The United Kingdom’s higher education sector is bracing for a financial blow following a proposal for 6% international student levy.
A report by the Higher Education Policy Institute (HEPI) has revealed that the proposed international student levy could potentially cost universities £620 million annually.
Pan-Atlantic Kompass reports that the international student levy was outlined in the recent government’s immigration white paper,
However, an independent researcher, Mark Fothergill, in the latest report by HEPI, said that the levy could impact the global competitiveness of British universities, particularly as they rely heavily on international student fees to subsidize research and teaching.
A breakdown of the report showed that research-intensive institutions like University College London (UCL) may face a loss of £42 million, the University of Manchester may face a loss of £27 million, and King’s College London may face a loss of £22 million.
“International students are the backbone of our higher education system, contributing over £10 billion in fees to English universities – around £4.50 of every £10 of fee income,” Fothergill said.
“No wonder the 6% levy is seen as a tax on one of the country’s best-performing sectors,” he added.
With more details expected in the autumn budget, universities are left with two options: pass the cost on to students and become less competitive, or absorb the costs and leave less funding for teaching and research.
Also, HEPI director Nick Hillman, said: “Threatening an expensive new tax on one of the country’s most successful sectors with only a rough idea of how the money will be used seems far from ideal.
“Currently, the levy is a shadow looming large over universities as they prepare for the next academic year.”
