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Foreign students fear "Britain is closed for business"

The immigration cap is deterring foreign students from applying, says Universites UK head Steve Smith.

I recently spent an enjoyable afternoon interviewing the head of Universities UK, Steve Smith, about the future of higher education. You can read the interview in full here but below are some of the highlights.

The immigration cap is deterring foreign students

As a result of the coalition's cap on immigration, Smith told me, other countries fear that Britain is "closed for business".

"On every single international visit I've been on this year it's been the only issue that's been discussed," he said. "I did a big conference at the British Council in Hong Kong, I was with Clegg in Brazil. In both those meetings the question was: "Is Britain closed for business?"... Although we won, the damage inflicted by what was said was significant."

George Osborne boasted in his Budget speech that Britain was now "open for business". Not all of his intended audience, it seems, agreed with him.

Cable has abandoned higher education policy to Willetts

Unusually, the government's recent white paper on higher education was presented to the House of Commons by David Willetts, the universities minister, rather than Vince Cable, the Secretary of State for Business and the man officially responsible for policy in this area. . Even the Speaker was caught out, mistakenly calling Cable to the dispatch box before Willetts's statement.

Has the Business Secretary subcontracted universities policy to his deputy? "Frankly, it is indeed Willetts that we do all the discussions with," Smith told me. "Our reading of it is that he [Cable], in essence, leaves Willetts to deal with the universities situation."

The government will bail out bankrupt universities

Under the Willetts model, money will follow the student, meaning that some universities dramatically expand, while others shrink. Is it conceivable, I asked Smith, that some institutions will go bankrupt? "To be candid, ministers from all parties talk about the rigours of the market, my experience is that they never live up to it in practice." In some communities, he pointed out, the university is one of the largest, if not the largest, net contributors to the economy.

"I don't think they'll let institutions go bankrupt because I think they'll work out what it would mean for the local economy." Like the banks, the universities, it appears, are too big to fail.

The Scottish problem: "an anomaly that can't stand"

Unlike their English counterparts, Scottish students continue to enjoy free higher education, courtesy of Alex Salmond's SNP administration. However, while Scottish universities are legally obliged to also offer free entrance to European Union students a loophole means that they are able to charge English students fees of up to £9,000 a year. Does Smith think the UK government should intervene?

"That announcement shocked me," he said. "They [the SNP] had made such principled statements in the past about how iniquitous fees were and then they announced that they were going to allow institutions to charge £9,000." He added: "I suspect the government will do something ... It does seem very odd to me that someone can come from France and get the same terms as someone in Scotland but if they come from England they pay £9,000. That seems to me an anomaly that can't stand in the long-run."

Tags: David Willetts  tuition fees  Vince Cable  universities

14 comments

I ALBION's picture

What immigration cap? it is just spin spin spin....meaning lies!

Louis Coiffait's picture

V. interesting stuff, thank you George (& Steve). I just edited a book about the future of HE (http://pearsonblueskies.com/) and one major theme was understanding that we need to get it right on our little island because there are some major global trends which will punish us if we don't (rising economies, demographics, technology).

Sanne's picture

I'm not Scottish - nor English for that matter - but I have to agree with one of the previuous posters. It's ridiculous to blame the SNP. It's the current UK government who has decided to increase fees, not the SNP. Why would you expect Scotland to chip in and pay for the education of all those that would migrate to Scotland in order to avoid the fees policy imposed by Westminster?

As for the 'anomaly', EU law requires EU member states to treat citizens from other EU member states residing in their country the same as their own citizens. Which is exactly what Scotland is doing.

Yonmei's picture

Stuart, I note that your "endless research" somehow has not provided you with any citations to back up your claim that Scotland sends less to Westminster every year than the block grant. And you evidently think that demanding that other people "prove their statement" will cover your inability to prove yours.

Stuart Eels's picture

Yonmei

I know quite well what I'm talking about I've done endless reserach on it, the fact that the man who devised it to last "only a couple of years" forty years ago is so ashamed that it carries his name! That he would advise "any man living in Manchester to move to Scotland."

Scotland has never made a nett contribution to the United Kingdom and now Alex Salmond and the SNP have realised it they now want Independence lite. Well we English don't we want you to have your full independence!

Yonmei's picture

Sanne: "Why would you expect Scotland to chip in and pay for the education of all those that would migrate to Scotland in order to avoid the fees policy imposed by Westminster?"

Because the English really haven't got a clue that Scotland is a different country, and we do things differently there.

Stuart: "I know quite well what I'm talking about I've done endless reserach on it"

But not enough research to know that Scotland sends more revenues to the Westminister treasury than we receive in the block grant?

