Scottish universities 'should charge uncapped tuition fees like US'

SCOTLAND should follow the example of the United States by introducing student tuition fees - with no upper limit - to provide extra funds for cash-strapped higher eduction, a former leader of one of the country's most prestigious universities has said.

Stewart Sutherland, a former Vice Chancellor of Edinburgh University, argues universities should be allowed to charge the going-rate for degrees.

Writing in The Scotsman today, Lord Sutherland states: "Informally, universities should be encouraged to use fee-charging powers flexibly, between courses as well as between universities to reflect actual costs."

Setting out the case against a graduate tax, which some politicians favour over fees, he also says there should be no limit on what institutions can charge.

Lord Sutherland adds: "This would argue for no cap being imposed, for current evidence is that all will charge up to the full cap allowance."

Noting the alternative forms of funding "will seem daunting, and they are", he continues: "The most successful university system in the world, in the US, has many of its best universities charging full-cost fees.

One consequence is a publicly funded system which is smaller and less costly than it would otherwise be. A prospect to contemplate."

• Premuim article - Lord Sutherland: It's time to face the university challenge

In England, a review led by former BP chief executive Lord Browne is expected to report soon on whether the cap on up-front tuition fees in England should be lifted. Currently, the overwhelming majority of universities in England charge the maximum.

Lord Sutherland's comments came as the principal of Glasgow University spoke out in favour of a graduate contribution.

Professor Anton Muscatelli told an education conference organised by the Scottish Tories in Edinburgh yesterday that a "fair" contribution, linked to income and cost of course, would be necessary to fulfil the shortfall expected in education spending.

He said: "We need a solution somewhere between a graduate contribution and a graduate tax. A graduate tax says never mind the cost of your education."

However, he believes a graduate contribution, which could be paid through the tax system, could be fairer.He backed the move, as long as payments were linked to income and did not disproportionately affect people, for example a social worker on a low salary would pay the same as a GP.

Prof Muscatelli added: "We need to look at alternative sources (to government funding] and, within a year, come up with some system."

Lord Sutherland, however, pointed to the same risks of a graduate contribution or tax.

And he added: "This system will not deliver the immediate cash-flow urgently required over the next three years."

Lord Sutherland also pointed out that the 13,000 students from the EU who do not pay fees under European law would not be subject to a graduate tax if they returned to their own country after graduation.

All political parties in Scotland have ruled out a return to up-front tuition fees north of the Border. A graduate endowment where university-leavers paid about 2,000, was scrapped by the current Scottish Government, which argued it brought in little money and was expensive to administrate.

Meanwhile, the president of the National Union of Students Scotland, Liam Burns, who was also speaking at the conference, said the union was considering backing a graduate contribution system. He said: "A contribution could only be considered if it was fair and progressive and kicks in when and if a graduate sees a financial benefit from their education."