Independent Group: Read the key passages from Chuka Umunna's policy document

MP wants means-tested tuition fees, a new ‘citizens service’ for young people, and the end of PMQs

Chuka Umunna, the spokesman for the Independent Group of breakaway MPs, has released a 50-page policy pamphlet outlining his views on everything from taxes to tuition fees.

The former Labour MP said he was sharing the ideas in a “personal capacity”, rather than establishing a manifesto for TIG – the 11-member collective he helped set up last month.

So what exactly is Mr Umunna’s vision for Britain’s future? We’ve taken a look at some of his key policy principles:

Tuition Fees

Mr Umunna wants means-tested tuition fees and the reintroduction of maintenance grants to help poorer students – without “wasting money” on the wealthiest students by axing fees altogether.

He writes: “Rejecting the simplistic policy of scrapping all fees does not mean that we should put up with the status quo. Far from it. But progressives must be prepared to say where we think a policy, no matter how popular, is not the best use of public money.

“In this case a more targeted approach would achieve significantly better social mobility outcomes for the same cost. Which is why rather than scrapping fees altogether we should favour means-testing fees and reinstating maintenance grants.”

NHS

The TIG spokesman suggests a “hypothecated” tax to tackle the NHS crisis, where the revenue from a specific tax would be ring-fenced for the health service.

“When it comes to funding, the majority of people would be prepared to pay more. However, the current National Insurance system is ineffective, a hypothecated (tax) is now needed. If voters can see the link between what goes out of their pay packet and into the NHS, it will make the case for giving the NHS the resources it needs much more powerful.”

“It need not be the only revenue stream for the NHS – if it were, the danger is the service would receive less revenue in a recession and more at times of growth – but it would certainly help bring the public round to paying more tax for something they treasure.”

Taxes

Mr Umunna calls for a tax hike on shareholders receiving dividends. He wants to end the “manifest unfairness” of dividend income being taxed at as low as 7.5 per cent – far lower than the 20 per cent basic rate of income tax. He also wants to “incentivise” companies to tackle boardroom pay.

“It’s simply wrong that those with the most resources are benefiting from lower rates of tax than the tens of millions of hard-working families. And they are doing so at huge cost to the exchequer.

“We urgently need to put in place a regulatory framework to incentivise companies to adopt pay structures for senior executives based on long-term equity and debt holdings: linking pay packages to the long-term fortunes of the company, with shares vesting over periods of at least five years, will encourage company leaders to take a longer-term view.”

Renationalisation

The MP wants to replace some of the privatised utilities with “public benefit companies” – while avoiding the “old-school renationalisation”.

“Not only is the price tag for traditional renationalisation huge, but those industries’ borrowings would become part of the national balance sheet – restricting a progressive government’s ability to borrow for priorities like infrastructure investment.

“An incoming progressive government could legislate to force companies providing key public services to write the provision of public benefit into their constitution, taking precedence over profit-making. It can then insist on taking a “foundation share” in each company as a condition of its operating licence.”

Citizens Service

Mr Umunna suggests a new “Citizens Service” giving young people the chance to take part in voluntary work. He thinks it could help “bring people together as they begin their adult life”, but stresses it would not be a return to mandatory military service.

“As progressives we should be prepared to get beyond visions of the past and create a version of national service that succeeds for today’s world in achieving the one thing that those who actually undertook it are pretty much agreed on; it brought people from an array of different backgrounds and different parts of the country together in a way like no other.

“Let’s be clear. This is not a call for compulsory military service – whatever other objections it’s the last thing the armed forces say they want. Instead this is a call to look seriously at developing a programme of national service that will have the effect of bolstering social cohesion for generations to come.”

Chuka Umunna addressing the press conference where the formation of TIG was announced (Stefan Rousseau/PA Wire)

Ending Prime Minister’s Questions

Mr Umunna thinks the “circus” of PMQs should be scrapped and MPs be moved to a “horseshoe” shaped chamber to make politics less adversarial. He also proposes voting at 16, the state funding of political parties and the adoption of the additional member system – a form of proportional representation.

“Parliament’s culture and ways of working need to be overhauled. It operates like a giant ornament stuck in a time warp instead of a modern legislature. PMQs is a circus which does a disservice to public debate and on a weekly basis illustrates all that is wrong with the status-quo: witless, tribal, unoriginal, uninspiring.

“To invigorate democracy in an increasingly diverse country the next radical government might consider a new citizenship package: voting at 16, polling stations in schools combined with a compulsory civics GCSE and compulsory voting in one’s first election.”