Graduate tax proposal described as ‘unlikely’

The BBC has reported this week that a senior Conservative source has said that the government rejects the idea of a graduate tax system

Vince Cable MP. Photo: dspender via Flickr Creative Commons

Vince Cable MP. Photo: dspender via Flickr Creative Commons

A senior Conservative source has said that the government rejects the idea of a graduate tax system.

This follow last week’s news that Vince Cable, the coalition’s Business Secretary and a Liberal Democrat, announced the new proposal to scrap tuition fees, and instead make students pay a tax when they graduate according to how much they earn.

This would mean, for example, that a low-paid teaching assistant or social worker would pay much less than a City banker for their degrees.

A key part of the Liberal Democrat manifesto was the abolition of fees.

The source has said that the proposal would break the link between students and universities and that the government would not accept it.

The Conservative source said: “It is important that the money goes to the institutions. They have to have an incentive for student recruitment or a penalty if the numbers are falling.”

The source continued by saying that the graduate tax was an “unlikely” option.

The former chief executive of BP, Lord Browne, will lead an independent review looking into whether tuition fees should be raised or replaced. It is due in October.

3 comments

  1. As aghast as I was at the proposal on the face of it, it might have been nice to see some figures for how it’d pan out before tossing it out of the window.

    Raising fees is hardly a positive step.

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  2. 26 Jul ’10 at 12:27 am

    Well Vince said...

    ‘”Oh yes, it will [happen]. It has been agreed with the prime minister and the chancellor,” he said confidently. “What I put forward wasn’t Cable kite flying”‘ – in yesterday’s Sunday Times. Don’t know what Cable kite flying is…

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  3. 26 Jul ’10 at 9:35 pm

    The British Centre-Left Majority

    :(

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