Andrew McGettigan

In June​, Philip Hammond, in his last few weeks as chancellor of the Exchequer, wrote to the candidates vying to succeed Theresa May as leader of the Conservative Party and asked them to pledge that, if elected, they would retain his target of bringing down national debt as a percentage of GDP. ‘If we do not commit to getting our debt down after a nine-year run of uninterrupted...

Student loans are in principle a straightforward business. The government lends students money; after they graduate, they begin repaying it. From the perspective of politicians and the Treasury the advantage of loans over grants is clear: the money isn’t simply given away, it comes back over the lifetime of the loan. Even better, in the national accounts the loans are classified as ‘financial transactions’, not ‘expenditure’.