A detailed assessment of the issues has, however, convinced us that the arguments in favour of a contribution to tuition costs from graduates in work are strong, if not widely appreciated.
It recommended that graduates made a flat rate contribution of 25 per cent of the cost of higher education tuition and that a mechanism for paying for this should be established by 1998-9.
It recommended that a fees concession should be given to students studying at Scottish universities in the final year of a four-year honours degree, if they were domiciled in other parts of the UK.
[10] Starting with 1999-2000, maintenance grants for living expenses would also be replaced with loans and paid back at a rate of 9 per cent of a graduate's income above £10,000.
Former Labour education secretary Ted Short said that he was ashamed to be a member of the party and Ken Livingstone accused ministers of "whipping away a ladder of opportunity which they themselves had climbed".
Howard Newby, the President of the Committee of Vice-Chancellors and Principals said that the challenge for universities would be in ensuring new income was "recycled" into bursaries for poorer students.
[15] Howard Newby acknowledged that any further changes to the public funding of universities would need to wait "until after the General Election" although he added "Afterwards, the question is how to bring more resources into higher education.
The Liberal Democrats had made tuition fees a "non-negotiable" element of their election manifesto and therefore a potential stumbling block to forming the coalition.
[18] Speaking following the publication of the report the Liberal Democrats deputy first minister Jim Wallace said "we welcome the fact that Cubie recommends the abolition of tuition fees.
The Scottish National Party's (SNP) John Swinney described the report as a "humiliation" for Labour saying that it left their policy on student financing in "tartan tatters".
[22] Scottish domiciled or European Union students from outside the United Kingdom [21][note 3] who had undertaken a first full-time degree course on or after 1 August 2001 were eligible to pay the endowment.
[26] Following devolution, the Welsh Assembly was given what were known as "secondary legislative powers" which meant that unlike their Scottish counterparts, they were only able to vary some laws set by Parliament in London.
The assembly could vary specified devolved issues including setting and monitoring school standards, the content of the national curriculum and the training and supply of teachers.
[27][28] Maintenance grants, initially up to £1,500 were re-introduced by the Welsh Assembly in 2002 in a move that was, at the time, seen to put pressure on the United Kingdom government who still favoured the use of student loans.
"[29] Speaking about the re-introduction of maintenance grants, the Conservatives education spokesperson Jonathon Morgan said that Labour had performed a U-turn and said that the party should apologise for introducing tuition fees in the first place.
[29] On 22 January 2003 the new Labour education secretary Charles Clarke published a white paper with proposals allowing universities to set their own tuition fees up to a cap of £3,000 a year.
[31] The likelihood of a backbench rebellion from Labour MPs forced Clarke to introduce a number of concessions to the rebels in order to avoid a Commons defeat in a vote held on 27 January 2004.
In their submission to the governments 2004 comprehensive spending review, the lobby group Universities UK requested a further £8.79 billion,[33] a figure it was feared would grow should legislation to increase tuition fees fail.
"[30] Shadow Education Secretary Tim Yeo said in a point of order "It is completely wrong that a bill which imposes higher charges on students attending the English universities should only be carried by this house using the votes of Scottish MPs when the students attending universities in the constituencies of those Scottish MPs do not have to pay those higher charges.
[45] On 9 November 2009 Business Secretary Peter Mandelson announced a further review into fees and university funding in England, led by John Browne, former chief executive of BP.
[46][note 6] Speaking at the launch, Mandelson said that the review would take into account the goal of widening participation in higher education, the need for affordability and the desire to simplify the student-support system.
[47] However, the Russell Group's Wendy Piatt argued that the current level of funding was inadequate, saying "as universities are facing severe economic conditions and ferocious global competition it is clear that the status quo is not viable".
[52] For the Liberal Democrats in particular it was predicted that the review would cause deep political divisions both within their own party and within the coalition government as many had signed a pledge promising not to vote for any increase in tuition fees prior to the election.
[52] Within the media the Financial Times called the report by Lord Browne a "genuinely radical document that would, if implemented, lead to a free-market revolution in higher education provision".
[53] The Guardian's Martin Hall however said that there would be a "social cost of variable tuition fees" and said that institutions rated highest in the league tables would be able to charge more and so force out poorer students.
"[53] For Labour, the shadow Business Secretary John Denham said that the report deserved "careful study" and said that it was "right that some students make some contribution towards their education".
[58] A plurality of Lib Dem MPs (28 to 21) voted in favour of the Bill, including Nick Clegg, Vince Cable, Jo Swinson, Sarah Teather, Ed Davey, Danny Alexander and Steve Webb.
[58] Speaking on the governments victory Business Secretary Vince Cable said the coalition had been through a "difficult test" and added "I think the job now is to try and explain this policy to the country.
Speaking during the debate, the author of the report on which the government proposals were based, Lord Browne, said that he believed the reforms were "essential for this nation to maintain its hard-won pre-eminence in higher education".
[63] The budget announcements further proposed a freeze in the repayment threshold for tuition fee loans at £21,000; a figure which was previously set to rise with average earnings.