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London's international students prove lucrative for UK economy, claims study London's international students prove lucrative for UK economy, claims study
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International students in London contribute net gains of £2.3bn a year towards the UK economy, yet many of them say Britain’s immigration system has negatively affected their experience of studying here, according to a study.International students in London contribute net gains of £2.3bn a year towards the UK economy, yet many of them say Britain’s immigration system has negatively affected their experience of studying here, according to a study.
The report by the business lobby London First and the PricewaterhouseCoopers (PwC) consultancy aims for the first time to quantify the economic costs and benefits of non-EU international students studying at the capital’s universities to both London and the UK economy.The report by the business lobby London First and the PricewaterhouseCoopers (PwC) consultancy aims for the first time to quantify the economic costs and benefits of non-EU international students studying at the capital’s universities to both London and the UK economy.
Far from being a burden to public services such as the NHS, the report says international students contribute £2.8bn in fees and consumer spending, supporting nearly 70,000 jobs in London, while the cost of providing them with public services is £540m.Far from being a burden to public services such as the NHS, the report says international students contribute £2.8bn in fees and consumer spending, supporting nearly 70,000 jobs in London, while the cost of providing them with public services is £540m.
Yet more than a third of students surveyed said the complexity of the immigration system had impacted negatively on their experiences as students here. The vast majority also said they found it difficult to secure work in the UK after completing their studies.Yet more than a third of students surveyed said the complexity of the immigration system had impacted negatively on their experiences as students here. The vast majority also said they found it difficult to secure work in the UK after completing their studies.
Related: No Theresa May, we need those foreign graduates | James DysonRelated: No Theresa May, we need those foreign graduates | James Dyson
The report reflects widespread concerns about anti-immigration rhetoric surrounding international students who are currently included in the government’s net migration target, and fears that Britain’s higher education sector is losing out to other countries which are seen as more welcoming.The report reflects widespread concerns about anti-immigration rhetoric surrounding international students who are currently included in the government’s net migration target, and fears that Britain’s higher education sector is losing out to other countries which are seen as more welcoming.
Jo Valentine, chief executive of London First said: “International students are made to feel unwelcome because of anti-immigration rhetoric – and the fact that they are currently included in the government’s net migration target. But students’ expenditure here is a modern-day export: they pay substantial fees and contribute significantly in consumer spending. Jo Valentine, chief executive of London First, said: “International students are made to feel unwelcome because of anti-immigration rhetoric – and the fact that they are currently included in the government’s net migration target. But students’ expenditure here is a modern-day export: they pay substantial fees and contribute significantly in consumer spending.
“As a matter of priority, our new government should follow the lead of Australia and Canada and reclassify international students as temporary visitors, not migrants. It makes no sense to imply through classification and rhetoric that they are unwelcome, which is harming our universities’ abilities to sell education to talented students around the world.”“As a matter of priority, our new government should follow the lead of Australia and Canada and reclassify international students as temporary visitors, not migrants. It makes no sense to imply through classification and rhetoric that they are unwelcome, which is harming our universities’ abilities to sell education to talented students around the world.”
The report calls for a “proper debate about creating an immigration regime that welcomes those who contribute economically to our country”.The report calls for a “proper debate about creating an immigration regime that welcomes those who contribute economically to our country”.
It echoes appeals to the government by leading figures in higher education, business and the arts, not just to remove international students from migration targets but to make it easier for graduates to stay and work in the UK. Under current immigration rules, students wishing to stay on in the UK after completing their studies need to work for a single employer and earn a minimum of £20,800.It echoes appeals to the government by leading figures in higher education, business and the arts, not just to remove international students from migration targets but to make it easier for graduates to stay and work in the UK. Under current immigration rules, students wishing to stay on in the UK after completing their studies need to work for a single employer and earn a minimum of £20,800.
The status of international students is just one of the issues in new universities minister Jo Johnson’s inbox, but one he has considered before. Three years ago he co-authored a piece in the Financial Times which suggested foreign students should be taken out of the net migration target.The status of international students is just one of the issues in new universities minister Jo Johnson’s inbox, but one he has considered before. Three years ago he co-authored a piece in the Financial Times which suggested foreign students should be taken out of the net migration target.
