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The Guardian
2 days ago
- Politics
- The Guardian
Ministers accused of being ‘asleep at the wheel' over UK's soft power around the world
Ministers have been accused of being 'asleep at the wheel' over threats to the UK's soft power around the world, as some of their own advisers warned a funding crisis is undermining key institutions promoting British influence. Members of the government's new soft power council, set up by ministers earlier this year, warned the BBC World Service, the British Council and universities – regarded as the bodies at the forefront of the UK's soft power efforts – all face major financial pressures. There are concerns that the institutions could suffer further in next week's spending review, despite ministers facing calls to 'step up' their soft power efforts. It comes with Donald Trump defunding soft power institutions backed by the US, just as Russia and China spend billions to increase their influence and bring countries into their orbit. Vivienne Stern, the chief executive of Universities UK, who sits on the council, warned that when compared with China's soft power efforts 'through investment and things like scholarships, media, music and cultural efforts, you just think, we're asleep at the wheel'. 'We've got this position which we have inherited, which we believe to be our divine right – it's not,' she said. 'You have to work to maintain it. I've benefited from having the British Council's support around the world as the university sector tries to extend its links. Yet we're knocking lumps out of it. We need to wake up.' Tristram Hunt, the director of the Victoria and Albert Museum and another council member, warned the British Council, which boosts Britain's cultural and educational relations overseas, was facing an 'existential crisis' exacerbated by a £200m Covid-era government loan. 'It is crippling its ability to promote UK soft power around the world,' he said. 'Similarly, cuts to the [BBC] World Service, at a time when Russia and China and other actors unfavourable to the west are increasing their interventions and energies, also seems self-defeating.' Gen Sir Nick Carter, the former chief of the defence staff, warned the US under Trump was 'vaporising its soft power' and creating 'greater opportunities for our autocratic rivals to take on the space that formerly we filled with ease'. He added: 'Those of us who still believe in this should be leaning in even harder.' Despite the concerns, there are fears that soft power institutions could suffer in next week's spending review, which sets out public spending until the end of the decade. Both the Foreign Office and the culture department are unprotected, meaning they could have their budgets raided to make savings. The Guardian has already revealed that the Foreign Office has asked the World Service to draw up plans for either flat or reduced public funding. Sources said the demands would prove 'disastrous', coming as Trump attempts to remove funding from US institutions tackling disinformation, such as the Voice of America and Radio Free Asia. The chief executive of the British Council, Scott McDonald, has warned it is at risk of disappearing in two years. The institution has faced a collapse in revenues and must repay its government loan. Whitehall sources said the loan was given on commercial terms and ministers had a 'duty to the taxpayer' to recoup it. Meanwhile, ministers are being warned that almost three in four English universities are expected to be in the red in 2025-26, hit by increased national insurance payments and significantly diminished tuition fee income. While fees will increase with inflation in September, it comes after a long freeze that has meant their value decreased in real terms. UK universities are seen as a driver of soft power. Recent research suggests they educated more national leaders than any other country in the world. However, Stern and Sir Peter Bazalgette, the chancellor of the University of the West of England and former ITV chair, warned the government's immigration plans would restrict overseas students. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Members of the government's soft power council welcomed the creation of the body, which is designed to promote better coordination of Britain's efforts. They also acknowledged the tough economic choices faced by the chancellor, Rachel Reeves. However, several called for ministers to prioritise soft power. Bazalgette, another council member, said the 'absolute gold-plated priority is the BBC World Service' in terms of maintaining soft power. He said it was 'the jewel in our crown', alongside the British Council and universities. 'I'm hoping that we don't diminish the World Service any further, and that we find ways … of actually funding it further. 'There's no point in pretending these [funding] tensions aren't there. We have to have some sympathy for the government. All we can do is make the very best argument.' Lord Neil Mendoza, the provost of Oriel College, Oxford and chair of Historic England, said Britain has an 'incredible opportunity' amid the US retreat from the world stage. 'Although we have a very difficult financial situation, which will impinge on budgets, there's now a soft power void,' he said. 'It's a good moment for people to make these arguments.' Dr Sara Pantuliano, the chief executive of the thinktank ODI Global, said: 'I'm hoping that we will continue to make soft power central to decisions related to spending as well, although we know the mantra is that we don't have enough money overall as a country, so there are difficult choices.' A government spokesperson said the UK's sport, arts, culture and education sectors were 'world-class' and it was 'totally committed to doing all we can to further their reach, as well as promoting the English language overseas'. 'While we wouldn't get ahead of the spending review, our track record on this is clear,' they said. 'Despite the tough fiscal situation, we continue to back the British Council, with over £160m in 2025-26 alone, and are providing the BBC World Service with a large uplift of over £32m, taking our total funding to £137m. 'The foreign secretary also launched the UK soft power council in January, alongside culture secretary Lisa Nandy, to further strengthen our support for British soft power. Future spending decisions will be informed by the spending review.'
