Category Archives: Debate

Time to review student funding?

After all the pain the Lib Dems went through with the student funding policy, the least we could expect is that it would do what it said on the tin.

But that has turned out not to be the case.  At the time when they were debated in the Commons, we were told to expect to see the average university charging around £6,000 in annual fees.  In fact, the average looks like it may be around £2,500 higher.

To make matters worse, it would appear that the government will now be faced with a stark choice: cut student numbers or have to pay more than they expected to underwrite the loans needed to pay for all these high tuition fees.

Many have suggested that it is time the Lib Dems began pushing for a review of a policy which has caused us so much harm and which does not appear to be working.  What do you think?

Questions from Social Liberal Forum Members to The Rt. Hon Dr Vince Cable, January 2011

Jon asks:
The last serious survey on the subject, about 10 years ago, showed that graduates earn on average some £600,000 more than non-graduates over their working career. I don’t think there can be any debate about the fairness of students contributing about 3 to 4 per cent of the cost of their passport to greater riches. It would be regressive taxation for poorer taxpayers to have to shoulder the burden. The real issue is repayment, and when. It should be seen not as a discouraging short-term debt, but as a long-term investment – a kind of career mortgage, to be repaid over a similar period. Why can’t the government accept and implement this?

Jon, I believe what the Government has implemented is like a mortgage but with more protection built in for low earners – unlike a mortgage debt lower earners will not have to pay. Graduates will pay for 30 years or until they have repaid the amount they borrow dependent on their income once they earn over £21,000. If their earnings rise, the amount they repay and the interest they accrue increases and if their income drops payments decrease.

Sarah asks:
Within the cabinet, how was the cut to the teaching grants decided?

As part of the spending review process I and other ministers carefully considered all the spending done by the business department. We had to reduce spending significantly and had to look at radical ways to protect services. In the case of Higher Education we knew that graduates enjoy a lot of the benefit from higher education; we judged that increasing the contribution they make we could protect the ‘amount’ of higher education available while contributing to the deficit. We were also able, as a result of difficult decisions on Higher Education budgets, to afford some protection to further education which has been stripped back under the previous Government and protect science which is crucial for growth. Overall university funding has been cut by 25% along with the department average.

Alan asks:
I am a 2nd year student studying Politics and Economics at a top 10 British University. In the first year of my degree, my lecture attendance rate was less than 10% (I was a PPC, worked for a local party and chaired an SAO!). Yet I still achieved 59 for the year – that 59 of course does not count towards my degree classification. Indeed for my “Great Political Texts” module, I read not a single text and attended 2 of the 10 lectures, yet I received 60 for the module. And despite barely participating in my course last year, I am expected to get a 2:1 for my degree. This is not me boasting – this is true for many students across the country, I don’t claim to be any exception. Why are you going to expect an undergraduate to pay £9,000 for a years tuition which they do not need to attend? I cannot understand why the government has ducked much needed University reform such as getting rid of the first year of most degree courses, moving vocational courses to an on-the-job business setting and other measures to save money. Why are we moving the cost of this inefficiency onto the student, rather than tackling it head on?

As part of our reforms we will be putting far more responsibility on universities to account for the prices they charge. They will have to publish detailed information about teaching time and employability rates of their graduates to justify the value for money they offer students and they will have to cater to student demand far more now that a greater proportion of their income flows through the student rather than direct from the Government.

Janet asks:
Was the option to delay our commitment to reducing fees considered and if not why not given that the impact on deficit reduction would have been negligible during this parliamentary term?

We looked at all the options such as a graduate tax, cutting student numbers or cutting funding for universities with no means of replacement and found that none of the alternatives were workable or desirable. We did not want to deprive tens of thousands of young people a university education or see the quality of that education deteriorate so we could avoid a very difficult political decision. We could not find a way to ensure that we could collect a graduate tax from people who moved abroad or EU students.
Cutting the deficit has to be sustainable; our plans close the gap between government income (tax receipts) and government spending in the next 4 years but they ensure the gap does not reopen in years to come.
Our plans to reduce the teaching grant to universities reduces government spending in this parliament but by increasing the income related loans to students we allow the number of student places and standard of teaching to remain the same and the repayment system protects low earners. In the first few years of the system government outgoings in loans will be increasing but as they are loans, the majority of which will be repaid, they do not contribute to a gap between Government income and spending over the long term and are accounted for differently on the Government balance sheets.

