International students benefit local economies, and this extends to those living and working there

Universities once again find themselves in the crosshairs of a political argument around migration.

I suspect no one on these pages needs convincing of the benefits international students bring to the UK: the diversity and vibrancy they add to our campuses, the fees that help our finances add up so we can carry out research and teach home students, the wider economic impact they bring through their fees and their spending in the UK economy, and the long term soft power of goodwill and friendship that our international alumni generate.

And there is plenty of public opinion research – for example from Public First and UUK in 2023, from King’s College London in 2024, and from British Future in 2025 – that shows that the British public supports international student migration, thinks it brings economic benefits, and doesn’t see cutting numbers as a priority.

But we have to be clear that we are losing the political argument on the value of international students – as have our HE colleagues in Canada, Australia and the US in recent months.

A local industry

This is the case despite the hard facts we have about the positive impacts of international students, including the £42 billion aggregate (2021–22 numbers) annual economic benefit estimated by London Economics. But those facts may not be enough as the political climate changes; we need to be agile in responding to where the political debate is moving.

For example, we understand that the aggregate economic impact of international students is not disputed within the government. But they are not convinced that positive impacts are felt at the local level. So what do these big, aggregate numbers mean for citizens at the local level? To address that question, the University of York commissioned some rapid work from Public First – building on the London Economics modelling – to show the benefits of international students at constituency level, both as an export industry, and in their impact on domestic living standards.

The first part of this work was published a few weeks ago at the heart of the debate around the final stages of the immigration white paper. This showed that international higher education is one of our most important export industries. This was counterintuitive for many politicians – who generally think of exports as goods or services which we trade overseas. But in fact, every international student coming and living in the UK is an “export” – bringing in foreign currency and supporting our economy.

Politicians rightly champion our other UK exports – our cars, our pharmaceuticals, our creative industries. But across the country, higher education is just as, if not more important. We showed that in 26 parliamentary constituencies around the country, higher education is the single largest export industry – and it is in the top three in a total of 102 constituencies, spread around the country. To put it another way, in many towns and cities, higher education is the car plant, or the steel mill, or the pharmaceuticals factory that drives local economies.

We hear that this evidence of real local impact was significant within Whitehall, and contributed to seeing off some of the wider proposals for restricting student flows that could have been in the immigration white paper.

Pounds in pockets

The second half of this research, published today, takes on some of the critique we know has been advanced in government in recent months: that while students may bring economic value in some abstract, aggregate way at national level, there are costs that are felt locally in our towns and cities that reduce living standards.

Our analysis comprehensively debunks that. Instead, we show that international students are net contributors to the taxpayer, and that at the local level they raise wages and living standards for domestic residents. We calculate that every worker in the UK has higher wages to the value of almost £500 a year purely as a result of international students’ economic contribution. And in more than 100 constituencies, the benefit is much larger, equating to more than two and a half weeks’ wages for the average worker.

These local-level impacts are often well-recognised by MPs and councillors. They are not yet in national-level debate. So we will continue to make the case for the wider benefits of international students for our towns and cities as well as abstract national GDP figures.

In addition, we need to push back against the misguided assumptions in the white paper that the proposed new international students levy would have only a minor impact on recruitment, and show in detail why the reduction in numbers would be large, and carry with it an economic loss that would go way beyond universities’ gates and into their local communities. We are pleased to be working alongside colleagues in the sector to do just that.

In all this we need to recognise the politics of the moment. All governments are political. That is how they got there, and to be so isn’t wrong! We have a government focused at the moment on its electoral prospects, and many of its actions can be explained by a drive to keep its voting coalition together, especially with the insurgent threat of Reform, and especially on the highly politicised issue of migration.

Universities are well advised to steer clear of party politics. As a vice chancellor, I work without fear or favour to support the needs of staff and students, but also the city and communities around York. But my academic background is as a political scientist so I’m a keen observer of how universities, migration, and their intersection have electoral significance. So, looking at the 100 constituencies we identify in our research which benefit the most from international students either as an export, or in rising domestic wages, it is noteworthy that over 80 per cent of those constituencies are currently held by Labour MPs, often by very narrow margins.

In those and the many other constituencies where international students bring real, tangible economic benefits, it is important that local citizens and political representatives understand what is at stake when widely held public concerns about migration lead to the targeting a group – international students – who the public both think highly of, and who make a big contribution to local economies.