Pressure on Tories as Labour offers to back compromise on student loans
1 min read
Labour has piled pressure on the Government by offering to back a compromise deal that would see eye-watering student debts slashed.
Shadow Chancellor John McDonnell said he would back any “significant step” that would see fees cut and the £21,000 earnings threshold at which graduates pay their loans back raised.
Labour promised to completely scrap student fees at the recent general election, and Chancellor Philip Hammond has since hinted that some form of change is on the way.
In an interview with the Sunday Times, Mr McDonnell said Labour would vote with the Conservatives if a compromise was offered that would reduce the burden for students.
“What I am saying to him is if he comes forward with effective proposals on thresholds and interest rates then we will support him. It has got to be a significant step,” he said.
“Because the Tories increased fees from £3,000 to £9,000, it has pushed the system into implosion.
“Seven out of 10 students aren’t going to pay it back so someone has got to sort the system out because it’s imploding around our ears.”
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