Peter asks:The government has spoken about shorter degree courses for students; two years instead of three. Are you aware that universities are increasingly moving to four year courses with one year on an industrial placement (charging tuition fees for all four years, although reducing the amount for the placement year)? How does that fit in with the two year course proposal, which it seems to completely contradict?
Also, why wasn’t the NUS pledge included in the coalition agreement? Many people, particularly students, potential students and their parents, saw the abolition of tuition fees as a flagship Liberal Democrat policy, for many of them it was THE flagship Liberal Democrat Policy that led them to support us. The Policy Response team said that the NUS pledge was consistent with Party policy, which is clearly true, but despite both these points it wasn’t in the coalition agreement.

To take your first point, I have not suggested that all degrees should be two years but that universities should respond to what students want. I think that sandwich courses with a year in industry are good for students looking to go into a specific industry and can provide invaluable experience relevant to their studies. The Government does not want to micromanage universities and what they offer but give students the power and information to demand a more responsive system.
On your second point, during the course of an election campaign MPs and candidates sign many pledges – they are devices by campaign organisations to build the profile of their causes and get political support for it. The NUS pledge clearly was clearly more significant than most but it would not have been appropriate or wise to pick campaign pledges as a basis for Government. The Coalition Agreement’s conditions for creating a system of student finance were far more comprehensive than the NUS pledge as they included increasing social mobility and attracting a higher number of students from disadvantaged backgrounds.

Nigel asks:
1. How will the change in HE funding reduce the deficit when it is clear from various analyses (IFS, Million+) that the cost to the exchequer is likely to be higher not lower in the years through to 2015?
2. In the light of this, how can we justify the move from funding by the taxpayer to funding by the graduate? Is this not simply an ideological choice, and one that is contrary to agreed party policy?
Cutting the deficit has to be sustainable; our plans close the gap between government income (tax receipts) and government spending in the next 4 years but they ensure the gap does not reopen in years to come.

Our plans to reduce the teaching grant to universities reduces government spending in this parliament but by increasing the income related loans to students we allow the number of student places and standard of teaching to remain the same and the repayment system protects low earners. In the first few years of the system government outgoings in loans will be increasing but as they are loans, the majority of which will be repaid, they do not contribute to a gap between Government income and spending over the long term and are accounted for differently on the Government balance sheets.

Prateek asks:
1. Once the decision was made to cut the teaching grant by 80%, it strikes me that more of the cost of a degree could have been passed on to the business sector which demands such high numbers of graduates. Is it feasible to reverse a proportion of the Chancellor’s cut in corporation tax to fund part of the cost of tuition? If not, what measures will BIS be taking to encourage business to pay for scholarships, teaching posts and departments?

I agree that employers need to be far more involved in higher education as they, like graduates, do enjoy some of the benefits. The forthcoming White Paper will explore how we get business more involved. There are already schemes running such as the recently announced KPMG programme at Durham University which will pay fees and a salary to accountancy students who will also get work experience at the firm during their studies. We need to do more to encourage such schemes.

2. Some universities will be expected to reduce the cost of delivering their teaching, and shorter degrees have been postulated. What measure will BIS take to encourage greater distance-learning, better use of electronic resources and delivery of teaching through local Further Education institutions to save on costs – or will these measures be left up to individual Universities to implement?

For the first time we are making loans available to students studying part time which will make this option far more attractive to students. Our white paper will explore how we can ensure that FE providers can offer more HE locally at lower costs. Universities will have to publish more information about the courses they offer and what students can expect. As more funding for universities will now flow through students their choices and preferences will shape university behaviour to a greater extent than is currently the case.

Dr. Evan Harris writes in the Guardian, and interviews Nick Clegg, regarding tuition fees

There is little doubt that it has been a difficult week for Liberal Democrats; our Parliamentary party faced the choice between backing a rise in university tuition fees that the majority of Lib Dem voters and members do not support, and causing a potentially damaging split within the Coalition. The decision to raise fees has been protested – vociferously, at times violently – and the Lib Dems’ role in this policy has been subject to much Parliamentary and media scrutiny, without much of a real debate over the merits or otherwise of the proposed policy itself.

Here, we bring you some contributions to the debate over higher education policy made by former Lib Dem MP and senior Social Liberal Forum Council member Dr. Evan Harris.

