Miliband takes a pay cut of £7,000

Cutting his own pay by nearly 7,000 is "the right thing to do" as the Government prepares to announce severe spending cuts, Mr Miliband said.

His move – which will reduce his salary to 132,387 – follows David Cameron's decision to cut pay for Ministers in the coalition by five per cent as soon as he became Prime Minister. Labour Chief Whip Rosie Winterton will also take a five per cent pay cut.

"I've made the decision to follow their lead, I think it's the right thing to do," said Mr Miliband, MP for Doncaster North. "They've (the coalition] made that decision and that's a decision I respect."

In his first interview since making his debut at Prime Minister's Questions on Wednesday, Mr Miliband also stood by his commitment to a graduate tax – warning sceptics including Shadow Chancellor Alan Johnson: "I'm the leader".

He pledged to examine the review published this week by Lord Browne. It rejected a graduate tax, which would mean big earners pay back more than those on lower incomes, in favour of increasing tuition fees – but said he still believed in his leadership policy pledge.

It puts him on collision course with his Shadow Chancellor, who said during the leadership campaign he was "surprised and disappointed" at Mr Miliband for proposing the policy.

In an article the day after Mr Miliband won the leadership, Mr Johnson, who steered through tuition fees when he was at the Department for Education, wrote: "For goodness' sake, don't pursue a graduate tax. We should be proud of our brave and correct decision to introduce tuition fees."

But Mr Miliband told the Yorkshire Post: "I do favour a graduate tax. I said that during the campaign and that remains my view. I will obviously look at the Browne Report – and I am looking at the Browne Report to see what the right response for us is and what is practical – but I am someone who believes in the graduate tax.

"The reason I believe in it is because of its principles underlying it. What are those principles? It's about fairness of contribution, which I'm afraid I don't think the Browne proposals fulfil because you can end up, if you're on middle incomes, paying more potentially than those on higher incomes.

"It's also a principle that where you go to university shouldn't be determined by the amount of money that is being charged and I really worry about the impact of B's proposals of variable fees on determining where people go."

Asked if he could unite the party behind his plan, he said: "I think people realise I'm the leader of this party and everyone will accept collective responsibility. But I think it's right we look at the Browne Review, it's a serious piece of work, and we look at what the right response to it is."

Mr Miliband argued for a graduate tax during the leadership election, as did Ed Balls. They believe it is more progressive because high earners pay more in contrast to the tuition fees system where students pay back the cost of their course irrespective of how much they earn.

Lord Browne concluded the graduate tax was unworkable, however, and proposed raising the cap on tuition fees – currently just over 3,000, which could see students paying up to 12,000 a year for the best courses.

Ministers are currently considering the report, with the Liberal Democrats facing embarrassment and a rebellion from many of their MPs who signed pledges before the election vowing to oppose any increase in fees.

Today, Mr Miliband is back in his constituency for the first time since becoming leader, including a visit to Outwood Academy, formerly North Doncaster Technology College.