Universities are warning plans to curb international student numbers will hurt the economy. Getty Images
Universities are warning plans to curb international student numbers will hurt the economy. Getty Images
Universities are warning plans to curb international student numbers will hurt the economy. Getty Images
Universities are warning plans to curb international student numbers will hurt the economy. Getty Images

Rusticated! Britain's student boom faces death knell from new migrant rules


Nicky Harley
  • English
  • Arabic

Times of plenty for British universities that have recruited older and more qualified students to the UK in recent years could soon be over as the government seeks to clamp down on families arriving for higher education.

With one in five visas given to dependents of foreign students last year, the UK’s Home Secretary Suella Braverman is proposing new restrictions on close relatives as part of her latest immigration reforms.

It comes as the UK is recording a boom in the number applying for sponsored study visas, with 485,758 granted last year — a record high. That is 81 per cent more than in 2019.

But with latest figures showing international students contribute around £30 billion annually to the UK economy, questions have been raised over Ms Braverman's judgment.

Adam Habib, director of SOAS University of London, the world's leading institution for the study of Asia, Africa and the Middle East, told The National: “The plan to limit dependents of foreign students will have a negative impact on international student enrolment.”

Adam Habib, of SOAS, has urged the UK not to take measures to curb international student numbers. Getty Images
Adam Habib, of SOAS, has urged the UK not to take measures to curb international student numbers. Getty Images

“It is worth noting that the financial viability of British Higher Education relies on expensive international fees and these fees are used to subsidise research and the education of British students.

“There are moral questions to be asked about a higher education sector which separates families from each other. This is not tenable if we aspire to be an equal and empathetic partner in the global community of nations.”

UK's net migration reached record high last year

Ms Braverman proposed a crackdown after coming under pressure when it was revealed net migration had reached a record 504,000 in the year to June.

Targeting international students has been one of her measures to reduce the figures but it has been met with fierce opposition from universities and even from those within her own party.

Chancellor Jeremy Hunt fears it will inflict “major damage” on the UK economy, sources say.

Universities say a “blunt ban” will also inflict significant damage on the UK’s relationship with key partners such as India and Nigeria.

Will student curbs damage relations with India and Nigeria?

The most recent data from the Higher Education Statistics Authority shows that between academic years 2020 to 2021, and 2021 to 2022, there was an increase of 74,840 (or 12 per cent) in non-UK student enrolments, to 679,970.

This was largely driven by an increase in non-EU students from 452,225 to 559,825 (up 24 per cent).

There were 29 per cent more sponsored study visas granted in 2022 than in 2021.

In 2022, more than a fifth (22 per cent) of all sponsored study related visas granted were to dependants of students (135,788), compared to 6 per cent (16,047) in 2019.

The highest number of dependants (60,923) of sponsored study visa holders came from Nigeria, increasing from 1,586 in 2019.

Indian nationals had the second highest number of dependants, increasing from 3,135 to 38,990.

There were almost 120,000 dependant visas granted to the top five nationalities — Nigeria, India, Pakistan, Bangladesh and Sri Lanka — in 2022.

“Since 2019, both the total number of dependants and the proportion of all sponsored study related visas granted to dependants have increased,” the Office of National Statistics said.

“This may reflect a change in the composition of students, if for example, there are a greater number of older students attracted to study in the UK.

“When looking at the proportional change in visa grants to dependants, by nationality, Nigeria saw a large increase in the proportion of sponsored study related visas granted to dependants, from 19 per cent in 2019 to 51 per cent in 2022. Indian nationals also saw an increase in the proportion of dependants, from 8 per cent to 22 per cent.

“Outside of the top five nationalities, the increase in proportion was more modest (from 4 per cent to 6 per cent).”

Prime Minister Rishi Sunak and Home Secretary Suella Braverman
Prime Minister Rishi Sunak and Home Secretary Suella Braverman

Universities UK told The National it is “vital” Britain continues to attract international students.

“International students contribute massively to our universities both on and off campus,” it said.

“The high levels of interest in our universities from the international community highlights the world-leading status of our institutions, and it is vital that the UK remains an open and welcoming destination for international students, and that their contribution is recognised and valued.”

The move to put curbs on foreign students is a reversal of the work by the government’s International Education Champion Professor Sir Steve Smith who has been working with nations to increase the numbers of international students.

The government’s own 2019 International Education Strategy pledged to increase education exports to £35 billion per year and be attracting 600,000 foreign students by 2030.

“We recognise that growth in the number of dependents has raised some questions,” Universities UK told The National.

“We would emphasise that this increase in part reflects the government’s focus on certain priority countries within the International Education strategy, and the relative growth in the number of international students studying at postgraduate levels.

“The vast majority of students are not accompanied by any dependents, while the minority that are must pay the NHS surcharge up front and demonstrate they have the necessary funds to support themselves and their families.”

The students applying for visas for their dependents must pay their application fee and the Immigration Health Surcharge up front and also prove that they have £845 a month for courses in London or £680 a month for courses outside London for each of their family members.

“These costs, on top of the University fees international students must pay to study here, mean that an applicant would need to have significant financial reserves in order to make the student route a viable option for relocating to the UK with ‘five or six’ dependants,” Immigration firm Smith Stone Walters said.

Professor Ian Walmsley, Provost of Imperial College London, said international students are “irreplaceable”.

“The UK government estimates we need at least an additional 150,000 researchers and technicians by 2030 to reach our science goals,” he told The National.

“We have no chance of achieving this unless we can support the education of UK Stem students and attract the best and brightest international students.

“Our international students make an irreplaceable contribution to the UK economy — worth around £29 billion a year — which we cannot afford to lose.

“International students are also entrepreneurial and start companies here that create jobs, fuel innovation and benefit society.

“We must signal, now more than ever, that the UK is open to international talent. It is in the interests of everyone in the UK to do so.”

A recent poll, commissioned from Public First by Universities UK, revealed that the UK public are not in favour of cutting the number of international students.

It showed the public strongly supported the contribution international students make to the UK.

The majority (62 per cent) recognised that international students gave more to the economy than they took out, and 43 per cent thought that British diplomacy benefits from hosting international students, who leave with positive impressions of the UK after studying here.

Only 32 per cent of the public believed that international students should be classed as immigrants in official figures, the poll revealed.

“The public understands the enormous contribution that international students make to our economy, institutions and research outputs, as well as enormously benefiting the UK’s international reputation,” said Vivienne Stern, Chief Executive of UUK.

“Our international institutions are cherished by the public, and we would hope that government policy follows suit.”

Gillian Keegan, the Education Secretary, has reportedly also pushed back on Ms Braverman’s plans.

UK warned 'blunt bans' on students will affect its reputation

Jamie Arrowsmith, director of Universities UK International, says the way forward is not to “reverse” course.

“Our universities know that recruitment must be sustainable but a repeating pattern of boom and bust in international recruitment would be a big mistake,” he said.

“We need stable and well managed policy which keeps the UK attractive while ensuring that we continue to demonstrate exceptionally high levels of compliance with all visa and immigration requirements.

“The ability to bring dependents is already restricted to postgraduate courses, and students must demonstrate that they have the financial resources to support themselves and their families. We urge government to work with the sector to address and mitigate any concerns at local or national level in a balanced, constructive manner — rather than considering blunt bans that have the potential to adversely affect the UK’s reputation, our economy, and our relationships with key partners such as India and Nigeria.

“We strongly urge the government not to reverse course.”

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The National in Davos

We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

Updated: April 21, 2023, 6:00 PM