UCU reaction to Ed Miliband's corporation tax increase

Through its Knowledge Economy campaign, UCU has highlighted that the UK critically needs to increase funding for tertiary education to close the international competitive gap in investment with other countries. 

The UK invests 1.4 per cent of gross domestic product (GDP) in higher education, compared with the Organisation for Economic Co-operation and Development average of 1.7 per cent. The UK's spending on research and development at 1.8 per cent of GDP is also lower than the EU-27 average of 2.0 per cent. The country has fallen from third among the top industrialised nations in terms of young people graduating in 2000, to 15th in 2013. In the second quarter of 2013, 9.1% of 16-18-year-olds in England were not in education, employment or training.

The union has long since called for a Business Education Tax created through a modest increase in corporation tax, which is currently lower in the UK than many comparable countries. The union has highlighted that while businesses have benefited from those trained and educated in colleges and universities, they have made little contribution to the post-16 sector.

UCU general secretary, Sally Hunt, said: 'The extra revenue created through corporation tax would be better spent on educating the next generation rather than as tax breaks for other companies. Investment in post-16 education has never been more urgent as we can now clearly see the UK is falling behind other countries that have recognised the importance of post-16 education and made it a priority.

'Let's not forget businesses and the country rely heavily on colleges and universities to provide them with skilled and educated employees and that's why UCU has long been calling for a Business Education Tax.'