Principal calls for graduate tax

Dr Lang said a graduation tax would be a fairer system for all

The principal of St Andrews University is calling on the Scottish Executive to consider a graduate tax to help fund higher education.

Dr Brian Lang told a conference in Edinburgh that funds for Scots universities are eclipsed by sums going to English and US institutions.

Education Secretary Fiona Hyslop said she was currently looking at student finance.

However, she said she had no plans for a graduate tax or a funding inquiry.

While acknowledging that the issue of student finance was a contentious one, Dr Lang said the introduction of a graduation tax would be fairer for all students regardless of their economic background.

Enhanced earnings

He said: "For one thing the rate of tax levied can be in direct proportion to the financial benefit from enhanced earnings that the four or so years of university have brought to the graduate.

"Graduate taxation might help to do away with the argument that fees are expected to be paid by impoverished undergraduates, because the tax payments would in reality be made by rather well-educated graduates, and even then only when they have found paid employment.

"The notion of 'student debt' and its role in discouraging entry to higher education, would be substantially modified."

The annual spend at Edinburgh University is £450m - half the level at Cambridge and far below the £3bn at Harvard.

Dr Lang claimed that the discrepancy in funding was putting pressure on Scottish principals who are struggling to hang on to key staff who are offered better salaries and laboratories by rival universities around the world.

The one-day conference, Higher Education and the Economy, aims to stimulate debate on the challenges faced by Scottish higher education.