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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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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