In 2015 the Government announced plans (International Education: Global Growth and Prosperity) to expand revenue from international Higher Education (HE) in the UK and abroad to £30 billion by 2020. The Higher Education Commission (HEC), supported by the Association of Chartered Certified Accountants, JISC, Universities Partnership Programme and Pearson, set up an inquiry seeking to support the Government’s ambition by identifying how HE could be grown to deliver the 2020 target. The inquiry also looked at the soft power benefits from higher education, such as the role the sector plays in foreign policy, aid and development.
The HEC’s report was published on 13 September. The inquiry, like the Government’s target, covered two aspects of international HE. The first aspect was the value of higher education in the UK from overseas students coming here, paying tuition fees and making a wider contribution to the economy from their stay in the country. The second aspect looks at how UK based Higher Education Institutions (HEIs) establishing services outside the UK.
The inquiry found that HE is second only to financial services in contribution to UK GDP at £20bn a year. The UK was the second largest beneficiary of international students, but has now been overtaken by Australia. Through a variety of supply and demand factors the recruitment of students onshore has been held at more or less exactly the same level since 2012. Those factors include the policy environment and immigration regulation, where recent policy changes, Brexit and perceived government attitudes make the UK a less attractive destination for international students. A hostile environment for international students goes against the national interest, because it diminishes the soft power benefits of engaged and enthusiastic international alumni.