The majority of constituencies likely to take the biggest economic hit from the UK\u2019s proposed levy on international student fees are held by Labour, a new analysis has found.<\/p>\n
In a second report on the potential impact of the proposed\u00a06 per cent tax on universities\u2019 overseas earnings, consultancy firm Public First estimates the overall cost to the UK economy at \u00a31.8 billion in a single year.<\/p>\n
The study, commissioned by a group of leading universities, looks at the likelihood that the UK will lose the \u201cgross value added\u201d by international students as well as the money they pay directly in fees.<\/p>\n
Public First has previously projected a loss of more than 16,000 international students in the first year<\/a>\u00a0\u2013 and 77,000 cumulatively in the first five years \u2013 if universities were to pass on the cost of the levy in the form of higher fees.<\/p>\n Nine of 12 UK regions would lose over \u00a3100 million each if this was the case, the study estimates. But the impact would not be felt evenly<\/a>, given international students \u201ctend to be concentrated in certain areas, usually around one, or several, large universities\u201d.<\/p>\n London would see the biggest impact and lose \u00a3480 million, Scotland is the next hardest hit with a loss of \u00a3197 million although the government has previously said the policy would apply in England only.<\/p>\n The other most affected regions include the south east of England (\u00a3163 million), the West Midlands (\u00a3141 million) and north-west England (\u00a3139 million).<\/p>\n A constituency-by-constituency breakdown also shows the uneven impact of the proposed policy.<\/p>\n Prime minister Keir Starmer\u2019s Holborn and St Pancras seat is top of those most affected with a \u00a372 million loss. The most affected constituency outside London is Coventry South, held by Zarah Sultana, formerly a Labour member who now sits as an independent and is in the process of setting up her own left-wing party with former Labour leader Jeremy Corbyn.<\/p>\n In total, 37 of the top 50 most impacted constituencies are currently seats held by Labour MPs.<\/p>\n Backbench Labour MPs are already known to have expressed concerns to ministers about the potential impact of the levy. It was also criticised earlier this year<\/a> by Labour mayor of London Sadiq Khan. The government has promised to release more details before the autumn budget at the end of November.<\/p>\n Commenting on the findings, Natasha Chell, partner at Laura Devine Immigration, said: \u201cThe proposed levy risks sending a damaging signal to prospective international students at a time when the UK is actively competing to attract global talent. The levy flies in the face of the government\u2019s objective to attract the brightest and best talent,\u00a0while overlooking the vital contribution international students make to the economy and to the UK\u2019s skills pipeline \u2013 including in shortage occupations.<\/p>\n \u201cAt a moment when long-term immigration and labour market strategies depend on a steady inflow of skilled individuals, introducing a levy is not only disappointing but potentially harmful to one of the UK\u2019s most successful export industries.\u201d<\/p>\n