Universities UK response as the IFS calls the proposed levy on international student fees "a tax on a major UK export"

Responding to the publication today from the IFS of its assessment of the government's White Paper on post-16 skills, Universities UK has drawn attention to the IFS adding its voice to growing concerns about the negative impact of any international student levy. 

The IFS questions the economic rationale for the levy and says it would "constitute a tax on a major UK export". 

Universities UK has today published research which demonstrates the scale of the financial challenge universities are already facing, following a decade in which funding for teaching has failed to keep pace with inflation.  It highlights how the proposed new tax on international students would add £780m of additional costs to universities each year, when they are already receiving £6.4bn less for teaching than a decade ago .

Vivienne Stern MBE, Chief Executive of Universities UK, said:

"Expert voices from all quarters are questioning the economic rationale for the proposed international student levy. It would have severe consequences for the finances of universities and their activities in support of the government's missions - innovation and R&D, teaching domestic students and widening participation. The tax is being proposed at a time when the higher education sector is already facing strong financial headwinds with universities and grappling with real-terms reductions in the teaching unit of resource, as our analysis published today shows.

"Having a respected body like the IFS call this a "tax on a major UK export" must act as a wakeup call. We urge government to drop this proposal ahead of the Budget and take the necessary time to fully consider the implications of introducing such a levy. Government and sector must work together on finding alternative ways to fund enhanced maintenance support."