Study highlights foreign students’ contribution to U.K. economy

They add £25.8 billion to the U.K. economy, their contributions are spread across the country, it says

March 06, 2017 10:49 pm | Updated 11:11 pm IST - LONDON

Numbers drop: An education exhibition held by the British Council in Bangalore.

Numbers drop: An education exhibition held by the British Council in Bangalore.

Pressure is building on the U.K. government to review its approach to international students, as a new study revealed the huge economic contribution they make to the economy, and official figures showed a sharp drop in numbers.

International students add around £25.8 billion to the U.K. economy, with their contribution spread across the country, including the more deprived regions, according to research by Oxford Economics for Universities U.K., the body that represents the nation’s universities. According to the research, international students paid £4.8 billion pounds in tuition fees, and billions on goods and services and activities on and off campus. They also helped support around 2,06,600 jobs in the year 2014-2015. Students from non-European Union (EU) countries accounted for a large percentage of fees paid, totalling £4.2 billion.

“The spending of international students and their visitors now provides a major export boost for the U.K. economy,” said Julia Goodfellow, President of Universities U.K., adding that there was potential for the U.K. to grow its share of the global market for higher education.

“To do this we must present a welcoming climate for genuine international students and ensure that visa and immigration rules are proportionate and communicated appropriately. This will be even more important as the U.K. looks to enhance its place in the world post-Brexit,” she said.

According to immigration figures published by the official statistical agency last month, 41,000 fewer international students came to study in the U.K. in 2016, the lowest since 2002. Indians accounted for just 6% of student visas granted in 2016, with a total of 10,798 visas granted. Earlier this year, Indian’s High Commissioner to the U.K., Y.K. Sinha, highlighted the drop, pointing to the fact that many were now choosing other countries, including the U.S., Germany, Australia and France.

Major deterrents

Pressure has been building for a while now for the U.K. to reform its approach to international students. While there is no cap on the number of students who can come to the U.K., and Britain insists that it welcomes the “brightest and the best”, there are a number of factors that are making Britain a less-attractive destination for Indian students, including restrictions on their ability to work here following the end of their degree.

International student numbers are also counted in net migration figures — despite surveys suggesting that three quarters of the British population doesn’t consider international students as migrants.

There are also concerns that with the government set on reducing net migration figures, there is little incentive for it to take a more welcoming approach towards students. On the contrary, Home Secretary Amber Rudd announced last year that the government was considering a tougher regime for international students. Further, earlier this year, the government rejected a bid by members of the House of Lords to remove international student numbers from migration figures.

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