Tag: reliant

  • Which UK regional economies are most reliant on international students?

    Which UK regional economies are most reliant on international students?

    Join HEPI for a webinar on Thursday 11 December 2025 from 10am to 11am to discuss how universities can strengthen the student voice in governance to mark the launch of our upcoming report, Rethinking the Student Voice. Sign up now to hear our speakers explore the key questions.

    This blog was kindly authored by Emma Prodromou, Global Business Expansion and Immigration Manager, the Mauve Group.

    The quiet engine driving local prosperity

    Across the United Kingdom, international students have quietly become a vital source of regional economic strength. Those who come to the UK to further their education go on to bolster local economies and public services.

    In fact, recent research reveals that UK regions now depend on international talent to a degree few policymakers fully appreciate.

    The growing economic footprint of international students

    The economic impact of international students in the UK surged from £31.3 billion in 2018/19 to £41.9 billion by 2021/22. On average, every parliamentary constituency in Britain benefits by £58 million.

    Some regions rely more heavily than others on this influx of global talent. In Sheffield, for example, international students contribute around £770 million annually to the city’s economy, while across Yorkshire and the Humber, that total exceeds £2.9 billion. In cities such as Leicester, Exeter, Nottingham, and Dundee, universities are among the leading exporters, accounting for up to 15% of total local exports.

    These figures show how universities serve as economic anchors, especially outside the Southeast. International students contribute through tuition, housing, local spending, and by supporting jobs in retail and hospitality.

    Policy pressures and looming challenges

    However, this success story faces rising challenges. Recent government policy changes, including visa restrictions and caps on dependents, threaten to undermine the financial stability of regional institutions. Such measures may disproportionately impact towns where universities are at the heart of the economic life.

    At the same time, course closures are accelerating — nearly a fifth in agriculture and food studies, and around 10–12% in sciences and social sciences. These cuts expose a structural issue: as universities adapt to funding pressures and shifting demand, they risk losing expertise vital to regional and national priorities.

    Competing for global talent

    Faced with financial uncertainty and increasing global competition, UK universities are adopting new strategies to attract international students. Many of these initiatives draw inspiration from the government’s broader Industrial Strategy.

    At the University of Southampton, a £4.35 million investment was secured through the Global Talent Fund, part of a £54 million initiative by the Department for Science, Innovation and Technology (DSIT). The aim is to recruit top global researchers to strengthen the UK’s research base and reinforce its global reputation for excellence.

    Building regional innovation hubs

    Other regions are leveraging academic expertise to foster innovation ecosystems. Swansea University has played a central role in developing a semiconductor cluster in South Wales. This reflects Wales’s growing profile on the global stage. In 2022, just 21% of prospective international students noted familiarity with Wales as a study destination. By 2025, that figure had more than doubled to 44%, especially in key markets such as India and the United States.

    To help close skills gaps and boost innovation, Wales has opted to pass on the UK’s new 6% levy to international students. Welsh institutions are well-positioned to attract global talent, though graduates must still navigate the post-graduate visa landscape and local compliance rules when it comes to employment.

    The rise of ‘dynamic pricing’ and scholarships

    In an increasingly competitive global education market, British universities are also adopting more flexible pricing models to attract international students.

    The University of Birmingham, Birmingham City University, and Sheffield Hallam University offer regional discounts targeted at applicants from India and Southeast Asia. Keele University automatically awards £5,000 scholarships to undergraduates who exceed entry requirements, while the University of the West of England (UWE) provides a £3,000 annual Global Success Scholarship for students who complete a set number of ambassador duties throughout the academic year.

    These initiatives reflect a more entrepreneurial approach to recruitment, focused on affordability and global reach.

    Education as soft power

    Beyond economics, international education remains one of the UK’s most effective instruments of soft power. By attracting students from across the world, British universities build lasting global networks of alumni who go on to hold influential positions in business, government, and academia.

    Amid mounting financial pressures, many universities are expanding overseas through international branch campuses, exporting British education while diversifying income. In India, institutions like York, Aberdeen, and Bristol plan local campuses, aligning with the UK–India Free Trade Agreement expected to add $34 billion in annual trade.

    A delicate balance ahead

    As the UK reshapes its immigration and higher education policies, it must balance fiscal restraint with global engagement. Excessive restrictions could damage universities and the regional economies that depend on international students.

    International education is crucial to economic resilience, both locally and nationally, as well as to regional regeneration and global influence. As the data show, from Sheffield to Swansea, Leicester to Dundee, the UK’s prosperity is deeply intertwined with its ability to attract and retain top global talent.

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  • A university system reliant on international students has an obligation to understand them

    A university system reliant on international students has an obligation to understand them

    It is becoming difficult to ignore potential tension between the internationalisation of higher education and plans to cut net migration. Recent UK government policies, such as the reduction of the graduate visa from two years to 18 months, could have severe consequences for universities in Scotland.

