The vice-chancellor of one of Britain's leading universities has issued a stark warning against the government's proposed levy on international students, calling it 'wrong' and 'not in the long-term interests' of the UK.
Golden Opportunity at Risk
Duncan Ivison, president and vice-chancellor of the University of Manchester, believes Britain faces a golden opportunity to become the global destination for international students as competitors face challenges. With the United States implementing clampdowns and Canada introducing limits on overseas students, the UK stands to benefit significantly.
'Higher education is something the UK does really, really well,' stated Ivison, who took over leadership at Manchester last year. 'That's why I came to Manchester. It is a kind of jewel in the crown. We have a chance to really become a global destination for the best and the brightest.'
Financial Impact and Sector Concerns
The proposed 6% surcharge on international tuition fees, expected to be detailed in Chancellor Rachel Reeves's upcoming budget, could cost English universities more than £600 million annually. For institutions like the University of Manchester, which hosts one of the country's largest international student populations, the impact would be particularly severe.
'It could potentially cost us £20-30 million a year,' Ivison revealed. 'We cannot simply pass on a 6% levy to our international students. We don't think the market will bear it.'
The university would need to absorb these costs from its existing balance sheet, creating significant financial pressure at a time when many institutions are already struggling. Manchester currently enrolls 10,000 international students from more than 160 countries, with Chinese students constituting one in five of all attendees.
Alternative Solutions Needed
While the government intends to use levy proceeds to fund the return of maintenance grants for disadvantaged students, Ivison argues there are better approaches. 'I fully support the return of maintenance grants but I think there are better ways to fund improving support for students,' he emphasized.
The higher education veteran, who previously held leadership roles in Australia and Canada, welcomed the government's commitment to increase domestic tuition fees in line with inflation but urged ministers to reconsider the international student levy.
'I think the international student levy is the wrong policy to implement,' Ivison stated firmly. 'I think it will hurt the sector. I think it's not in the long term interests of the UK either.'
The warning comes as UK universities face severe financial difficulties, with many implementing mass redundancies and course cuts following recent immigration and visa changes that have triggered a decline in international recruitment since 2023.
In response to these challenges, the University of Manchester has launched a £400 million fundraising appeal to build future resilience. 'Philanthropy needs to be a big part of our future,' Ivison explained. 'It gives you a bit of independence from the state and allows you to do things you wouldn't otherwise be able to do.'