Firstly, Evan wrote the following on his Guardian blog Political Science (you can read the full article here, which includes hyperlinks to all sources):

If I were still a Liberal Democrat MP I would vote against the proposed rise in tuition fees.

The coalition deal does mean accepting compromises and supporting an overall programme, including things you like as well as things you don’t. But this policy is different, for several reasons…

Evan then dissects the policy in detail, dealing first with its strengths and positive aspects: First the good aspects of the policy

1) The repayment system is fairer than the current one and Lord Browne’s recommendations.

The Institute for Fiscal Studies yesterday finally produced a full judgement of the proposals. It really does merit study by those commenting on them. Earlier IFS papers had been wrong because they were based on certain incorrect assumptions and had been misinterpreted by the National Union of Students and others, forcing the institute to announce that there would be a revised version . In any event, the government announced changes.

The report confirms that the government’s proposal is more progressive (fairer) than both the existing system introduced by Labour and what was recommended by Browne, who was asked by Labour and the Conservatives to make recommendations for a higher fee…

2) There is a real benefit for some part-time students.

They were excluded from the previous loan regime under the last government and had to pay full fees. This has been a long-standing Lib Dem complaint.

3) There should be less student poverty.

Maintenance grants and loans have been made more progressive and generous, although through a more complex system of tapers.

4) There are no upfront fees.

They are paid by the government and the graduate repays these at a rate of 9% once income exceeds £21,000. The debt is more akin to a future tax code and is not one that mortgage providers would consider. Students can be said to be “saddled with debt” only in the sense they are saddled with a prospective graduate tax code of 9% until their fees have been paid back, or for 30 years, whichever comes first.

5) The university bursary scheme is effectively replaced by a national bursary scheme.

This is desirable since it was very unclear to students in advance whether they would qualify for a bursary at any given university, and they would have to compete on the basis of poverty with others in front of their institution, which would not be edifying.

6) There is no market in higher education under these plans.

Nonetheless, major problems remain, which Evan describes:

Despite that being what Blair, Brown, Cameron and Lord Browne wanted, Vince Cable has managed to quash that.

Evan then discusses alternatives to the current proposals, and the political implications for Lib Dem MPs and the way they voted:

It still seems to me that general taxation or a graduate tax would be a better system for funding higher education, and I have not been convinced that a graduate tax is unworkable. It is very sad that the last Labour government refused to consider such a tax and failed to ask the Browne Review to explore it in a detailed and consultative way.

We ought to recognise that were it not for the Lib Dems in government, the proposals would have been a hell of a lot worse. Under a Labour or Tory government we would have had no cap or a higher cap, a market, and a less fair repayment system than is being proposed.

I understand why Lib Dem ministers, who are part of the coalition that has agreed a compromise with the Tories, are expected to vote for this policy and why the party’s whips want backbenchers to abstain, but I think that Lib Dem MPs are justified in voting against.

Evan then wrote a follow-up piece on The Guardian’s Comment is Free site, reproduced in full here:

In the largest ever Lib Dem rebellion, 21 of my former colleagues broke the whip last night to vote against the government’s tuition fee plans. If I was still a Lib Dem MP I would have been with them for the following reasons:

• The biggest challenge facing higher education is the failure to attract students from poor backgrounds and the negative impact that tuition fees have on those who are debt-averse from aspiring or applying to university. This is despite it being clear, when the proposed fee system is understood, that it should not deter anyone who does not object to a progressive graduate tax (since that is what it amounts to after graduation). A graduate tax would not carry the same deterrent image as debt.

• Tuition fees, especially highly variable ones, move towards a marketisation of higher education, which has been the aim of Tony Blair, Peter Mandelson, Gordon Brown and David Cameron. A graduate tax or income tax-funded system is a move away from that.

• Because this system moves away from a tax-funded model of higher education (although the subsidy of graduate contribution for fees still means there is significant taxpayer funding), which a graduate tax or general taxation obviously does not do.

I set this out in more detail on these pages previously. However, politics is to a certain extent the art of the possible and I am not critical of those Liberal Democrats who supported the government or abstained in the vote. This applies especially to those who have been involved in negotiating as fair a system as possible with Tory coalition partners whose philosophy in this area is very different. The fees regime could have been worse under a Tory or Labour government or under a coalition government where Lib Dems simply opted out of working on the policy. The Institute for Fiscal Studies in its latest report on the fees policy has set out its view that it is fairer than the current system (set up by Labour and supported by the Tories) and than the Browne review – established by Labour and supported by the Tories.

