Higher Education has been left in the dark

Commenting on the budget today and how it will affect the Higher Education sector, Shadow Minister for Higher Education, David Lammy, said:

“For the last two months, the coalition has shown absolutely no leadership on the future of the Higher Education sector.”

“The Universities sector will be the worst hit from the budget: a Chancellor determined to slash 25% off of their budget and a coalition government unable to show leadership because it is paralysed by disagreement over the fees review.”

“How do they expect Universities to be able to plan for the next academic year in such uncertain circumstances?”

Commenting on the Chancellor’s announcement that the government will look at discounts for early repayment, David said:

“This policy inevitably benefits the wealthiest students who can afford to pay back to quickest.”

“Those who benefit the most from Higher Education will pay the least for it.”

Universities will be hit by the increase because they cannot charge VAT on most of the services they produce. This means that they cannot recover the VAT that they have paid themselves on costs.

Commenting on how the increase in the normal rate of VAT will affect Universities’ income and expenditure, David said:

“This is a stealth tax on the sector and on students.”

“In one flick of the wrist, the Chancellor has increased living costs for students by 2%.”

“I will be calling on David Willetts [Minister of State for Universities] to increase the maintenance loan to students by the same amount. To do otherwise would be regressive and rip to shreds the government’s claim to care about widening participation.”