UK universities face ‘financial crisis’ amid collapse in international students
with the University of Exeter announcing on Thursday that it was immediately scrapping geography courses at its Penryn campus in Cornwall, including for school leavers who had applied this year.A spokesperson for Exeter said: “We recognise that this is disappointing for affected applicants and difficult for colleagues associated with these programmes.”
Libby Hackett, the chief executive of the Russell Group, said the group’s universities still attracted talented international students in an increasingly competitive global market, bringing cultural and economic benefits to their universities and to the UK more widely.
But Hackett warned: “A series of policy decisions by successive governments, including the unpopular international student levy, risks undermining this success story. This isn’t just worrying for universities – it’s not good news for the UK as a whole. Recent analysis shows that the decline in international students means the UK has lost out on a net economic benefit of nearly £3bn.
“The Burnham government recognises the critical role universities play in our national and local economies and our position on the world stage. We look forward to more consistent decision-making across government in support of economic growth, including measures that enable us to continue welcoming global talent.”
Vivienne Stern, the chief executive of the Universities UK group of vice-chancellors, said the student visa figures “should be a wake-up call” for policymakers.
Humanities among degrees being ‘extinguished’ by hard-up universities
“There are plenty of people in government who understand the pressure on the sector, they understand how important universities are for local economies and for domestic students, and they are watching this with concern,” Stern said.
“I hope those people are knocking on the door of the [Department for Education] and the Home Office, and saying that they can do one thing tomorrow that will help universities, and that is to quietly drop the idea of taxing international student fees.
“I understand the political pressure around immigration, and the UK university sector has to be a good, responsive partner with government in making sure the system works the way it should. But if the government was seeking to reduce overseas student numbers, I think they have overcorrected. What we need is stability and a bit of help to recover our competitive position internationally.”
Jacqui Smith, the skills minister whose portfolio includes higher education, told the BBC on Thursday that the government was concerned that university courses should be good value for money, and suggested future increases in tuition fees would be linked to teaching quality.
“For most people, going to university is a very good and important investment in their future earning potential and in their life,” Smith said.


