Economic case for international students in UK “overwhelming”
- A cross-party group of politicians has found that international students make a huge economic impact on a regional level in communities around the UK.
- A new report recommends that the Graduate Route should stay in place unchanged.
- Government urged to deliver detailed regional data on international students and their post-graduate work, keeping this information separate from other groups to highlight the temporary nature of student migration.
International education should be embedded into regional development strategies rather than sidelined as a standalone policy area, the UK’s APPG for International Students has warned.
Its latest report outlines the “overwhelming” case for international students in the UK, with higher education now the largest export industry in 26 UK parliamentary constituencies and ranking among the top three exports in over 100 constituencies.
“Currently, multiple strategies operate in parallel – from regional industrial strategies and national skills plans to tourism and trade promotion – yet few explicitly coordinate around international education despite its cross-cutting importance,” wrote Lord Karan Bilimoria and Abtisam Mohamed MP, co-chairs for the APPG for International Students.
“This represents a significant missed opportunity, as international students don’t just attend our institutions – they shop in our high streets, rent in our housing markets, volunteer with our charities, and often stay to fill critical skills gaps in our NHS, technology sector, and other essential services.”
International students don’t just attend our institutions – they shop in our high streets, rent in our housing markets, volunteer with our charities, and often stay to fill critical skills gaps
Lord Karan Bilimoria and Abtisam Mohamed MP, APPG for International Students
As a result of the inquiry and its findings, the APPG for International Students has made a number of recommendations for government, education providers, and regional authorities, which it says will “strengthen education-to-employment pathways that benefit local communities and bolster the UK’s global competitiveness”.
The recommendations are:
- To establish individual international education strategies within each of the devolved regions, aligned to national strategies for education.
- Government should deliver detailed regional data covering students, their dependants and post-study employment, distinguishing the temporary nature of student migration.
- Universities, colleges and schools should deepen regional collaboration to maximise the positive impact of international students.
- To meet the needs of regional employers, the Graduate Route should remain unchanged.
- Skills England should create a clear strategy to revive international education below degree level to boost funding for providers meeting regional skills needs and support regional growth.
The UK sector is awaiting the release of the government’s refreshed international education strategy, due in the coming months.
The APPG’s recommendations follow the UK’s immigration white paper, which proposed cutting the Graduate Route from two years to 18 months. Report authors, including Bilimoria and Mohamed, argue that retaining the full two years is vital for employers to offer “meaningful experience” within regional businesses.
As the government continues with its efforts to cut net migration, including through its ban on almost all student dependants, the report warns that a reduction in student numbers would have “minimal” local disruption in London, but in places such as Manchester, Sheffield and Exeter, this could significantly undermine regional prosperity.
Beyond the headline £41.9 billion annual contribution, regional analysis shows that every £1 million in university revenue generates £2.3–£2.5 million in local economic output, supporting jobs across a wide range of sectors.
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