Threatened Crackdown on Graduate Visas Could Severely Impact London Universities, Warn Higher Education Chiefs

A potential crackdown on graduate visas would hit London universities particularly hard, higher education leaders have warned, emphasizing that foreign students contribute twice as much to the UK economy as domestic students.

London Higher, representing over 50 universities in the capital, joined recent warnings from institutions in Scotland and northern England, cautioning: "The fate of London’s universities hangs in the balance."

Dr. Diana Beech, Chief Executive of London Higher, stated, "Despite being the envy of the world and a key source of skills and jobs across the region, London’s universities are facing an uphill battle to balance the books following years of frozen domestic student fees, anti-London funding formulas, and tightening immigration measures."

The Cabinet was expected to review the current post-study work visa on Wednesday. This visa allows international students to remain in the UK for two years after graduation.

Prime Minister Rishi Sunak has emphasized that universities should serve as centers of learning for the "best and the brightest," not as gateways for back-door immigration. However, the Government seems reluctant to take a severe stance, to the dismay of some Conservative Right-wingers.

Foreign Secretary Lord Cameron told peers on Tuesday that there was "no limit" on the number of international students who can come to the UK as long as they have an English-language qualification, highlighting the "soft power" benefits to Britain.

Ms. Beech cautioned, "Now is not the time to play politics with one of the country’s greatest export industries and national assets. Restricting the graduate route won’t get us any closer to meeting the pledge to ‘stop the boats’. All it will do is ‘stop the hopes’ of domestic students, employers, and local economies as international students take their skills, talents, and cash elsewhere."

The Government has already restricted the ability of foreign students to bring relatives, but is considering further actions amid pressure to reduce record overall immigration numbers ahead of an election this year.

New statistics on long-term migration are due out on Thursday, and ministers are expected to announce their response. The Migration Advisory Committee recently found no evidence of widespread abuse of the graduate visa route.

London Higher emphasized that one-third of all international students in the UK – 179,000 – study in London, with their fees subsidizing those paid by British students.

The net economic impact of the 2021/22 cohort of international students in London on the UK economy was £9.59 billion, translating to an average net impact of £131 million per constituency, according to London Higher. This net impact includes their higher fees and spending on UK services such as accommodation, amounting to £1,040 per resident, almost double the national average contribution per resident.

Their spending benefits not only traditional Russell Group universities in London but also smaller institutions like training academies and music conservatoires.

Citing data from the Migration Observatory, London Higher noted that 15 percent, or 52,500, of students who arrived in 2021 obtained a work visa, but up to 80 percent return to their home countries after graduation.

Some observers urge the Prime Minister to exclude international students from Britain’s net migration data, as most eventually return home. This change would align the UK with practices in Australia, Canada, and the United States.

The Migration Advisory Committee, which informs Government visa allocation targets, warned last week that some university courses would become "less financially viable" if the number of international students is reduced.