The First Test of the Coalition - University 'F(r)ee For All'

ANALYSIS by Sam Naegus

The relationship between the two government parties, the Conservatives and Liberal Democrats was put under new strain today after it was leaked that the Browne report on reforming higher education has recommended that the cap on tuition fees (currently £3,290) should be lifted and British Universities should let the markets govern the level of tuition fees. The two parties have sworn governmental allegence and promised to compromise with each other in all areas possible, but with the budget defecit firmly in mind, it seems the Conservative party are asking the Lib Dems for a complete 'bow-to-the-will". Is it workable, or is this crack in the sufarce fastly turning into the first faultline across planet Lib-Tory?

The prospect of unlimited fees has proved to be a great dilemma for many Lib Dem MPs who have signed a pledge, both before and after May’s election that they would oppose an increase in fees at university, and if the cap is raised, it would have a hugely detrimental effect on Clegg’s parties’ reputation as the student party: and it is certainly true that many students who voted for the party in May would willingly abandon the Lib Dems if they fail to prevent a reform on higher education fees.

In a move that many political commentators believe to be one of a party under immense pressure and nerves, the party hierarchy has refused to comment, or allow MPs to speak to the press until they have been briefed by Vince Cable, the Business Secretary.

Higher education reform has been hotly debated in the last couple of weeks, and these new proposals come just days after Cable ruled out a pure graduate tax on the basis that it was simply unfair. There seems to be consensus among the Conservative Party as well: the Prime Minister stating that “a graduate tax pure and simple doesn’t work, it will actually raise the budget deficit”.

It would only be certain places that would be able to set their own fees: the elite ‘Russell Group’ of the top twenty research intensive Universities, where places are extremely competitive, are keen to be able to set their own fees, which could have a damning effect on the most academically able pupils seeking entrance to establishments such as The University of Sheffield, where there are over eight applications per place.

Whilst such competitive Universities might relish the prospect of setting their own fees, it certainly needs to be taken into consideration that many Universities would struggle to cover the costs of courses if high education spending was cut amidst far reaching reforms which aim to improve the huge budget deficit.

Newly elected Labour Leader, Ed Miliband, has reiterated his support for the replacement of tuition fees with a graduate tax, and has even attempted to provoke a Lib Dem rebellion by promising to work with progressive MPs to prevent a major raise in tuition fees.

The Think Tank, Policy Exchange, who have worked closely with the government are aware that low earners will be entirely unaffected by a reform in the repayment of student loans, some element of fairness that the Lib Dems may cling to. However, they have also recommended that the top graduate earners make extra repayments, thus they would end up paying around 120% of their original loan, something that many see as unfair, and yet another way of punishing high achievers.

If the two coalition parties fail to resolve their differing ideologies on such an issue, it can cause great resentment and also affect the long-term relationship between the Conservatives and the Lib Dems. On one hand, the Conservatives are keen to claw back the budget deficit left to them by the out-going Labour government and are pushing the agenda hard, whilst the Lib Dems must decide whether it is within themselves to compromise on raising fees, something that they have long campaigned and lobbied against. This issue will certainly be one of the first major tests of strength and will on the government. Considering it would appear the parties are glued together until 2015, it might be in their best interests to find a workable solution, and fast.