Lou's picture

On the final paragraph and the Scotland Uni charges for English students versus overseas or Scottish students, how is the Govt going to be able to address English students having to pay? Either their own legislation will have to change completely, the biggest u turn thus far in the political life of the Coalition or Govt will have to foot the difference. The latter will lead to legal challenges of unfairness and discrimination against other non Scotland based students.

This is going to be a very sticky issue for the Govt but in all honesty, I think the status quo will remain contrary to Steve's assessment for the reasons above mentioned.

Stuart Eels's picture

Lou

This is not a new problem, when Labour first introduced fees the devolved Scottish government immediately said they would not be charging their students, nor European Union members students but they would be charging English and Welsh students. The Welsh Assembly then "found ways" to grant the cost of their sudents fees anywhere in the UK.

The "found ways" was an increase in the Barnett Formula from the UK tax payers the majority of which are English!

So then as now the English students ended up as theonly students within the United Kingdom paying fees!

Yonmei's picture

"They [the SNP] had made such principled statements in the past about how iniquitous fees were and then they announced that they were going to allow institutions to charge £9,000."

Well, yes. But it's no use blaming the Scottish government for that - it's the Tories and LibDems currently in power in Westminister who have decided that English and Welsh students shall pay fees of up to £9000.

It would be iniquitous to blame the Scots - or any of our political parties - for a policy instituted at Westminster under Labour, and continued and expanded from Westminister by the Tories and LibDems.

We (the Scots) can't save you from the imposition of your own government.

Can I ask how many of the English and Welsh reading this column who nod at the unfairness of the Scottish government imposing the standard English and Welsh fees on English and Welsh students, were actively opposed to the poll tax being inflicted on Scotland a year before it was inflicted on England and Wales? Or who demo'd against the Scottish heavy industries being sold off?

The response of Scotland to the Thatcher years was to vote the Tory rascals out and keep them out: to oppose the Thatcherism of Blair as soon as we had the political power to do so.

Sadly that wasn't the English reaction. But don't blame the Scots for it.

Stuart doesn't know what he's talking about - the Barnett Formula recognises the political reality that Scotland is a net contributor to the United Kingdom, even with the Barnett Formula in place. Why should we support you?

Stuart Eels's picture

Yonmei

Why don't you answer the question instead of evading it it with a trite phrase like "But not enough research to know that Scotland sends more revenues to the Westminister treasury than we receive in the block grant."

I merely asked you to prove it twice, so I will try again, prove your statement with facts!

shaheed 79's picture

This is the legacy of the last right-wing labour regime of 14 years that did so much to attack its own supporters. Of course, the then government Ministers and MP's had Student Grants and their Fees paid when they went to university.What Hypocrites!!No wonder they lost the election - they deserved to lose for their shameful policy here and starting an illegal war.

C Baker's picture

This is a tricky situation. I can only tell of the real life situations I have encountered regarding foreign students.

Firstly, there are the many under 18's that come to learn english in the summer from the eu. Well that is not stopping- going on as before.
Then there are the non eu students. It is a shame to think that visa restrictions may mean they can not study here and bring their money to spend on accommodation in the local economy. But why? I have a friend who has had 6 out of 100's of non eu students that have stayed with her, overstay in england or go to scotland and work, basically as illegals. Great, bright people. The colleges were legitimate. There surely must be a way where legitimate colleges can keep an eye on visas and overstayers. Also, colleges must be vetted more closely, especially bogus internet ones etc.
Now, the lovely people that overstayed,(very friendly, nice people) are no doubt working hard and would love to be able to stay legitimately. But most are in catering jobs. The thing is, that we have to manage immigration numbers, so it may be tricky to allow all on the student visa route to stay as numbers could get huge.

A fellow foreign student on a uni phd engineering course, was offered a temporary job in a top company after paying 12,000 for her course, but was refused a visa.

So is the UK closed to foreign students, or can they stay if offered a full time vacancy of a high level job?

What is it we are faulting here? Too high uni fees for foreign students, meaning they go else where to study? That may be a problem.

But with some, it is the desire to work in the UK and stay here permanently, doing any job, that is the problem. Do we allow them to stay without question, because we want their initial uni or college fees so much and accommodation fees. It is tricky with UK youth and graduate employment being so high, to allow no restrictions on foreign students and turn a blind eye to overstayers and bogus colleges and marriages.

All the students I met, were great, bright english speaking young people wishing to get on. But they were not after a college course so much, as a permanent route in to the uk. If this is beneficial economically to the UK, maybe let more in, but numbers and the jobs market does need some regulation to safeguard those here already.

Luddite's picture

The immigration cap is deterring foreign students: No it isn't, it's preventing bogus students from applying for bogus places.

Stuart Eels's picture

Yonmei

After your somewhat crude reference to me, I politely answered the comment, I had expected you to have come back to this thread with written confirmation of your assertion, still waiting!

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