The government must end the “damaging speculation” over the graduate visa route to avoid risking “long-term damage to a key export sector”, business lobby groups have warned.
The UK’s graduate visa route is “not undermining” the higher education system and should remain, the government’s independent migration advisers have said.
The Migration Advisory Committee (MAC) did not find evidence of widespread abuse of the route, which allows foreign students to stay in the UK for two to three years after graduating.
The government-commissioned review into the post-study visa said it should be retained in its current form, adding that it helps attract overseas students who pay higher tuition fees.
Some courses, such as science and engineering, would be “less financially viable” if the number of international students fell, which could impact availability to UK students, it found.
The review came as the government searches for measures to cut migration, despite university leaders welcoming the report and calling on ministers to end “toxic” uncertainty over the graduate visa.
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Business organisations have also weighed in and called for immediate clarity, dubbing higher education “one of our biggest export successes”.
John Foster, chief policy officer at the Confederation of British Industry (CBI), said: “Losing competitiveness would put support for undergraduate teaching and innovation at risk.
“It’s time to put [the visas] future beyond doubt and end this period of damaging speculation.”
Karim Fatehi, chief executive of the London Chamber of Commerce and Industry (LCCI), said: “In London alone, international students bring £9.59bn of net economic gain each year and we are greatly encouraged by the recommendation that the route should remain as it is.”
He added: “At a time when skills gaps are crippling the workforce, the government must do everything in its power to alleviate this pressure on businesses.
“This includes enriching the UK’s academic environment so there are workers to fill these shortages post-graduation.”
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Mark Hilton, policy delivery director at BusinessLDN, stressed: “International applications for UK university places have plummeted since the announcement of this review, damaging our reputation in a highly competitive global marketplace.
“The government must move swiftly to reverse that impact – failure to act on the findings of this report risks long-term damage to a key export sector.
“It should now work with education providers to bolster our status as a world leader in this industry, including by protecting the Graduate Visa as a driver of economic growth.”
The Prime Minister’s spokesman said Rishi Sunak had previously said “British students should be the priority… and student visas must be used for education, not immigration”.
He added: “We are focused on driving down migration whilst ensuring the UK attracts the best and the brightest, and we will study the MAC’s findings and outline our approach on the graduate route in due course.”