Labour government needs to give universities a break

The Guardian reports that university leaders are warning of financial turmoil in British higher education after new figures suggested a collapse in international student numbers would deprive the sector of vital income and undermine its future.

The paper says that the sector’s leaders have called on the government to rethink the levy on international student fees imposed under Keir Starmer, as a former universities minister warned there was a risk of a university “going under” because of the financial crisis:

While UK sixth-formers enjoyed improved A-level results, and a record 194,800 English 18-year-olds were accepted by their first choice of university, vice-chancellors who spoke to the Guardian said it would not be enough to stave off further erosion in staff numbers and courses.

Figures published by the Home Office show student visa applications to the end of July fell 11% compared with the previous year. With summer visa applications coming before the start of the academic year in autumn, the gloomy figures mean many UK universities will experience significant losses if the trend continues, with some fearing international enrolments dropping by 30%.

Prof Shitij Kapur, the vice-chancellor of King’s College London, said the fall in international student numbers was “in line with the pessimistic expectations” and may also reflect a drop in postgraduate applications earlier this year.

Kapur said: “The critical thing is what this cycle will entail, which does not become clear till about October. The simple rubric is that every five international students impact one university job. And these falling numbers will invariably impact the financial health and staff complement of universities.

The paper quotes Libby Hackett, the chief executive of the Russell Group, who argues that recent analysis shows that the decline in international students means the UK has lost out on a net economic benefit of nearly £3bn, while Vivienne Stern, the chief executive of the Universities UK group of vice-chancellors, said the student visa figures “should be a wake-up call” for policymakers:

“There are plenty of people in government who understand the pressure on the sector, they understand how important universities are for local economies and for domestic students, and they are watching this with concern,” Stern said. “I hope those people are knocking on the door of the [Department for Education] and the Home Office, and saying that they can do one thing tomorrow that will help universities, and that is to quietly drop the idea of taxing international student fees.

“I understand the political pressure around immigration, and the UK university sector has to be a good, responsive partner with government in making sure the system works the way it should. But if the government was seeking to reduce overseas student numbers, I think they have overcorrected. What we need is stability and a bit of help to recover our competitive position internationally.”

The government needs to get a grip on this issue. At present their immigration controls are causing a funding crisis in higher education, there needs to be a policy adjustment and quick.