Liberal Democrats push to move graduate tax forward

While the debate continues regarding how to accommodate more students into the UK’s university system, another one gains steam beside it: how to fund those university spots. On Tuesday, 21st of September, grassroots Liberal Democrats at the party’s conference in Liverpool voted to campaign to replace rising tuition fees and student loans with a graduate tax.  The tax would be sliding so that graduates who earn less pay less for their degrees, while those secure higher-paying jobs would pay more.

However, the Institute of Directors says such a tax could lead to a ‘brain drain’ as students seek to study abroad in avoidance of such a tax.  It also suggested that companies employing graduates would should the burden of the tax as graduates would then expect higher salaries to compensate for their tax rate.

Details of how a graduate tax would function are still unknown, while an independent review being led by Lord Browne is expected next month. The review is examining options between raising tuition fees and introducing a form of graduate tax.  It is anticipated that Browne is likely to suggest significant fee rises.


Categories: Higher Education

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