Wales Online
13-05-2025
- Business
- Wales Online
Keir Starmer launches new immigration crackdown with tax on thousands
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info Thousands could face a controversial tax and tighter visa restrictions under a new immigration white paper launched by Sir Keir Starmer. The Prime Minister's proposals were unveiled as part of Labour's bold bid to curb rising migration figures. They include a plan to force overseas graduates to leave the UK within 18 months unless they land a skilled job - instead of the current two-year post-study period, The Express reports. READ MORE: State pension and DWP benefit payments to see key date change Universities also face a six per cent levy slapped on each foreign student's tuition fee, which would be the first tax of its kind on international learners. The Home Office published the white paper, which outlines a sweeping shake-up of the current system. According to early estimates from Universities UK, the financial impact of the levy could cost universities around £600 million. The plan could "jeopardise" the financial future of Britain's higher education system, senior university figures have warned. It's thought courses like medicine and dentistry, which are already costly to run, could be hit the worst as they are often heavily subsidised by income from international students, meaning any drop in funding could pose serious risks. However, the government has insisted that proceeds from the levy would be reinvested to boost opportunities for British students. According to early projections, the plan could lead to 7,000 fewer student visa applications each year and 12,000 fewer graduate visa applications annually. Concerns have also been raised over quality, with officials noting that while student visa numbers jumped 49 per cent between 2021 and 2023, visas for top 100-ranked UK universities actually dropped by seven per cent in the same period. International students brought in £10 billion to the UK economy through tuition fees alone in 2023-24. Fees for non-EU students can range from £20,000 to more than £41,000 per year, while EU students pay between £9,600 and £14,000, depending on course type. Vivienne Stern, chief executive of Universities UK, warned that, for instance, a course like veterinary medicine costs around £20,000 per student, with nearly half funded by international student fees. She said: "We'd like the government to explain to us how it will make it easier for us to provide opportunities for UK students to do those high-cost subjects if they're taking some of that cost."
Yahoo
12-05-2025
- Business
- Yahoo
Universities face foreign student tax as Starmer cracks down on migration
Universities face a new tax on foreign students as part of Sir Keir Starmer's efforts to reduce net migration. In its white paper published on Monday, the Government announced it was considering a 6 per cent 'levy' on the £12 billion-a-year fee income that universities generate from overseas students. It said the money would be reinvested in the 'higher education and skills system' as part of proposals to boost training of domestic workers to reduce reliance on foreign staff. The white paper also cut the time that foreign graduates can remain in the UK after finishing their studies from two years to 18 months. They do not have to work during that period, but will only be allowed to stay on afterwards if they are in graduate-level work. University rules on recruiting foreign students are to be tightened, requiring fewer drop-outs and no-shows. Universities that fail to meet these tougher targets will face restrictions on the numbers they can recruit and could be barred from sponsoring foreign students. The moves sparked a backlash from universities, which have already had a 16 per cent drop in applications from overseas after a crackdown by the Tories on students bringing dependents with them. One union leader warned it could push universities into bankruptcy. Vivienne Stern, chief executive of Universities UK, said: 'Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging. 'We would urge the Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination.' Jo Grady, general secretary of the University and College Union, said: 'This anti-growth white paper is straight out of the Reform playbook. With higher education already under severe financial pressure, any further restrictions which deter international students from coming to the UK could lead to universities going under.' She added: 'The Home Office needs to stop imposing arbitrary restrictions that prevent international students and staff from coming to the UK, driving economic growth and enriching local communities. Its failure to do so will harm universities, the country and our global standing.' Nick Hillman, director of the Higher Education Policy Institute, said the 'deeply controversial' levy was 'a tax on a very successful UK export sector'. 