The number of international students in the UK has plummeted by 44% following a government crackdown on visas, according to a new report from the Centre for Cities thinktank. The decline threatens to harm struggling cities outside London and the South East that rely heavily on their universities for economic activity.
The Home Office has been contacting tens of thousands of overseas students to warn they will be removed if they overstay their visas. The Centre for Cities warns that the impact will be felt most acutely in places like Leicester, Plymouth, Hull, and Stoke-on-Trent, where universities play an outsized role in supporting jobs and exports.
Universities have become increasingly dependent on international students, who now contribute about a quarter of total income, up from 5% in 1995. However, this revenue is under threat from restrictions on dependents, a proposed limit on the graduate visa, and a new levy on international student fees.
The report highlights that higher education is among the top ten export sectors in most cities with universities. In Exeter, Dundee, Leicester, and Nottingham, it leads global activity. Local universities also account for a high share of high-skilled knowledge jobs in places like Plymouth (32%), Stoke (31%), Hull (24%), and Sunderland (18%).
Andrew Carter, chief executive of Centre for Cities, said: “Many UK universities are under financial strain, raising questions about their future. Any changes to higher education policy will not be felt evenly across the country. National reforms that weaken the sector risk cutting across the government’s ambitions for delivering growth everywhere.”
A government spokesperson defended the crackdown, saying: “This report rightly highlights the value of our world class universities… We are exploring the introduction of a levy on the money which universities make from international students, which would see the funds reinvested into our higher education and skills system.”
