International students enrich cities like Coventry – but that could change

Coventry Cathedral next to a museum and university building. Image: Herry Lawford/Creative Commons.

More than 440,000 students from outside the UK come to study at British universities every year, and they have a transformative impact on both the places where they study, and the places they live. 

As new research published by the Higher Education Policy Institute and Kaplan shows, the gross benefits of the UK hosting international students stands at £22.6bn – dwarfing the costs of hosting them by 10:1. This works out as £310 per every UK resident.

Universities UK recently calculated that international students contribute £25.6bn to the UK economy per year – with over £5bn of this being spent on off-campus goods and services. Their spending is such that they support over 200,000 jobs in the UK, in many of the cities where this work is absolutely critical to the local economy.

It is often thought that London is the main beneficiary of international students, but the benefits of international students are being felt across the UK.

Coventry is a particularly good example of this.


A city with a proud history, the number of international students there has been steadily increasing in recent years, with the number of international students from outside of the EU increasing by over 2,000 since 2010, and 7,900 non-EU international students enrolling in courses in 2016.

As the editor of the Coventry Telegraph Keith Perry put it to readers: “Money follows money and the student pound can entice the investors and developers, which brings more of us back to our city centre rather than heading out to Solihull.

“Before you know it, we might even be able to persuade John Lewis, the store you tell us you want, to pitch up in Coventry.”

The array of businesses in Coventry which benefit from international students is something which is replicated throughout the country. One local taxi firm described the increasing number of international students in the city as “an absolute godsend”, while a restaurant owner described international students as “absolutely crucial” to the success of their business. 

Across university towns, the impact that international students have on the local economy is widely felt. Be it taxi companies, restaurants, or bars and nightclubs, international students leave a lasting impression on the cities in which they study.

Yet, for all the good that international students bring to UK cities, the number choosing to study at British universities is stalling. At the same time, our global competitors, Canada and Australia, are surging ahead.

The inclusion of students in the government’s net migration target, the difficulties in gaining a student visa as well as the barriers in being able to work after graduating, all account for why this lucrative market of international students is looking elsewhere. The decisions taken by this government in recent years have been interpreted abroad to mean: international students are not welcome in the UK.

While the UK is pulling up the drawbridge, its competitors have been rolling out the red carpet to this market to such an extent that the global higher education market has grown by 34 per cent since 2010. This is a higher education party to which the UK has been invited, but is declining to attend.

It is vital that cities across the UK trumpet the benefits that international students bring to them. Too often, people think of the benefits of international students as being merely in the classroom, whereas the reality is that their benefits are felt throughout a city.

It is true that the UK needs a tough visa regime and strong immigration policy, but polling has consistently shown that the UK public clearly differentiate between international students and long-term migrants. Three quarters of the public do not see students as migrants.

Cities all over the UK – and Coventry is just one example – are crying out for more international students and it is vital that government acts to create a more encouraging visa regime for international students, which promotes UK higher education for what it is: one of our best and most lucrative exports to the world.

Sarah Williamson is a spokeswoman for Destination for Education, a campaign to recruit international students to the UK.

 
 
 
 

As EU funding is lost, “levelling up” needs investment, not just rhetoric

Oh, well. Image: Getty.

Regional inequality was the foundation of Boris Johnson’s election victory and has since become one of the main focuses of his government. However, the enthusiasm of ministers championing the “levelling up” agenda rings hollow when compared with their inertia in preparing a UK replacement for European structural funding. 

Local government, already bearing the brunt of severe funding cuts, relies on European funding to support projects that boost growth in struggling local economies and help people build skills and find secure work. Now that the UK has withdrawn its EU membership, councils’ concerns over how EU funds will be replaced from 2021 are becoming more pronounced.

Johnson’s government has committed to create a domestic structural funding programme, the UK Shared Prosperity Fund (UKSPF), to replace the European Structural and Investment Fund (ESIF). However, other than pledging that UKSPF will “reduce inequalities between communities”, it has offered few details on how funds will be allocated. A public consultation on UKSPF promised by May’s government in 2018 has yet to materialise.

The government’s continued silence on UKSPF is generating a growing sense of unease among councils, especially after the failure of successive governments to prioritise investment in regional development. Indeed, inequalities within the UK have been allowed to grow so much that the UK’s poorest region by EU standards (West Wales & the Valleys) has a GDP of 68 per cent of the average EU GDP, while the UK’s richest region (Inner London) has a GDP of 614 per cent of the EU average – an intra-national disparity that is unique in Europe. If the UK had remained a member of the EU, its number of ‘less developed’ regions in need of most structural funding support would have increased from two to five in 2021-27: South Yorkshire, Tees Valley & Durham and Lincolnshire joining Cornwall & Isles of Scilly and West Wales & the Valley. Ministers have not given guarantees that any region, whether ‘less developed’ or otherwise, will obtain the same amount of funding under UKSPF to which they would have been entitled under ESIF.


The government is reportedly contemplating changing the Treasury’s fiscal rules so public spending favours programmes that reduce regional inequalities as well as provide value for money, but this alone will not rebalance the economy. A shared prosperity fund like UKSPF has the potential to be the master key that unlocks inclusive growth throughout the country, particularly if it involves less bureaucracy than ESIF and aligns funding more effectively with the priorities of local people. 

In NLGN’s Community Commissioning report, we recommended that this funding should be devolved to communities directly to decide local priorities for the investment. By enabling community ownership of design and administration, the UK government would create an innovative domestic structural funding scheme that promotes inclusion in its process as well as its outcomes.

NLGN’s latest report, Cultivating Local Inclusive Growth: In Practice, highlights the range of policy levers and resources that councils can use to promote inclusive growth in their area. It demonstrates that, through collaboration with communities and cross-sector partners, councils are already doing sterling work to enhance economic and social inclusion. Their efforts could be further enhanced with a fund that learns lessons from ESIF’s successes and flaws: a UKSPF that is easier to access, designed and delivered by local communities, properly funded, and specifically targeted at promoting social and economic inclusion in regions that need it most. “Getting Brexit done” was meant to free up the government’s time to focus once more on pressing domestic priorities. “Getting inclusive growth done” should be at the top of any new to-do list.

Charlotte Morgan is senior researcher at the New Local Government Network.