Reeves is urged to scrap international student levy

Business leaders have called on Rachel Reeves to scrap a proposed levy on university fees for international students, warning it could have major consequences for growth and global competitiveness.

- CAITLIN DOHERTY POLITICAL CORRESPONDENT

In their open letter shared with The Independent, business groups slammed what they call “a university tax” and warned that the planned 6 per cent rise on fees will have “unintended consequences” for the UK.

The note piles further pressure on the chancellor ahead of the Budget and comes after ministers brought forward a raft of measures earlier this year designed to tighten up rules around student visas.

The letter, signed by 15 groups including UK Music, Business LDN and Tech UK, claims that international students contribute tens of billions to the economy every year, “supporting local businesses and fuelling regional regeneration”.

“A reduction in international student numbers could also indirectly affect domestic student opportunities as income from international fees helps subsidise the cost of home students,” the letter said.