Scotland’s economy could suffer significant losses if the UK Government proceeds with plans to impose a levy on international student income, a new report has warned.
Policy consultancy Public First estimated that only London would be hit harder than Scotland, with the proposed levy costing the UK economy £2.2 billion in international tuition fee income over five years.
The report modelled potential losses by parliamentary constituency, showing that the 10 most affected areas would lose an average of £40 million in gross value added (GVA).
Labour leader Keir Starmer’s Holborn and St Pancras constituency faces the steepest hit at £72 million, followed by London and Westminster (£57m) and Coventry South (£44m).
Business and education leaders warned the policy could deter thousands of international students, who contribute significantly to local economies.
Public First predicts up to 16,100 fewer students in the first year alone, rising to 77,000 over five years.
Henri Murison of the Northern Powerhouse Partnership said the levy would hugely damage regional economies, while universities UK chief executive Vivienne Stern warned of a multi-billion-pound hit to universities already struggling with deficits.
The government said the levy would ensure fairer investment across the higher education system but maintained it is still under review
