An IMGW Report
Prominent business leaders have issued a stark warning to Prime Minister Rishi Sunak, highlighting that recent migration policies are jeopardising the UK university sector, a critical factor for attracting investment.
In a strongly worded letter, executives from major companies, including Anglo American, Rio Tinto, and Siemens, expressed their “deep concern” over the financial strains and declining international student numbers directly linked to current government policies.
“Recent changes to education visas, particularly restrictions on postgraduates bringing family members, have led to a sharp decline in international student deposits, according to industry data”
The leaders emphasised that these policies could significantly diminish the benefits international students bring to the UK, including enhancing the skills base, workforce development, and international standing. Moreover, they warned that reduced international student enrollment could lead to a shortfall in research funding and hinder industry collaborations.
The business leaders’ intervention coincides with calls from the independent Migration Advisory Committee, which advises the government on migration matters, to retain the graduate visa program. This scheme permits foreign graduates to live and work in the UK for up to two years post-graduation, a system under review for potential misuse and facing pressure from conservative political factions.
The committee cautioned that cutting the number of international students could impose severe financial strains on universities, potentially leading to closures. Despite this, committee chair Brian Bell noted limited evidence that the graduate visa route substantially boosts domestic workforce skills.
Stuart Chambers, chair of Anglo American, which is currently involved in a significant £34 billion takeover bid, underscored the importance of investing in the UK for its talent, skills, and innovation. He urged the government to support the university sector to maintain global competitiveness and economic resilience, noting early warning signs of a sector at risk.
The letter, coordinated by the National Centre for Universities and Business, also featured signatures from Carl Ennis, CEO of Siemens UK and Ireland, Christine Hodgson, chair of Severn Trent, and representatives from Rio Tinto, Thales, EDF, and Neptune.
Furthermore, major firms such as KPMG, Deloitte, and HSBC have rescinded job offers to international recruits following the government’s decision to increase the skilled visa worker salary threshold from £26,200 to £38,700.
Recent changes to education visas, particularly restrictions on postgraduates bringing family members, have led to a sharp decline in international student deposits, according to industry data.
A spokesperson for the Prime Minister noted that the government has allocated substantial financial support to higher education and insisted that the sector should prioritize education over immigration. HMRC data revealed that in 2023, 69% of those using the graduate visa route had been studying in the UK for a year or less. The government is expected to respond to the Migration Advisory Committee’s review soon, with a commitment to maintaining high-quality graduates from the sector.