Report Warns UK International Fee Levy Could Slash Student Enrolments by 77,000
2 Min Read
The United Kingdom’s higher education sector could face a severe blow if the government proceeds with plans to impose a levy on international student fees, a new report has warned.
According to think tank Public First, the proposed 6% levy could deter around 16,100 international students from studying in the UK in its first year alone. Over the course of five years, that figure could rise dramatically to more than 77,000 students, costing the UK economy an estimated £2.2 billion.
The government has suggested that universities could absorb the cost by passing it on to international students through higher tuition fees. Public First, however, cautioned that such an approach would be highly damaging, with fee hikes likely to drive students to competitor destinations. The think tank projected a 6.38% increase in international student fees would be required for universities to pass on the full cost of the levy – a rise they believe would be far more damaging than government forecasts have assumed.
Jonathan Simons, partner at Public First and author of the report, said the potential consequences were “much more severe than had been predicted previously”. He warned that around 40% of universities are already in deficit, meaning the levy could deepen financial strain, reduce domestic student places by 135,000, and damage vital research capacity.
Sector leaders also warned of the wider economic consequences. Henri Murison, chief executive of the Northern Powerhouse Partnership, said the policy was opposed by all major regional employer groups. “The resulting decline in international students would be hugely damaging to regions across the country,” he said, urging the Chancellor to reconsider.
The levy, first proposed in this year’s immigration white paper, has been widely criticised by the higher education sector. A separate analysis by HEPI last month estimated that universities could lose £621 million if the plan goes ahead, with metropolitan institutions likely to be worst affected.
With international students contributing significantly to both the economy and the vibrancy of UK campuses, critics argue that the levy risks undermining one of the country’s most successful export industries.
Source: THE PIE NEWS
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