Clause 23 - Condition that may be required to be imposed by English funding bodies
Higher Education Bill
2:30 pm
Mr Graham Allen (Nottingham North, Labour)
Let me finish my argument, then I shall give way.
There is also a technical point to the amendment. Economists have observed that the rate of inflation in the public sector is higher than in manufacturing because the scope for productivity gains is far more limited. Relative costs escalate by an estimated 0.5 per cent. per annum, because education has to compete with businesses for the same pool of workers, yet the latter enjoy the benefit of greater productivity gains. Were we to tie universities to £3,000—even if it were justified, according to the standard level of inflation—we would effectively reduce their income year on year. However inadequate the language, amendment No. 144 seeks to deal with that question.