The Scotsman

Hammond tells young: We won’t let you down

- By PARIS GOURTSOYAN­NIS

The Scottish Government has come under pressure to raise the level at which graduates start repaying student loans following an announceme­nt yesterday by Theresa May.

In a bid to win back young voters flooding to Labour, the Prime Minister said graduates in England will only start repaying their student debt once they are earning £25,000 a year, up from the current threshold of £21,000.

While Scottish graduates do not have to repay their tuition fees, repayment of student loans of up to £5,750 per year begins at a much lower level, once graduates are earning £17,775.

The Conservati­ves and Labour called on the SNP to respond to the Prime Minister’s announceme­nt by easing the repayment terms for Scottish students.

Scottish Labour education spokesman Iain Gray MSP said: “The SNP government should ensure the threshold is lifted in the next budget. Every year that goes by without this happening is another year that sees graduates miss out. This would be an important step in delivering a better deal for young graduates and SNP ministers should not drag their heels in delivering it.”

And Scottish Conservati­ve leader Ruth Davidson said: “We already committed to increasing the threshold in our 2016 Holyrood manifesto. It’s time for the SNP to step up.”

Mrs May also pledged tuition fees in England will be frozen at the current £9,250 level until 2019, rather than increase with inflation by £250. The Tories will also extend the Help to Buy scheme, with £10 billion invested to support an additional 135,000 first-time home buyers.

“Too many young people fear they are going to be worse off than their parents,” Mrs May said. “We have listened to those concerns and we are going to act to offer a fairer deal for students and young people.”

But the move was derided by First Minister Nicola Sturgeon, who said on Twitter: “A freeze in already exorbitant tuition fees is hardly a revolution. Why not follow @thesnp @scotgov and abolish tuition fees?”

A Scottish Government spokeswoma­n said it would “consider carefully” what impact the increase in the repayment threshold would have.

“Free university tuition forms the core of our offer to A fired-up Theresa May last night held Ruth Davidson’s hand aloft and told cheering Scottish Conservati­ves: “We saved the Union!”

Casting aside questions over her future and the fallout from a dismal general election campaign, the Prime Minister celebrated the Tory breakthrou­gh in Scotland at a reception on the first night of her party’s conference in Manchester.

“We didn’t get the result we wanted but together we saved the Union,” she said, before thanking Ms Davidson for defeating Angus Robertson, the former SNP Westminste­r leader and a frequent tormentor at Prime Minister’s Questions.

“Elections can be strange things,” Mrs May added, addressing a crowd that included her husband, Philip. “You get 42.4 per cent, you get 2.3 million more votes, the highest percentage share for over 30 years, 12 more elected MPS in Scotland – but you lose your majority. There we are.”

Ms Davidson also hailed the two biggest upsets of election night in Scotland, welcoming the defeat of Mr Robertson in Moray and Alex Salmond in Gordon. “Or as I like to call it, work and pleasure,” Ms Davidson quipped.

Mrs May was also treated to a chorus of “Happy Birthday” as she turned 61. students and we are absolutely committed to maintainin­g the policy,” the spokeswoma­n said.

“It means that over 120,000 undergradu­ates studying in Scotland each year do not incur debts of up to £27,000 to pay for university education, unlike their peers elsewhere in the UK.”

She added: “Our independen­t review of student support continues and will report its recommenda­tions this autumn.

“This government remains committed to providing the lowest income students with a bursary, unlike the UK government; average levels of student loan debt in Scotland remain the lowest in the UK, and students from the lowest income households benefit from a minimum income guarantee of £7,625, including a bursary of £1,875.” Chancellor Philip Hammond will defend the Conservati­ve Party’s economic record, promising to ensure young people are better off than their parents and promising the next generation: “We will not let you down.”

Mr Hammond is expected to tell delegates in Manchester that Labour’s “dangerous and outdated ideology” would harm prosperity amid concern that Jeremy Corbyn’s party is denting the Tories’ economic credential­s.

The Chancellor will say: “Our economy is not broken: it is fundamenta­lly strong.

“And while no-one suggests a market economy is perfect, it is the best system yet designed for making people steadily better off over time and underpinni­ng strong and sustainabl­e public services for everyone.

“As this model comes under renewed assault, we must not be afraid to defend it.

“The market economy frees people and businesses, encourages them to create, take risks, give ideas a go because they can see the results and benefit from their success.

“It’s the profits from such businesses that underpin our savings and our pensions. And the wealth that a strong market economy creates which, in the end, pays for our public services. Mr Hammond will add: “We are the party of progress. The party that makes a clear commitment to the next generation – that they will be better off than us; and that their children will be better off again than them.

“This is the Conservati­ve definition of progress and I pledge to the next generation: We will not let you down.”

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