Browne’s proposals lift the cap on tuition fees from £3,290 today to £6,000 from 2012, with universities able to charge more if they pay a levy. He has broadly retained Labour’s repayment mechanism, where graduates repay the costs of tuition and living expenses once they start to earn. However, he has introduced a real rate of interest and a higher threshold for any payments, at £21,000 instead of £15,000 today. A graduate earning £30,000 a year pays back just £16 a week in his system. Importantly, part-timers would be included as eligible for proper loan support for the first time: a huge step forward in terms of equity.

The coalition was right to reject a graduate tax, as Labour did in government. As Browne points out, it would penalise low earners more (starting at £6,475, the point where people start paying tax), be harder to collect from European students, not give universities the money they need now and impose a lifetime of repayments on every graduate.

Our universities need extra income to compete, and this is particularly true of our leading research universities, who have welcomed these moves. However, we should not ignore the concerns of the newer teaching universities. Baroness Blackstone, a former higher education minister, argued on the Progress website recently that the new system could deprive them of sufficient teaching resources. That’s because the coalition is cutting 80 per cent from the government’s teaching grant as the new system is introduced.

So, Miliband should avoid the mistakes made by the Tories in opposition, when they voted against tuition fees despite having established the Dearing review in government (with Labour support) which they knew would recommend fees. Instead, he should recognise that Browne has many of the advantages of the graduate tax he supports, without the disadvantages – not least because it builds on the system Labour developed in government.

But Miliband should argue four things. First, the proposed cut in teaching funding for universities is too great and should be reduced, so that they see some added benefit from the new regime. Second, there should continue to be proper monitoring and publication of how universities distribute bursaries for poorer students, with much better publicity of what’s on offer. Third, students should be able to see clearly how much contact time their courses provide and they should have more access to academics. This will become a much bigger issue when the higher fees are introduced. And there should be an upper limit on the new fees, of £7,000 or £8,000, so that students do not feel completely priced out of our top universities.

And then Labour should either support the government, or, if Miliband feels the final package is lacking, abstain. He should not ally himself with Liberal Democrat rebels. To do so would exchange the short-term discomfort of the coalition for his longer-term credibility as a serious leader. The Tories did this to us in 2005, when top-up fees were introduced, and Michael Howard suffered for it. They admit they were wrong. Labour’s new leader should be bold enough to avoid the same mistake.