'There will also be concerns that some of the money raised will be siphoned off by the Treasury – just as has happened with the apprenticeship levy,' he added. The number of foreign students – who pay full fees of as much as £60,000 a year and effectively cross-subsidise universities' losses on UK students – have more than doubled in the past five years. More than half moved on to another visa after completing their studies in the past three years, up from 20 per cent in 2020, meaning they have had a bigger impact on net migration. The white paper said there was, however, evidence that the system was being abused, with 16,000 making asylum claims, accounting for about half of all such applications from people who had arrived in the UK on a visa. 'The evidence suggests that at present, in some cases, the integrity of the UK's student visa system is being undermined, both by individuals from overseas seeking to exploit it and by education providers in this country failing to protect it,' said the white paper. It raised particular concerns over the number of foreign students coming to the UK for masters' courses, which increased by 150 per cent to 315,000 between 2020 and 2022, and over the types of institutions with the biggest rises. Visas for universities in the bottom-ranked 500 universities rose by 49 per cent in the two years to 2023, compared with a fall of 7 per cent in the top 100. To prevent the misuse of student visas, universities will now be required to ensure at least 90 per cent of foreign students complete their courses and at least 95 per cent turn up for them. A new red-amber-green warning system will tell the public how universities are performing in achieving compliance. Universities 'close to failing on their metrics' will have to draw up an action plan and face limits on the number of new foreign students they can recruit. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Powys County Times
12-05-2025
- Business
- Powys County Times
Government plans could worsen financial challenges at universities, experts warn
The Government's plans for immigration could deter international students from coming to the UK and exacerbate the financial challenges faced by British universities, sector leaders have warned. Under the White Paper proposals, graduate visas will be reduced to 18 months, and a new levy on income that universities generate from international students could be introduced. It also proposes strengthening the requirements that sponsoring institutions must meet in order to recruit international students. The White Paper said there have been problems involving 'misuse and exploitation of student visas', and 'too many graduates' who stay in the UK after their studies are not moving into graduate level jobs. University leaders have been warning of significant financial concerns caused by a drop in the number of international students – who can be charged higher tuition fees – following restrictions introduced by the former Conservative government, as well as frozen tuition fees paid by domestic students. Last week, an analysis by the Office for Students (OfS), the higher education regulator, projected that more than two in five (43%) universities and colleges in England were expected to be in deficit this year. Vivienne Stern, chief executive of Universities UK (UUK), said: 'Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging. 'We would urge Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination.' The White Paper noted that overseas students at UK universities generated around £20.65 billion in exports through living expenditure and tuition fees in 2021, and it said 'it is right that these benefits are shared'. The Government will explore introducing a levy on higher education provider income from international students to be reinvested into the higher education and skills system, it added. Under the proposals, the graduate visa route, which allows overseas students to live and work in the UK for up to two years after their studies, will remain in place but it will be reduced to 18 months. Jo Grady, general secretary of the University and College Union (UCU), said: 'This anti-growth white paper is straight out of the Reform playbook. 'With higher education already under severe financial pressure, any further restrictions which deter international students from coming to the UK could lead to universities going under.' She added: 'The Home Office needs to stop imposing arbitrary restrictions that prevent international students and staff from coming to the UK, driving economic growth and enriching local communities. 'Its failure to do so will harm universities, the country and our global standing.' Vanessa Wilson, chief executive of University Alliance, said: 'The proposals to introduce a levy on international student fee income are underbaked. 'It is not clear how this levy would be used, or how it would be protected for skills, and there are serious risks inherent in deliberately cutting into the main source of income for universities – some of the UK's largest employers – when there are very few other levers they can pull to remain financially sustainable.' Current proposals are understood to be looking at a 6% levy on universities' income on international students. Nick Hillman, director of the Higher Education Policy Institute (Hepi) think tank, called the proposed levy on international students 'deeply controversial'. He said: 'A levy will be seen by many as a tax on a very successful UK export sector. 