The BBC reports what has been rumoured in Whitehall: the government is not giving serious consideration to a graduate tax, which would have incurred enormous upfront costs. Politically, the Liberal Democrats must abolish tuition fees, or at least tame their impact on the poorest. The government is considering a diluted grad tax which would stagger loan repayments for some. It is not clear if that would be determined by family background, institution, degree class, degree subject, or future earnings – and it sounds fearfully complicated. From what I hear, the most likely outcome remains a tuition fee hike.