Vince Cable shrugs off report ruling out graduate tax

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A report into university funding by Lord Browne of Madingley has decided against making graduates pay more through the tax system.

His findings will provide ammunition for Tory MPs and others opposing moves by Business Secretary Vince Cable to impose a new system of "graduate contribution".

The review will publish its findings next month and is expected to call instead for a big rise in tuition fees of up to £25,000 per student.

But Mr Cable's Department for Business Innovation and Skills insisted today that Lord Browne's recommendations would not be binding on the coalition government.

"Although we will take it seriously, the Government is not committed to any of the recommendations. This is just an independent report, it is not government policy," a spokeswoman said.

"We have yet to see the report because it is independent and we will wait until it has been officially given to us. Lord Browne has done a lot of valuable work on this."

Departmental sources also pointed out that both Mr Cable and Higher Education Minister David Willetts have advocated a greater "graduate contribution" to help fund the mounting costs of universities. Liberal Democrats view the idea of some form of graduate tax as central to coalition agreement.