Levy on International Students Could Cost North East Tens of Millions

Local TV

A proposed 6% levy on international student fees to pay for reinstated maintenance grants could cost the North East up to £87m in year one and hit universities including Newcastle and Durham hard, campaigners warn.

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00:00The North East economy could be facing a major financial blow, with warnings that tens of

00:05millions of pounds could be lost if the government's proposed new tax on international student

00:10fees goes ahead. University and business leaders are urging Labour ministers to reconsider

00:15the plan, warning it could undermine one of the region's most important economic assets.

00:21Under Labour's proposal, a 6% levy would be added to the tuition fees paid by overseas

00:26students in England. Education Secretary Bridget Philipson says the money raised would help

00:33reintroduce means-tested maintenance grants, a form of support for students from lower-income

00:38households that were scrapped by the Conservatives in 2016. But universities and business leaders

00:44say the policy could backfire badly, particularly here in the North East, where international

00:49students play a crucial role in sustaining local economies. Two of the region's biggest

00:55institutions, Newcastle University and Durham University, are among the most vulnerable

01:00to this new levy. According to research from the Higher Education Policy Institute, the levy

01:06could cost Durham £10 million and Newcastle £9 million, placing them among the top 20 worst

01:12affected universities in the country. The Russell Group, which represents the UK's leading universities,

01:19says international students make up almost a third of the student population in the North East,

01:24and account for over a quarter of their collective income. They warn that universities are unlikely

01:29to absorb the levy themselves. Instead, they may be forced to increase tuition fees for

01:34overseas students, making the UK less attractive at a time when international numbers are already

01:41failing and budgets are tightening. I spoke with students and locals to find out their thoughts

01:46on this proposal. Yeah, I think instead of charging international students, like students from

01:53wealthier backgrounds could be charged more. Yeah. No, well, I definitely think they should

01:57bring back maintenance grants for students. We enjoyed that when we were students at university.

02:03Yes, we did. We did. I had a grant that covered everything because I came from a home, you know,

02:10where there wasn't a lot of money. And without that grant, I couldn't have gone to college and,

02:15you know, teacher training. So yes, definitely. The number of international students have gone down

02:22in the UK. So I think they're quite worried about it. So I think this will just exacerbate that. So I'm not

02:27sure. But I definitely understand why they want to get that extra money. I think that's just because

02:32of the economy, you know? Yeah. But then I think the low income households should probably be given

02:40some money back where that money would have to come from and get. A study by Public First predicts

02:45the North East could lose £87 million in the first year alone due to a projected fall in international

02:51student numbers, with a national drop estimated at 77,000 students over the five years.

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