Miliband would cut top tuition fees to £6,000

Labour pledges to reduce top university fees by scrapping cut to corporation tax.

Labour would lower the cap on tuition fees if in government, Ed Miliband has announced.

Continuing his strategy of aligning himself with the "squeezed middle" -- the ordinary people suffering from the fall-out of the economic crisis -- he has said that if he was in government, he would cut the maximum tuition fee from £9,000 to £6,000.

The move is one of the biggest policy decisions Miliband has made during his year in leader, and is a clear attempt to attract some of the student vote that the Liberal Democrats lost when they broke their promise on tuition fees. Speaking to the Observer, aides implied that it may not stop there: "This is what we would do now. But in three and a half years' time we might be able to do even more." However, once the new fees are ensconsed, it is difficult to see Labour promising to reduce them further.

Given all the murmurings about his party's "economic credibility", Miliband has emphasised that this cut is fully costed -- it would be funded by charging more interest for the highest paid graduates, and by scrapping a planned cut in corporation tax.

This last is a canny political move. Directly equating hikes in living costs for ordinary people with cuts for those who precipitated the crisis is likely to strike a chord with a public already angry at this double standard. The coalition has already criticised the proposal, with Lib Dem MP Gordon Birtwhistle telling the BBC that companies affected are potential employers of students. However, this does not ring true as it is not a hike in corporation tax, merely the reversal of a cut. It is a bold move, and sends a potentially powerful message about where Miliband believes the burden should lie.

However, he did not refer to the huge cuts to university funding that the coalition plans. These cuts of up to 80 per cent mean the crisis in university funding -- which the Browne Review was created to address -- has not been solved, as transferring costs from the state to the student does not address university's shortage of cash. Miliband's move is an effective piece of positioning and a potentially popular policy -- but it does not address this funding gap.

This announcement comes on the same day as YouGov/IPPR poll found that 70 per cent of people said they might be prepared to vote Labour, versus 64 per cent for the Liberal Democrats and 58 per cent for the Tories. Just 30 per cent say they would "never" vote for Labour, as opposed to 36 per cent for the Lib Dems and 42 per cent for the Tories. While this has yet to be translated into actual concrete support, it suggests that Labour is not seen as the most toxic party, despite concerns about their handling of the economy. As the conference opens, this reiterates that there is a big opportunity there for Labour. It remains to be seen whether they will capitalise upon it.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

Photo: Getty Images
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What do Labour's lost voters make of the Labour leadership candidates?

What does Newsnight's focus group make of the Labour leadership candidates?

Tonight on Newsnight, an IpsosMori focus group of former Labour voters talks about the four Labour leadership candidates. What did they make of the four candidates?

On Andy Burnham:

“He’s the old guard, with Yvette Cooper”

“It’s the same message they were trying to portray right up to the election”​

“I thought that he acknowledged the fact that they didn’t say sorry during the time of the election, and how can you expect people to vote for you when you’re not actually acknowledging that you were part of the problem”​

“Strongish leader, and at least he’s acknowledging and saying let’s move on from here as opposed to wishy washy”

“I was surprised how long he’d been in politics if he was talking about Tony Blair years – he doesn’t look old enough”

On Jeremy Corbyn:

"“He’s the older guy with the grey hair who’s got all the policies straight out of the sixties and is a bit of a hippy as well is what he comes across as” 

“I agree with most of what he said, I must admit, but I don’t think as a country we can afford his principles”

“He was just going to be the opposite of Conservatives, but there might be policies on the Conservative side that, y’know, might be good policies”

“I’ve heard in the paper he’s the favourite to win the Labour leadership. Well, if that was him, then I won’t be voting for Labour, put it that way”

“I think he’s a very good politician but he’s unelectable as a Prime Minister”

On Yvette Cooper

“She sounds quite positive doesn’t she – for families and their everyday issues”

“Bedroom tax, working tax credits, mainly mum things as well”

“We had Margaret Thatcher obviously years ago, and then I’ve always thought about it being a man, I wanted a man, thinking they were stronger…  she was very strong and decisive as well”

“She was very clear – more so than the other guy [Burnham]”

“I think she’s trying to play down her economics background to sort of distance herself from her husband… I think she’s dumbing herself down”

On Liz Kendall

“None of it came from the heart”

“She just sounds like someone’s told her to say something, it’s not coming from the heart, she needs passion”

“Rather than saying what she’s going to do, she’s attacking”

“She reminded me of a headteacher when she was standing there, and she was quite boring. She just didn’t seem to have any sort of personality, and you can’t imagine her being a leader of a party”

“With Liz Kendall and Andy Burnham there’s a lot of rhetoric but there doesn’t seem to be a lot of direction behind what they’re saying. There seems to be a lot of words but no action.”

And, finally, a piece of advice for all four candidates, should they win the leadership election:

“Get down on your hands and knees and start praying”

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.