    Scottish government funding per home student has not kept pace with inflation. To compensate for the subsequent gap in resources, universities have become more dependent on international enrolments.

    In addition, Scotland faces specific demographic challenges. By 2075, the number of working aged Scots is predicted to fall by 14.7 per cent and, without migration, the population would be in decline. Encouraging young people to remain after graduation could help to balance the ageing population. However, although the Scottish government favours a more generous post-study visa route, this is not supported by Westminster.

    Ability to adjust

    Rhetoric around internationalisation tends to emphasise positive factors such as increased diversity and cross-cultural exchange. Yet, as an English for Academic Purposes (EAP) practitioner, I have long been concerned that learners from diverse linguistic backgrounds are often viewed through a lens of deficiency. There is also a risk that their own needs will be overlooked in the midst of political and economic debate.

    To better understand how students’ sense of identity is affected by moving into new educational and social settings, I carried out interview-based research at a Scottish university. Like other “prestigious” institutions, it attracts a large number of applicants from abroad. In particular, some taught master’s degrees (such as those in the field of language education) are dominated by Chinese nationals. Indeed, when recruiting postgraduate interviewees, I was not surprised when only two (out of 11) came from other countries (Thailand and Japan).

    My analysis of data revealed typical reasons for choosing the university: ranking, reputation and the shorter duration of master’s courses. Participants described being met with unfamiliar expectations on arrival, especially as regards writing essays and contributing to discussion. For some, this challenged their previous identities as competent individuals with advanced English skills. These issues were exacerbated in “all-white” classes, where being in the minority heightened linguistic anxiety and the fear of being judged. They had varied experiences of group work: several reported – not necessarily intentional but nonetheless problematic – segregation of students by nationality, undermining the notion that a multi-national population results in close mixing on campus.

    In a survey administered to a wider cohort of respondents on a pre-sessional EAP programme, the majority agreed or strongly agreed when asked if they would befriend British people while at university.

    However, making such connections is far from straightforward. International students are sometimes criticised for socialising in monocultural groups and failing to fully “fit in”. However, the fatigue of living one’s life in another language and simultaneously coping with academic demands means that getting to know locals is not a priority. At the same time, research participants expressed regret at the lack of opportunity to interact with other nationalities, with one remarking, “if everyone around me is Chinese, why did I choose to study abroad?” Some encountered prejudice or marginalisation, reporting that they felt ignored by “fluent” speakers of English. Understandably, this had a detrimental effect on their ability to adjust.

    Different ways to belong

    To gain different perspectives, I also spoke with teachers who work with international students. EAP tutors believed that their classes offer a safe space for them to gain confidence and become used to a new way of working. However, they wondered whether there would be a similarly supportive atmosphere in mainstream university settings. Subject lecturers did not invoke phrases such as “dumbing down”, but several had altered their teaching methods to better suit learners from non-Anglophone backgrounds.

    In addition, they questioned whether internationalisation always equated to diversity. One commented on the advantages of having a “multicultural quality”, but added that it “has to be a mix” – something which is not possible if, like on her course, there are no Scottish students. Another mentioned that the propensity to “stick with your own people” is not a uniquely Chinese phenomenon, but common behaviour regardless of background.

    A few academics had noticed that most Chinese students take an attitude of, “I’m doing my (one-year) master’s and maybe then I have to move back to China.” Chinese students are less likely than some other nationalities to apply for a graduate visa, suggesting that their investment in a degree abroad is of a transactional nature.

    The majority of survey respondents indicated that they would adapt to a new way of life while living abroad. However, during my last conversation with focal interviewees, I uncovered different levels of belonging, ranging from, “I feel like I’m from Scotland”, to “my heart was always in China”, to “I don’t have any home.” Participants generally viewed their stay as temporary: in fact, all but the Japanese student (who accepted a job in the US) returned to their home country after graduation. Although they described their time in Scotland in mostly positive terms, some were disappointed that it had not provided a truly intercultural experience.

    Meltdown

    It is clear that universities in Scotland have become overly reliant on international tuition for their financial sustainability. At the same time, there is conflict between the devolved administration’s depiction of Scotland as outward looking and welcoming, and the reality of stricter migration policies over which it has no control.

    Discourses which position international students as outsiders who add to high immigration numbers could deter some from coming. If they are seen only as economic assets, their own cultural capital and agency might be neglected. It is also important to problematise the notion of “integration”: even my small study suggests that there are different ways of belonging. No group of learners is homogeneous: even if they come from the same country, individual experiences will differ.

    To navigate the current financial crisis, Scottish universities need to do everything possible to maintain their appeal. With elections being held next year, higher education policy will continue to be a key area of discussion. At present, there are no plans to introduce fees for home students, making revenue from international tuition all the more essential.

    However, at a time of global uncertainty, taking overseas students for granted feels enormously unwise. Instead, it is crucial to ask how they can be made to feel like valued members of the academic community. The answer to this question might be different for everyone, but engaging with students themselves, rather than relying on unhelpful assumptions, would be a start.

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