Miliband’s pledge to cap tuition fees at £6000 will cost the treasury £800m which would be paid for by increasing the corporation tax paid by banks and extra student loan interest rates charged to graduates earning £65,000 or over per annum.
Labour's new policy on student tuition fees is a departure from the graduation tax they proposed at the last election a policy. The Conservative dominated coalition, who trebled tuition fees after the 2010 election were quick to accuse Miliband of a “U” turn. David Willetts, the coalition universities minister, said: "Ed Miliband has now accepted that tuition fees should be doubled to £6,000 a year. He has consistently supported a graduate tax and Labour MPs were whipped to vote against higher fees at the end of last year. This monumental U-turn is evidence of weak leadership."
Miliband told Andrew Marr on Sunday that the change was another step away from what he calls as the "fast-buck" economy and said:"We face big choices and tough choices in this country. Do we cut taxes for financial services, do we carry on with a fast-buck economy, or do we change course? Do we say invest in the future of our young people?
By announcing plans to reduce the £9000.00 per year maximum universities are able to charge for university education, the Labour leader is sending a clear message to students that tuition fees are firmly back on top of the political agenda.