Hysteria over student visas is damaging our reputation and Britain’s future growth
THE UK’s higher education sector is an export success story. Only the United States recruits more international students. Those from outside the European Union contribute £2.5bn each year in fees to our universities and spend a further £2.5bn while they are here. If students in further education and private sector colleges are included, the figure rises to £8.5bn. And financial contributions are just the beginning.
The reputation and quality of UK universities draws the best and brightest students from all over the world. Many of these graduates go on to contribute to our businesses and research institutions. Even those who leave upon the completion of their studies maintain trade and business connections. In a recent survey of international graduates, four out of five said that they planned to develop professional links with businesses in the UK in the future.
There are good reasons beyond economics to prize these students. Four years ago, I met the son of a Malaysian Prime Minister who regretted the weakening of British influence. He attributed this decline to the Thatcher government’s decision to make universities charge overseas students substantially more in fees. Going to university in the UK had meant that people like his father and Singapore’s Lee Kuan Yew were positively influenced by this country’s thinking and remained, broadly, friends and supporters of British links throughout their political careers.
Today, that Malaysian leader is Prime Minister himself. Like his father, he went to university in Britain. In business and geopolitical terms, it is vital that future leaders from the Bric nations, the Middle East, and other strong economies of the future have positive formative relationships with the UK. The direction of current government policy is putting that at risk.
The government has made a rod for its own back with the pledge to reduce net migration to the “tens of thousands” by the end of the parliament. As a result of focusing on this sole measure of success, those coming from outside Europe to study are being lumped into the category of “undesirables” by the tabloid media.
International applicants are sensitive to bad press. The publication last year of Home Office proposals to reform the student visa system generated very negative publicity in several of our key markets. “UK visa rules may force Chinese student exodus” and “India upset over UK visa rules”, warned headlines in The China Daily and The Hindustan Times respectively.
There is a growing perception in these countries that the UK is becoming less welcoming of foreign students. A survey this week will show some universities reporting 40 per cent falls in Indian student numbers. India is the world’s third fastest-growing economy, and one with which we have had historic educational links. In 2010, the UK attracted 58,000 students from India, more than any other country. The key question is: for how long will this continue?
This month, the government announced further curbs on international students, targeting their ability to work for a period following graduation. The Home Office is worried that they may be displacing UK graduates in the labour market but the evidence for this is minimal. The graduate job market is extremely tough, but for reasons far broader than the competitive presence of international students.
Post-study work in the UK is part of the attraction for international students. A survey by the National Union of Students showed that three-quarters of international students viewed the post-study work visa as a very important factor in their decision to study here. It was so critical that, were it to be abolished, two-thirds said they would not recommend the UK as a study destination.
That is not an empty threat. Students can easily take their business elsewhere. The market for international students is fiercely competitive. The UK’s market share fell over the last decade and will continue to drop if the government does not change course.
Following a recent review, Australia has adopted provisions very similar to those we are abolishing. These will allow international students to work for four years after graduation. Not surprisingly, the media reaction there to the UK’s visa proposals has been of a rather different nature – The Australian proclaimed the UK reforms to be “an own goal”.
We recommend one simple policy change straight away: remove students from migration figures while they are studying. Like tourists, they are temporary residents and should be treated as such. If they stay to work after graduating, incorporate them at that point. The government has set itself the task of reducing net migration below the 100,000 mark. In doing so, it must be careful not to turn yesterday’s established success story into tomorrow’s tale of decline.
Simon Walker is director general of the Institute of Directors.
It’s vital that future foreign leaders have positive early relationships with the UK.