An unadulterated Tory (or Labour or Lord Browne) policy would have been one with no cap, fewer progressive repayments, total fee variability and a free market, no national bursary system, nothing for part-time students and less generous maintenance grants. So we should understand why politicians who worked hard to prevent that will want to vote for the better package they have negotiated and feel proud to do so.

Like all other Lib Dem candidates I stood on a manifesto that pledged to abolish tuition fees (over six years). In many letters to voters I pledged that even if we did not win the election and I was in opposition, I would continue my practice of voting against tuition fees and fee increases.

Neither in the manifesto nor in any of those signed letters of pledge did the question of coalition compromise come up. In contrast, whenever I was asked what was a “red line” for any coalition negotiations in a hung parliament (was it proportional representation for example?), I said that it was impossible to say in advance but that our top priorities were listed on page one of the manifesto. Tuition fee abolition was not included in those.

When the NUS asked me to sign a pledge combining the manifesto pledge and the commitment to vote against a Labour or Tory proposed increase in fees, I saw no reason not to sign it. In retrospect, this was clearly an error – and Nick Clegg has accepted this – because it did not make clear that such pledges cannot be guaranteed in a coalition agreement. This is a problem British politics will have to come to terms with. Interest groups and voters are entitled to expect that pledges are held to, force majeure excepted, when a platform consisting of those pledges wins an outright majority. But they need to understand that any resultant coalition government can only be held to what is in the agreed coalition programme, and not what is pledged in individual manifestos, pledges uttered in leadership debates, photo-opportunities with pledge cards and letters of pledged intent to voters. Are such pledges from now on all going to have to have riders setting out that any pledges are only guaranteed for single party outright majority government? Maybe.

Lib Dem candidates realised, or should have realised, that if they were in a coalition with either of the fee-loving parties (Tory or Labour) the starting positions would be so far apart that they would not necessarily be able to deliver on fees. The same applies to Tory candidates with their pledges to scrap the Human Rights Act, increase prison sentences and a host of other Tory sacred cows.

The cries of betrayal and the targeting of Nick Clegg and other Lib Dems by the NUS is a patently partisan political stunt, and the anger of students at the Lib Dems is misplaced and disproportionate.

The NUS is partisan because the president’s party – Labour – made a pledge before the 1997 not to introduce tuition fees if they got a single-party majority – and still broke that pledge. With no coalition deal to agree. It was a straightforward “betrayal” of a pledge with no excuse. The same thing happened in 2001 on top-up fees. The same thing happened in 2009 when instead of having a clear policy against lifting the cap, Labour set up the Browne commission to investigate how to do it without even asking them to do any work on a graduate tax alternative. In neither of these more blatant cases of betrayal was there a concerted anti-Labour campaign by NUS.

The NUS sought to target Simon Wright, the Lib Dem MP for Norwich South, who has since voted against tuition fee rises, while they did nothing against the previous MP – Charles Clarke, Labour’s tuition fee architect.

It is a bizarre situation when some in the protest movement seek to target the only 57 MPs (albeit with nationalists and some Labour rebels) who actually agree with them on the principle and who have done more than any politicians to deliver as fair a deal as possible.

Some may wish the Lib Dems were not a force in parliament. But be careful what you wish for. Let them see what an unfettered Tory or Labour government facing the fiscal crisis would have delivered on student finance.

Lastly, Evan interviewed Nick Clegg at length on the issues of higher education finance, an interview which is available on the party website.

An open letter to Nick Clegg regarding inequality, social mobility and fairness

Dear Nick,

In delivering the Hugo Young memorial lecture, you raised the challenges that progressives face in times of fiscal constraint. We share your view that these are timely and important issues to discuss.

We also found much in your lecture that we agree with. In particular, we welcome your commitments to localism, civil liberties and political pluralism.

We are, however, concerned that some of the statements you made may be odds with the both the values and agreed policies of the Liberal Democrats.

In your speech you make it clear that you view increased social mobility – not reduced income inequality, or the elimination of poverty – as the goal we should aim for as a society. In your own words, you wished to see, a “shift, from a static, income-based definition of fairness to an approach focused on mobility and life chances.”

We cannot agree.