According to the report, in 2013/2014 there were almost 67,500 international students attending London universities – making up 18% of the total student population in the capital, and 22% of the 310,000 international students across the UK. According to the report, in 2013-14 there were almost 67,500 international students attending London universities – making up 18% of the total student population in the capital, and 22% of the 310,000 international students across the UK.
Related: Why international students are choosing LondonRelated: Why international students are choosing London
They contribute £1.32bn in fees; £1.36bn in subsistence spending, and £121m from from their friends and families who visit them in the UK. And despite Home Office concerns about international students overstaying after completing their studies, the report says only 12% stay in the UK after graduating.They contribute £1.32bn in fees; £1.36bn in subsistence spending, and £121m from from their friends and families who visit them in the UK. And despite Home Office concerns about international students overstaying after completing their studies, the report says only 12% stay in the UK after graduating.
Their positive influence extends beyond the money they spend too. Among foreign students surveyed for the study, 60% said they were more likely to do business with the UK as a result of studying here.Their positive influence extends beyond the money they spend too. Among foreign students surveyed for the study, 60% said they were more likely to do business with the UK as a result of studying here.
Julia Onslow-Cole, head of global immigration at PwC, said: “While politicians recognise the importance of international students, there has been considerable debate over the economic value.Julia Onslow-Cole, head of global immigration at PwC, said: “While politicians recognise the importance of international students, there has been considerable debate over the economic value.
“This is the first study to quantify the benefits of student migration. We need more hard data like this to inform immigration policies and targets. The £2.3bn benefit of international students illustrates there is a huge amount at stake.”“This is the first study to quantify the benefits of student migration. We need more hard data like this to inform immigration policies and targets. The £2.3bn benefit of international students illustrates there is a huge amount at stake.”
Nicola Dandridge, chief executive of Universities UK, said following a period of decline, there were now signs of potential growth in international student recruitment to the UK.Nicola Dandridge, chief executive of Universities UK, said following a period of decline, there were now signs of potential growth in international student recruitment to the UK.
“However, a number of worrying signs remain – not least a drop in those taking Stem courses and the continued decline in Indian students, following a remarkable 49% drop between 2010 and 2012.“However, a number of worrying signs remain – not least a drop in those taking Stem courses and the continued decline in Indian students, following a remarkable 49% drop between 2010 and 2012.
“International students make an extremely valuable contribution to the UK, both academically and financially.“International students make an extremely valuable contribution to the UK, both academically and financially.
“If the UK wants to fulfil its potential in this growth area, it must present a welcoming climate for genuine international students and ensure that visa and immigration rules are consistent and properly communicated.”“If the UK wants to fulfil its potential in this growth area, it must present a welcoming climate for genuine international students and ensure that visa and immigration rules are consistent and properly communicated.”
Responding to the report, immigration minister James Brokenshire said: “The independent Office for National Statistics uses the United Nations definition of net migration – just like all of our international competitors – which includes students.Responding to the report, immigration minister James Brokenshire said: “The independent Office for National Statistics uses the United Nations definition of net migration – just like all of our international competitors – which includes students.
“And it is right to do so. All immigrants who are in the UK have an impact on our communities, on housing and on our public services. The latest ONS estimate shows that while 133,000 non-EU students came to Britain in the last year only around 48,000 left the country – a gap of 85,000.“And it is right to do so. All immigrants who are in the UK have an impact on our communities, on housing and on our public services. The latest ONS estimate shows that while 133,000 non-EU students came to Britain in the last year only around 48,000 left the country – a gap of 85,000.
“The government will pursue further reforms to tackle abuse while continuing to attract the brightest and the best to our world-class universities. The latest figures show this strategy is working – university applications from overseas students are up by 18% since 2010, with applications to our world-leading Russell Group institutions up 30%.”“The government will pursue further reforms to tackle abuse while continuing to attract the brightest and the best to our world-class universities. The latest figures show this strategy is working – university applications from overseas students are up by 18% since 2010, with applications to our world-leading Russell Group institutions up 30%.”