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Thursday 12 August 2010

The Coalition: 3 Months in Review

Only a few years ago the notion of the Liberal Democrats and the Conservatives working together would have seemed unthinkable. How times have changed.

With no one party winning a majority in the elections, the UK embarked on a journey into the unknown. Would the coalition strengthen or split the country? And most importantly, what did this development mean for our student population? Now more than three months in, the answer is far from clear-cut. Sceptics are shocked by the governments perseverance whilst proponents disappointed at their lack of progress.

In May a surreal event occurred when David Cameron and Nick Clegg gathered the nations media in the garden of Number 10, suddenly bitter months of campaigning appeared to have been a mere illusion to hide their friendship. Issues that had divided their election campaigns became the issues upon which the coalition formed, reducing the deficit, electoral reform and working the country out of recession.

The coalition started well for the Lib Dems holding their own with 5 seats in cabinet. But three months on and the Liberal Democrats face a shocking loss of credibility, with public support down to 16%, and many claiming the Lib Dems have abandoned their principles. Much of this can be placed to the ideological mismatch of the Lib-Con coalition. The emergency budget of June 2nd being a great example of this, an all-blue budget of austerity measures, that left Nick Clegg on the defensive as to his parties role in its decisions.

And as for the Lib Dems electoral reform, one of the key issues throughout the election and upon which the coalition was formed. Recent opinion polls popular support is waning and only with Labours help will the Lib Dems have any hope of passing a reform.

The Conservatives have had a far better time at achieving their goals, the coalition being Liberal in name rather than actions. But whilst David Cameron may be content with his governments actions so far, it is apparent that the honeymoon phase wont last forever. Once the budget cuts start to come into play and the country enters the hardship needed to pay off the deficit, then Cameron will need to employ every tool at his disposal to hold the coalition together.

While the Lib Dems struggle to keep their party in line, and the Conservatives enjoy the calm before the storm, the effect of the coalition on student life has yet to be fully felt. The Lib Dems had planned to scrap tuition fees over three years, but this plan was watered down in coalition negotiations.  Now Vince Cable and the government have begun to float the idea of a Graduate tax (or contribution as they would rather it called), and whether it becomes policy come October or not, its safe to say that students will continue to pay more year-on-year for higher education.

One change, however, which is sure to make a mark in student finances is the VAT hike to 20% come the new year. This increase of 2.5% is set to make the January sales a little more expensive than usual, and will definitely make those shopping sprees come student loan day, a little less common.

Three months in review, I dont believe the country got the party it wanted, but it just might have got the party it needed in a time of financial crisis. The coalition is set for trying times, and with the Lib Dems already feeling the strain its hard to say if it will last a full parliament. For us students in the meantime, tighten your wallets, the next few years look expensive.

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