Social mobility is indeed important, but so are poverty reduction and reducing the gap between rich and poor. Poverty causes suffering. The gap between rich and poor causes misery, social tension and intolerable inequalities of political influence. We need to tackle poverty, inequality and lack of mobility – not just focus on one to the exclusion of others.

The preamble to the Liberal Democrat constitution states that we aim to create a society “in which no-one shall be enslaved by poverty, ignorance or conformity.” And when we say “no-one shall be enslaved by poverty”, we mean exactly that, no-one. We urge you to ensure, that in focussing on the social mobility, you do not forget about those who are not upwardly mobile.

The idea that social mobility should replace the notion of “lifting people out of poverty” is, in our opinion, ill-conceived. The concepts should augment each other not replace each other. On its own, social mobility does not remove the suffering of poverty, it merely changes who is poor. Social mobility implies that people can fall as well as rise; and when they do fall, they need the assistance of a robust welfare state. Providing a decent life to those who, for whatever reason, find themselves on the bottom of the pile should be absolutely sacrosanct.

We believe that a well-designed welfare state promotes social mobility and ensures everyone is provided with a decent life, free from poverty. It isn’t a choice of one or the other; progressives have, in our memory, always argued for both – and so should that continue.

This is why we support, in principle, the Coalition’s policy for a ‘universal credit’. The policy should, if properly designed, give proper protection to those out of work and provide a humane incentive to get back into work. It is also why we oppose changes to Housing Benefit that may exacerbate overcrowding and homelessness.

You are right to imply that the last Government’s strategy for raising people who are slightly below the poverty line to slightly above was far from ideal. We share this view, if only because the strategy lacked the ambition to help the very worst off, or help lift people even higher. Although you make light of the goal of lifting people’s income to that of “poverty plus a pound”, we must point out that poverty plus a pound would certainly be helpful to someone substantially below the poverty threshold.

We also agree that to take into account peoples’ capability to live a fulfilling life, poverty of income should indeed be considered as instrumental to their life chances alongside ‘the non-financial, dimensions of poverty, particularly in terms of access to services;’ this is why we were concerned to the the Treasury’s own analysis showing that the budget (let alone the CSR) would reduce the incomes of many of the poorest people in the country.

On inequality, you unambiguously dismiss the notion that inequality matters in and of itself. You state that, “Social mobility is what characterises a fair society, rather than a particular level of income equality.”

Again, we cannot agree.

Before the election you told the Equality Trust that you would agree to a ‘fairness test’ which stated that policies should be judged in terms of whether they would increase or decrease inequality (your response to the Equality Trust can be found here http://www.equalitytrust.org.uk/fairnesstest) – this requirement has now been discarded by the Coalition. Crucially, at both the Special Conference in May and at our annual Conference in September, the party agreed that Liberal Democrats will, over the course of this Parliament, work to reduce the gap between rich and poor.

Evidence shows that socio-economic inequality matters for people’s outcomes and is a factor in preventing the very social mobility that you (and we) wish to promote. There is a great deal of data to show that unequal societies are less happy, have greater incidence of mental illness, violence and drug use. This is not just a factor of social mobility, but the strain inequality puts on those at the bottom end of the scale.

Inequality also hampers social mobility, as those with money have access to the means to create more money enhancing their advantage over time – precisely the concentration of power that liberals stand firmly against.

We urge you, in the strongest possible terms, to recognise that both poverty reduction and closing the gap between rich and poor are important in and of themselves – in a way that is at least as important as promoting social mobility. We also draw your attention to the fact that those countries with the highest levels of social mobility, lowest levels of poverty and most equal distribution of income, tend to be the countries where the State takes an active role to generously fund public services, redistribute income and actively help people find jobs.

We look forward to hearing your thoughts on the above and to a continued dialogue on how to make our government’s policy as fair as possible.

Yours,

David Hall-Matthews, Chair, Social Liberal Forum
Prateek Buch
Cllr Paula Keaveney, Liverpool City Council

Geoff Payne, Hackney Lib Dems events organiser

Naomi Smith

Charles Marquand

Members of the Social Liberal Forum Council

Tim Farron responds to SLF questions on the Party Presidency

Both candidates for the Presidency of the Liberal Democrats have been hard at work in recent weeks, touring media outlets, local parties and online blogs (such as Liberal Democrat Voice, Liberal Vision as well as some excellent individual bloggers) putting their case to the party membership. The Social Liberal forum asked both Tim Farron and Susan Kramer to answer a series of questions about their candidacy – Tim’s answers are below (bold and italics), look out for Susan’s in the near future!

