple question but after much flip-flopping we are none the wiser.

On last week's BBC documentary Five Days that Changed Britain, the Deputy Prime Minister told Nick Robinson that events "between March and the actual general election" triggered his Damascene conversion to Conservative economic thinking: he, too, thinks deep and immediate spending cuts are necessary.

So did he change his mind before or after telling the electorate in March that "merrily slashing now is an act of economic masochism" and that "of course" he would not compromise on this in any coalition negotiations?

Did he change his mind before or after telling Jeremy Paxman in April: "Do I think that these big, big cuts are merited or justified at a time when the economy is struggling to get to its feet? Clearly not."

Or did he change his mind less than a week before polling day when he said to Reuters on 1 May: "My eight-year-old ought to be able to work this out -- you shouldn't start slamming on the brakes when the economy is barely growing. If you do that you create more joblessness, you create heavier costs on the state, the deficit goes up even further and the pain with dealing with it is even greater. So it is completely irrational."

Since the election, the Deputy Prime Minster has been less than forthcoming about what he thought and when he thought it.

On 12 May he concluded the coalition agreement with the Tories -- his new partners in fiscal retrenchment -- and promised a "significantly accelerated" deficit reduction plan, referring to "immediate cuts". On 6 June, in an interview in the Observer, he acknowledged that his view had "shifted", citing as reasons the events in Greece and a conversation with the governor of the Bank of England around the time the full coalition agreement was being finalised.

So far as Clegg's Greek defence is concerned, the governor told the Treasury select committee in February that "I do not think you can compare the UK with Greece". In fact, Clegg himself had claimed in March that "the guaranteed way" of producing Greek-style unrest would be "macho", deep, immediate spending cuts.

As for their big conversation, Mervyn King told me last week at a hearing of the newly constituted Treasury select committee that he had given Clegg no new information on the debt situation during their chat. Indeed, the day after our hearing last week, it was revealed that Clegg had changed his mind before the election -- an election in which he sought votes on the basis set out in his manifesto:

If spending is cut too soon, it would undermine the much-needed recovery and cost jobs. Our working assumption is that the economy will be in a stable enough condition to bear cuts from the beginning of 2011-12.

So, having disposed of the reasons cited by the Deputy Prime Minister for his change of position, we are left with a far more serious question: why did Clegg not tell the electorate that he would follow Conservative economic policy before 6.8 million people cast their votes for him on 6 May?

Did Clegg not think the British people deserved to know what they would be voting for? According to last weekend's Sunday Times, Clegg had not even informed his Treasury team -- Vince Cable included -- of the line he would take once the polls shut. A full and frank explanation is needed, otherwise the electorate, never mind his MPs, will be entitled to ask: How can we trust anything you say?

Chuka Umunna is the Labour MP for Streatham and a member of the Commons Treasury select committee.

Chuka Umunna is Labour MP for Streatham.

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com