Question to the Department for Education:

To ask the Secretary of State for Education, whether she has made an assessment of the potential impact of the proposed levy on higher education provider income from international students on Scottish universities.

This government welcomes international students who enrich our university campuses, forge lifelong friendships with our domestic students and become global ambassadors for the UK. Our world-class higher education (HE) sector can offer a fulfilling and enjoyable experience to international students from around the world.

The Immigration White Paper sets out a series of measures that will achieve a reduction in net migration, while maintaining the UK’s globally competitive offer to international students and making a significant contribution to growth by boosting our skills base. This includes the commitment to explore the introduction of a levy on HE provider income from international students, with proceeds to be reinvested in the domestic HE and skills system. We will set out more details around this in the Autumn Budget. Analysis of the potential impacts is based on the levy applying to English HE providers only. We will fully consult all the devolved governments on the implementation of the international student levy.

In March, Professor Edward Peck was appointed as substantive Chair of the Office for Students. Professor Peck will continue the excellent work of interim Chair, Sir David Behan, focusing on the sector’s financial sustainability and increasing opportunities in HE.

Moreover, in November, my right hon. Friend, the Secretary of State for Education announced the difficult decision to increase tuition fee limits in line with forecast inflation. The maximum fee for a standard full-time undergraduate course in the 2025/26 academic year will increase by 3.1%, from £9,250 to £9,535. In return for the increased investment we are asking students to make, we expect the sector to deliver the very best outcomes, both for those students and for the country.

Alongside this, we expect all universities to have a sustainable business model. Our forthcoming plans for reform of the HE sector will set out how we will support universities in this regard.