Victory for Lib-Tory

Following weeks of anticipation and days of confusion, conversation and coalition, we now have a stable government (at least for the time being!), lead by the Tories' David Cameron, aided by Nick Clegg and his cohorts of Liberals. A theoretical look at this partnership would suggest the Liberal Democrats and Conservatives will struggle to work alongside one another. However, on reflection, there may be areas where the two parties have similar ideas. We took a short look at the impact of the alliance for students, graduates and young professionals over the next few years.
 

Whichever way the situation is looked at, the end point is clear – the Lib Dems are going to have a big part to play in our immediate future. Following Gordon Brown's resignation, and the host of new "Tony Blairs" looking to become the next Labour leader (including the Miliband Brothers), the Lib Dems are still taking all the headlines when it comes to the government for the next five years. Nick Clegg will not become Prime Minister, but his position as leader of the Lib Dems and junior partner within the alliance means that in many areas of the economy, he will have an important say with regards to policy. The Lib Dems' own views on education seem to differ somewhat to the views of the Conservative Party, with a clear focus on scrapping the 50% at university scheme initiated by the Labour party a few years ago. They have set a clear precedence to reallocate public spending from universities to apprenticeships, internships and other non-traditional methods of education. This could lead to a range of scenarios; however, we can be pretty sure that funding to universities will drop, leading to our academic institutions needing to raise finances from other areas. If the Lib Dems do have a say in the fees issue, then expect final year fees to be abolished, and a change in the way in which students are funded.

An agreement over education is going to be complex, as Labour and the Tories' policies seem to have more in common with each other than they do with Nick's team. Both seem to be focused on increasing the number of university graduates. This will certainly fit well with the universities, whose 'more-bums-on-seats' policy can only lead to further funding for universities themselves. And whilst the Tories will also focus on apprenticeships and the like, their determination to increase university places will certainly put them at odds with the Lib Dems. Political ideology is still at the forefront of policy making, with the Tories offering incentives for early repayment of students' loans.

The other area of significant interest for students and young professionals will be the job market. Conservatives' focus will always be on lower taxes, a policy which is one of the common ideas between the coalition. They both have a clear initiative to encourage the economy to grow through natural forces, with a reduction in "red tape and bureaucracy" to allow businesses to help refuel the economy, and thus create a new jobs market.

However, one area all can be certain of is the increase in funding for (and, dare I say it, reliance on) enterprises. It seems as if new SMEs (small and medium enterprises) will be looked upon to create wealth and jobs for our recovering economy, and the parties are certainly looking to ensure that the new generation of Alan Sugars, Theo Paphitis' and Richard Bransons pull us through by heavily supporting new firms. So if you want a guaranteed job for the next five years, you may want to seriously consider branching out on your own.

Vinay Trivedi