Framing a tax on students as a migration control is a misguided move that punishes one of Britain’s greatest assets, writes Virenda Sharma MP
It was encouraging to see a British Prime Minister once again fly to India with a delegation of business leaders – seeking to strengthen trade and investment between our two nations. Over the years, such visits have almost become a rite of passage for British leaders eager to deepen ties with one of the world’s fastest-growing economies.
This time, though, Sir Keir Starmer’s visit carries more substance. The recent conclusion of a formal trade deal with Delhi provides a solid foundation for optimism. With global trade patterns shifting and some major partners becoming less predictable – as we’ve seen with the US’s recent tariffs – India’s openness to partnership offers a real opportunity for the UK to build something lasting and mutually beneficial.
That’s why it’s so disappointing that this positive momentum risks being overshadowed by a new policy that sends quite the opposite message – particularly to young Indians aspiring to study in Britain.
A tax on universities is a tax on talent
The government’s proposal for a six per cent levy on tuition fees paid by international students, set out in the new Migration White Paper: Restoring Control over the Immigration System, is troubling on several fronts. It’s framed as part of efforts to reduce immigration, yet international students are not migrants in the traditional sense – they come to learn, to build bridges and often return home as lifelong ambassadors for the UK.
Worse still, this measure risks offending some of our closest partners – including India – where many families already make enormous sacrifices to send their children to study abroad. Suggesting that their sons and daughters are somehow part of an immigration “problem” is not only unfair, it’s deeply counterproductive.
From a practical standpoint, the numbers simply don’t add up. The Higher Education Policy Institute (HEPI) estimates that English universities would face a £621m cost from this levy, but analysis by Public First suggests the actual revenue raised would be less than half that (around £250m) because students will simply choose other destinations. If universities could charge higher fees without consequence, they would already be doing so. The reality is that international education is a competitive market, and Britain’s global reputation depends on offering excellence and value, not higher taxes.
Let’s call this proposal what it really is: a tax on universities – and, by extension, a tax on Britain’s international reputation.
Canada and Australia will welcome our students
The real cost could be far greater than the financial figures suggest. Universities, already under immense strain, would be forced to make an impossible choice: reduce teaching quality to absorb the costs, or raise fees and risk deterring applicants. Either option would weaken one of the UK’s greatest strengths – our world-leading higher education sector.
International students already pay significantly more than domestic ones, and their contributions support research, innovation and even the affordability of courses for UK students. If this levy pushes them away, the damage will be felt across campuses, as well as the economy.
We’ve seen this before: when visa rules were tightened, student numbers fell sharply – and competitors like Canada and Australia stepped in to welcome the talent we turned away. The same could easily happen again. While the US currently offers less certainty for foreign students, this policy risks handing our competitors another advantage.
It’s not too late to reconsider. The Chancellor could still drop the proposal ahead of the Budget, and universities could work constructively with the government to explore fairer ways to support maintenance and inclusion – goals we can all share.
In his conference speech, the Prime Minister spoke of drawing a line between decency and populism – between addressing public concern and stoking division. Framing a tax on universities as a migration control measure crosses that line. It’s neither fair politics nor smart economics.
If we truly believe in Britain as a global leader in education and innovation, this is the moment to show it – with policies that welcome talent, not drive it away.
Virenda Sharma is the MP for Ealing Southall