  1. Are you committed to helping the party develop policies which are as distinctive, radical and progressive as possible as the basis of our next manifesto? If yes, how will you do this?
    Yes I am – I want us to enter the 2015 election with a radical, progressive and visionary ‘offer’ to the country.  The work on that starts as soon as I’m elected.  I will ask the chair of the manifesto group to set in train a process of consultations around the country on all areas on the manifesto.  I will ensure this isn’t a mere fig-leaf – it will be real and honest.   I promise that people will see their ideas in the manifesto that they will use to canvass with at the next election
  2. What is you view on the question of:
    a) electoral pacts with other parties?
    I believe in plural politics so I have no problem with coalitions, but will have absolutely nothing to do with pre-election pacts
    b) specifying a preference for future coalition partner at the next election?
    It would be foolish to pin your colours to the mast before an election. It would be electorally damaging, would reduce our bargaining power and who knows which way the electoral arithmetic will fall.  The more Liberal Democrat votes and MPs we get the more we can achieve in any coalition – that much is evident from our current experience.
  3. Will you help create and communicate a distinctive Lib Dem position on some Government policies and their implementation (i.e. the record of the Government) well before the next election? If so how?
    Definitely – indeed that is my main reason for standing for this position.  Ministers present the coalition’s arguments. My job will be to present the Liberal Democrats view.  I’ll explain what we stand for and what we are achieving in power.  I’ll spell out those negative things that we have stopped the Tories doing.  I’ll get the Liberal Democrat message heard loud and clear through the media, on line and in person.  I’ll also be the coalition’s critical friend – and a candid one to Nick.
  4. Are you prepared to oppose the adoption of any non-progressive or illiberal policies by the Government?  If yes how do you propose to do this?
    I am prepared to and I have already done so.  My preference is to oppose those policies privately with Nick and other ministers. It’s not for the President to go grandstanding against the government.  I would be loyal to the leader and to Lib Dem colleagues in government, but even more loyal to the members and activists.

  5. a) Are you committed to maintaining the internal democracy transparency and vitality of the Lib Dems as an independent political party? If yes how will you do this?
    Yes, I’m an activist at heart and want to be proud of our party and feel that it represents you and me as committed members.  That means that the democratic structures of the Party should not be circumvented and, given that knowledge is power, that you should know about developments in policy within government ahead of time so that you can react, object, contribute and prepare.
    b) Do you feel that there is sufficient consultation with the party or its elected committees before our ministers agree a new major Government policy which is at odds with policy?
    In some cases there has clearly been insufficient consultation, tuition fees being the obvious case in part.  I’m not psychic, but I think I’ve got a very good feel for what the Party will accept, put up with or indeed be delighted by.  My job would be to keep listening to members and set up formal and informal mechanisms for doing this, and to do everything I can to influence Government policy as a consequence.
  6. What do you think our priority policies should be for this parliamentary term and why?
    Our priorities must be those which make Britain a fairer and more equal place and which confound the Labour narrative that we’ve just become an appendage of our coalition colleagues!  So, education – bringing in the pupil premium, reducing class sizes; raising the income tax threshold as soon as possible; action to reclaim our strong position on tuition fees; not renewing Trident; leading a renewal and expansion in social housing including allowing councils to build council houses without unnecessary bureaucratic hurdles to get over; ensuring that we don’t get complacent about the so-called ring-fencing of the International Development budget – tackling trade injustice alongside ensuring well targeted aid to tackle poverty and the causes of poverty.
  7. Do you have any “red lines” in terms of a coalition policy which would be unacceptable? If so, which, and what would be the consequence of them being crossed?
    We should all have red line issues – Nick Clegg included. Raising of the cap on tuition fees is a red line for me.  Anything that would increase the tax burden on the least well off or increase levels of poverty would be a red line.  If, and I don’t expect it to, the cutbacks lead to very big rises in unemployment levels and we continued regardless with huge reductions in public expenditure, that would be a red line; as would failure to make our asylum system fairer and more compassionate.  We would ensure that we dealt with these issues before they arose so that the leadership was aware of them and I would fight on your behalf to make sure we got the right outcome.  I think Party loyalty and unity are extremely important, especially if you are Party President – but there may be occasions where my loyalty to the Party may class with my loyalty to the Government – in such a case, for the Party President the Party should come first!
  8. What should the coalition do to ensure the gap between rich and poor is substantially reduced by the time of the next general election?
    We need to make work pay more than welfare – I think the high pay commission is a good idea but I want to see a root and branch review of low pay too.   I want to see the government ensure fairness at this time of financial austerity.  Progressive taxation is a way forward – and I would be keen to ensure that the possibility of a higher income tax rate is kept on the table for future budgets.  If we’re all in this together – then the highest paid should be paying more to protect those at the bottom of the income scale. There is so much we can do on this.  Labour failed to protect the poorest in our society.  We must ensure that we don’t throw away this opportunity to make Britain genuinely fairer and to prove to Lib Dem / Labour waverers that this government is more progressive and redistributive than the Brown/Blair government.

