Scottish Labour turns against free university education

Johann Lamont's declaration that free higher education is "effectively regressive" is a significant moment.

Following her speech earlier this year in which she questioned the future of universal benefits, Scottish Labour leader Johann Lamont has gone further and declared that free university education in Scotland is "not sustainable".

Not only did Lamont argue that free higher education could not be maintained at a time when college funding was being cut, she also declared that a no-charge system was "regressive" since graduates got "higher lifetime returns" and a "disproportionate number" also come from well-off backgrounds. In the speech, which marked her first year as leader, she said:

There is no such thing as free higher education: under a completely tax funded tuition system, everybody is forced to pay for it, including those on low incomes.

Labour believes in extending the chance of a good university to all who are capable of undertaking study.  However, university education is costly, and faces competing claims on limited public resources.

This represents a significant departure from Scottish Labour's traditional support for free, tax-funded higher education. Lamont is preparing to move to a position of support for tuition fees or, more likely, a graduate tax.

In England, of course, Labour abandoned its support for free university education as long ago as 1997 and Ed Miliband has only promised to reduce the cap on fees to £6,000. But the debate is similar to that currently taking place in Westminster over universal benefits. In his speech yesterday, Nick Clegg argued that benefits for the elderly like the winter fuel allowance, free bus passes and free TV licences should be means-tested.

There are some in Labour who believe Miliband should adopt a similar stance and pledge to use the money saved to fund social care or cheap universal childcare. Earlier this year, Liam Byrne, the shadow work and pensions secretary, said: "There has always been a balance in the welfare state between universal benefits and targeted benefits and I'm afraid as part of Ed's zero-based review that balance has got to be looked at".

He was swiftly slapped down by Labour HQ, but such is the fiscal mess that the party will inherit (the Office for Budget Responsibility forecasts that the defict will be £99bn in 2015) that it will almost certainly reconsider its position.

Scottish Labour leader Johann Lamont. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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