Concern over plans for a graduate tax (From The Bolton News)

Concern over plans for a graduate tax

4:52pm Tuesday 7th September 2010 in

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BUSINESS leaders have raised concerns that UK students would flock abroad to work if the Government introduced a graduate tax.

Such a tax would also break the link between a student and their chosen university, giving institutions less incentive to improve quality, according to Richard Lambert, director-general of the CBI.

The idea of a tax linked to graduate earnings was first floated by Business Secretary Vince Cable in July, who said he had asked Lord Browne’s independent review of student funding to look into it.

Under the plan, graduates would not take out loans to pay tuition fees, but would pay premiums depending on their earnings once they are working.

But Mr Lambert said a graduate tax would undermine autonomy because students would pay contributions to the Treasury, who would hand it back to universities.