Social Liberal Forum asks candidates for the Liberal Democrat Party Presidency to share their views

Following Baroness Ros Scott’s decision not to seek a second term as Party President, the race is on to become the Liberal Democrats’ first new President under the Coalition government – a role that is increasingly significant given the Party’s participation in said Coalition. The experience and calibre of candidates standing for election – itself signifies just how crucial this election could be, which is why the Social Liberal Forum is inviting all candidates to answer the following questions regarding their candidacy:

  1. Are you committed to helping the party develop policies which are as distinctive, radical and progressive as possible as the basis of our next manifesto? If yes, how will you do this?
  2. What is you view on the question of:
    a) electoral pacts with other parties
    b) specifying a preference for future coalition partner at the next election?
  3. Will you help create and communicate a distinctive Lib Dem position on some Government policies and their implementation (ie the record of the Government) well before the next election? If so how?
  4. Are you prepared to oppose the adoption of any non-progressive or illiberal policies by the Government? If yes how do you propose to do this?
  5. a) Are you committed to maintaining the internal democracy transparency and vitality of the Lib Dems as an independent political party? If yes how will you do this?
    b) Do you feel that there is sufficient consultation with the party or its elected committees before our ministers agree a new major Government policy which is at odds with policy?
  6. What do you think our priority policies should be for this parliamentary term and why?
  7. Do you have any “red lines” in terms of a coalition policy which would be unacceptable? If so, which, and what would be the consequence of them being crossed?
  8. What should the coalition do to ensure the gap between rich and poor is substantially reduced by the time of the next general election?

When the candidates have replied (which they can do by e-mailing admin@socialliberal.net), we will post their answers here – so do keep an eye out, and remember that ballots for the Presidency (together with those for the various federal Committees) close on November 10th.

Autumn Conference motions 2 – feedback from comments so far

Wordles aren’t always as useful as they could be, but this summary of comments over the last few days about what topics the Social Liberal Forum should propose motions on at autumn conference seems quite clear:
Wordle: SLF Autumn Conference priorities

Schools is a clear priority, although local, government, housing and tax also score quite highly. Prateek Buch advises against making any decisions before budget day and while there is certainly merit in that, it certainly seems that there is already a lot to go on regarding education policy.

Any suggestions of specific wording?

A compelling case for a high pay commission? [Vince Cable]

Writing on Comment is Free today, Vince Cable argues:

There is now a compelling case for a high pay commission to measure the claims of top earners that their rewards are justified and necessary, even if they offend natural justice and our sense of fairness.

Britain increasingly resembles one of those developing countries whose economy and society are dominated by internationally mobile business managers and a pampered local elite. Most of the natives, outside the prosperous enclaves, count themselves lucky to have a job.

There is nothing intrinsically offensive to most people about talented inventors, entrepreneurs, performers or sports stars benefiting substantially from unique talents that enrich or protect or entertain the rest of us. Even if Bill Gates didn’t give away a lot of his fortune, most of us wouldn’t quarrel with his being a very rich man.

There are, however, two things that do cause offence: one is reward without merit, or reward for failure; the other is tax-dodging. We have plenty of both.

What do you think? How would a high pay commission work? Is there an argument for a maximum wage or is that too crude a tool?

UPDATE: Vince, along with fellow Lib Dem MPs Andrew Stunell, John Leech and Paul Holmes, have signed up to Compass’ campaign for a High Pay Commission (hat tip: Liberal Conspiracy)