Universities snub graduate tax plan and demand major funding review

AS THE principal of one of Scotland's leading universities, he went out on a limb to call for a graduate tax to help fund higher education.

Dr Brian Lang, the principal of St Andrews University, said the move was the only way for Scottish universities to compete with those in England and Scotland without placing an "unnecessary burden" on students.

But yesterday no other university in Scotland stepped forward to back Dr Lang's views.

Universities Scotland refused to suggest a new funding mechanism for fear of upsetting the new government while public funding for the sector has yet to be decided for the next three years.

Instead the body, that represents higher education in Scotland, called for a review of funding in the long term.

Lord Sutherland, the former principal of Edinburgh University, agreed the increasingly competitive nature of higher education meant a "thorough review" was needed .

And student bodies were keen to retain funding and prevent measures such as a graduate tax coming in.

The funding of universities in Scotland has been a contentious issue in Scotland since 2000 when the Labour/Liberal Democrat coalition took a different path to Westminster by scrapping tuition fees.

At the moment universities in Scotland have managed to raise enough money through public funding and hope to receive an extra 168 million up to 2011 when the spending review completes in autumn this year.

However, in the long term it is likely English universities will be able to increase tuition fees, while countries like India and China are also investing more in higher education.

Dr Lang said graduate taxation could help to meet the impact of tuition fees.

The Scotsman contacted a number of universities yesterday but none was willing to back the idea of a graduate tax.

Universities Scotland said a wholesale review was needed, not just of funding but of how universities in Scotland can remain competitive through a range of measures.

A spokesman said: "There is no question that universities face a wide range of international challenges in the coming years. It is not just about funding, it is about a bigger long- term strategy for the sector and we would be keen to work with anybody for Scotland's higher education future."

The review would include members of the business community, trade unions, lecturers and students.

Lord Sutherland said Scotland risks being left behind unless new ways of funding are considered. "The Scottish universities will be at a significant disadvantage if the current regime continues and fees are charged in England but not in Scotland.

"My own belief is that the level of fees charged in England will go up and if that is so it will mean an even more significant disadvantage, and the reason for that is you are competing for the same pool of staff, and on laboratories.

"There needs to be a full review of how universities in Scotland are funded because of these new circumstances.

James Alexander, the president of the National Union of Students Scotland, said Scotland should carry out a review to find ways to fund universities without penalising students.

"We need to get away from the idea that students are a bottomless pit of money and all the funding past, present and future of Scotland should come directly from students and graduates. We need to start thinking properly of who are the true beneficiaries in terms of the state and business and where all the big companies get their employees from."