The UK government is proposing a levy on international students. Getty Images
The UK government is proposing a levy on international students. Getty Images
The UK government is proposing a levy on international students. Getty Images
The UK government is proposing a levy on international students. Getty Images

UK considering 6% levy on university income from foreign students


Tariq Tahir
  • English
  • Arabic

Universities are facing a levy of 6 per cent on the income raised from overseas students' fees under the UK government’s plans to reduce net migration.

The proposal was put forward in a plan published on Monday, which stated that fees paid by students coming to Britain contribute £12 billion ($15.85 billion) towards the higher education sector.

Fees form part of an overall £20.65 billion contribution to the economy made by international students “but it is right that these benefits are shared”, the government said.

The government is exploring a levy it says will be reinvested in the higher education and skills system and though a figure was not revealed, it is understood to be 6 per cent.

Under the proposals, graduate visas will be reduced to 18 months and the requirements that sponsoring universities must meet to recruit international students will be strengthened.

The UK government said there have been problems involving "misuse and exploitation of student visas" and "too many graduates" who stay in the UK after their studies are not moving into graduate-level jobs.

The plans form part of a pledge by Prime Minister Keir Starmer to significantly reduce migration, which has risen sharply in recent years and led to the rise of the anti-migration Reform UK party.

But university leaders have been warning of significant financial concerns caused by a drop in the number of international students, who can be charged higher tuition fees, following restrictions introduced by the previous, Conservative government, as well as frozen tuition fees paid by domestic students.

Last week, an analysis by the Office for Students, the higher education regulator, forecast that 43 per cent of universities and colleges in England would be in deficit this year.

Nick Hillman, director of the Higher Education Policy Institute think tank, warned the proposed levy on international students “will be seen by many as a tax on a very successful UK export sector”.

Mr Hillman said other ideas were also “problematic”, particularly reducing the length of the graduate visa. He explained that “employers wanted to see an increase to three or four years, rather than a reduction, as new employees take months to become productive members of the workforce”.

British Prime Minister Keir Starmer outlined plans to cut net migration to the UK. EPA
British Prime Minister Keir Starmer outlined plans to cut net migration to the UK. EPA

Vivienne Stern, chief executive of Universities UK, said: “Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging”.

"We would urge government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination,” she said.

Business leaders are also warning that a levy and any restrictions on overseas students could have an adverse effect on the British economy.

Rain Newton-Smith, chief executive of the Confederation of British Industry, said: "Policy changes that risk making the UK a less attractive place to study, or increase costs confronting universities, will have knock-on impacts for the competitive strength of UK higher education as a growth export and young people's ability to access degree-level education at home.

"These trade-offs need to be considered if the government is serious about developing domestic talent and driving growth."

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Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

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Director: Lana Wachowski

Stars:  Keanu Reeves, Carrie-Anne Moss, Jessica Henwick 

Rating:****

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

Wicked: For Good

Director: Jon M Chu

Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater

Rating: 4/5

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

THE SPECS

Engine: 2.0-litre 4-cylinder turbo

Power: 275hp at 6,600rpm

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Transmission: 8-speed dual-clutch auto

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SANCTIONED
  • Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
  • Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB. 
  • Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.  
  • Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
  • Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
Haircare resolutions 2021

From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.

1. 'I will seek consultation from professionals'

You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.

2. 'I will tell my hairdresser when I’m not happy'

Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.

3. ‘I will treat my hair better out of the chair’

Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.

Updated: May 13, 2025, 10:27 AM