Blair scrapes through on top-up fees showdown

It was close, but the government's controversial proposals for university funding made it through the Commons last night by a meagre five votes.

The legislation was passed by 316 to 311, and so the Higher Education Bill will now progress onto its second reading in the House of Lords – where the government is sure to receive another rough ride.

While the legislation survived the vote, it was a Pyrrhic victory for Mr Blair who watched his commanding 161-seat Parliamentary majority slump to just five. This was the closest the Opposition and rebels had come to defeating the government during its seven years of office.

Rebels had been confident of overturning the bill, but the last-minute U-turn by ringleader Nick Brown – a key ally of the Chancellor – proved decisive. He and, it is thought, brought around 30 other MPs with him across the lobby. In the end, the size of the Labour rebellion was around 70 MPs.

The Tories have claimed that the Prime Minister's "credibility was left in tatters" after the vote.

The collapse of Labour's majority and the telling intervention of Gordon Brown had contrived to seriously undermine Mr Blair's authority, the Conservatives said.

Shadow Education Secretary Tim Yeo added: "This is the government's flagship Bill of this Parliament. This is a Prime Minister who nailed all his authority to this Bill. And the result has been one of the biggest rebellions of Labour MPs against the Bill, against the government, but most telling of all against the Prime Minister himself.

"It is one of the biggest rebellion of Labour backbench MPs - ever! This vote is not a win. It is a personal humiliation for the Prime Minister."

Conservatives largely opposed the bill on the grounds that it could lead to enormous student debt by paving the way to top-up fees of £10,000, while "doing nothing to tackle the university funding crisis".

The Lib Dems leader Charles Kennedy described last night's vote as a "shabby compromise" and a "dodgy deal" between the Prime Minister, the Chancellor and backbenchers.

He added: "It's a poor reflection of the government of the day and will be very damaging for the Prime Minister.

"This may prove to be a hollow victory for the government. It's certainly not a victory for future students, particularly those from poorer backgrounds, who will face massive debts. And it's not a victory for universities, who will still be under funded.

"The Liberal Democrats will maintain our campaign for the principle of funding higher education out of fairer taxation."

The Bill's proposals include: abolition of upfront fees; a guaranteed minimum package of £3,000 for the poorest 30% of full-time students; an increase in students loans to cope with a rise in fees; repayments linked to graduates’ wages when they earn £15,000 or more, payable through the tax system; and a cap to ensure that any debts outstanding after 25 years will immediately be written off.

Under plans for variable fees, universities could expect to receive around £1 billion a year more in tuition fees – making £1.8 billion in total.

(gmcg)