By Jamie Arrowsmith
Higher education is an export worth more to the UK economy than tobacco. Rebranding international students as an immigration issue will do real damage to businesses, say Jamie Arrowsmith and John Foster
Since 2019, this government has been quietly delivering one of the most successful strategic policies in recent memory. The target: to drive a step change in education exports, increasing their value to £35bn by 2030, by encouraging more overseas students to further their studies on our shores.
The ‘international education strategy’ – very clearly an export and growth strategy – set an ambition to host at least 600,000 international students a year. Other countries offer incentives to attract students, so then Prime Minister Boris Johnson responded in 2021 by introducing the graduate visa, allowing international students to remain in the UK for two years following graduation.
The strategy has been a success, and research shows the additional economic impact from increased international student numbers since 2019 sits at £60bn. That’s why many will be stunned to see the government potentially throwing away these significant economic benefits by making them subject to a rushed review, to be published today, which the Migration Advisory Committee warned did not have time to collect evidence. This approach seems highly political, putting short-term electioneering before the longer-term needs of universities, students and the wider economy. Far from celebrating an export that now [in 2021] contributed more to the UK economy than crude oil, or beverages and tobacco, our leading position with international students is being wrapped into wider rhetoric around immigration, re-marketed as a short-term political win – while ignoring the real damage that limiting numbers would do to the UK economy and businesses.
International students have a choice on where to study and the fact so many choose the UK is a welcome success story in difficult times. At global level, it demonstrates post-Brexit soft power, with our universities rightly admired for the quality of their teaching, research and innovation. A UK degree is highly sought after, with the UK second only to the US in attracting international students to come and study.
Overseas students subsidise the teaching of domestic students, so fewer international students will mean fewer places for UK students too. They also subsidise the research and innovation needed for economic growth across the country. It may be easy to shrug and see this as a niche issue, but research commissioned by UUK shows one intake of international students in 2021/22 made a net positive contribution of over £37bn to the UK economy over the duration of their studies. This figure shows the positive financial impact goes far beyond the course fees; it is the cumulative knock-on effect of those fees, living expenses and family visits to the national and, often overlooked, local economy.
In effect, international students are the ‘silent engine’ of levelling up. Every pound they spend to live and study here goes back into our economy, driving growth at local, regional and national level. This supports local employment at universities and drives significant investment in parts of the country often overlooked by Westminster – from major construction projects to expand university campuses to demand for retail and hospitality. Uniquely, because of the spread of our universities, this financial boost is distributed right across the UK from Paisley to Penzance – not contained to London and the south-east or a golden triangle.
It is perplexing that government is now signalling it could turn off the tap on this vital income stream for our universities and their communities. Any reduction will mean fewer opportunities for domestic students as universities struggle financially, exacerbating our skills gap and hobbling our ability to innovate and increase competitiveness in post-Brexit markets. It will also reduce growth in regional economies, employment and infrastructure.
This is not conjecture. The uncertainty caused by the current narrative is already hitting the numbers of overseas students coming to the UK, impacting on local economies and sustainability of universities, with many cancelling planned investments. Many voters want to see that immigration is controlled, but this can be achieved in a way that does not make the UK poorer. But businesses and communities across the UK will feel the consequences of government actions taken now for years to come. Gambling with one the UK’s primary export successes and sacrificing UK brand capital for the possibility of a short-term political gain, would be short-sighted at best and reckless at worst.
Jamie Arrowsmith is director of Universities UK International. John Foster is chief policy and campaigns Officer at the CBI