'There will also be concerns that some of the money raised will be siphoned off by the Treasury – just as has happened with the Apprenticeship Levy.' Mr Hillman added: 'Some of the other ideas on students and graduates included in the white paper are also problematic. 'Reducing the Graduate Route visa from two years to 18 months is, admittedly, not as bad as abolishing it. 'But employers who recruit international students using the Graduate Route wanted to see an increase to three or four years, rather than a reduction, as new employees take months to become productive members of the workforce.' Rosalind Gill, head of policy at the National Centre for Universities and Business (NCUB), said: 'To drive long-term economic growth, the UK must foster a robust, diverse, and globally connected university sector, alongside creating an environment for innovative companies to flourish. 'The Immigration Bill poses major risks to this vision. 'Its further restrictions on Graduate Visas, and a new international student levy, will jeopardise the sustainability and global connectivity of UK universities.' Rain Newton-Smith, chief executive of the Confederation of British Industry (CBI), said: 'Policy changes that risk making the UK a less attractive place to study or increase costs confronting universities will have knock-on impacts for the competitive strength of UK higher education as a growth export, and young people's ability to access degree-level education at home. 'These trade-offs need to be considered if the Government is serious about developing domestic talent and driving growth.'
Telegraph
12-05-2025
- Business
- Telegraph
Universities face foreign student tax as Starmer cracks down on migration
Universities face a new tax on foreign students as part of Sir Keir Starmer's efforts to reduce net migration. In its long-awaited white paper, the Government announced it was considering a 6 per cent 'levy' on the £12 billion-a-year fee income that universities generate from overseas students. It said the money would be reinvested in the 'higher education and skills system' as part of the white paper's proposals to boost training of domestic workers to reduce UK industry's reliance on foreign staff. The white paper also cut the time that foreign graduates can remain in the UK after finishing their studies from two years to 18 months. They do not have to work during that period, but will only be allowed to stay on afterwards if they are in graduate-level work. University rules on recruiting foreign students are to be tightened, requiring fewer drop-outs and no-shows. Universities that fail to meet these tougher targets will face restrictions on the numbers they can recruit and could be barred from sponsoring foreign students. The moves sparked a backlash from universities, which have already had a 16 per cent drop in applications from overseas after a crackdown by the Tories on students bringing dependents with them. One union leader warned it could push universities into bankruptcy. Vivienne Stern, chief executive of Universities UK, said: 'Following years of frozen fees, inadequate research funding and a rapid downturn in international students, the current operating environment is very challenging. 'We would urge the Government to think carefully about the impact that a levy on international student fees will have on universities and the attractiveness of the UK as a study destination.' Jo Grady, general secretary of the University and College Union, said: 'This anti-growth white paper is straight out of the Reform playbook. With higher education already under severe financial pressure, any further restrictions which deter international students from coming to the UK could lead to universities going under.' She added: 'The Home Office needs to stop imposing arbitrary restrictions that prevent international students and staff from coming to the UK, driving economic growth and enriching local communities. Its failure to do so will harm universities, the country and our global standing.' Nick Hillman, director of the Higher Education Policy Institute, said the 'deeply controversial' levy was 'a tax on a very successful UK export sector'. 'There will also be concerns that some of the money raised will be siphoned off by the Treasury – just as has happened with the apprenticeship levy,' he added. The number of foreign students – who pay full fees of as much as £60,000 a year and effectively cross-subsidise universities losses on UK students – have more than doubled in the past five years. More than half moved on to another visa after completing their studies in the past three years, up from 20 per cent in 2020, meaning they have had a bigger impact on net migration. The white paper said there was, however, evidence that the system was being abused with 16,000 making asylum claims, accounting for about half of all such applications from people who had arrived in the UK on a visa. 'The evidence suggests that at present, in some cases, the integrity of the UK's student visa system is being undermined, both by individuals from overseas seeking to exploit it and by education providers in this country failing to protect it,' said the white paper. It raised particular concerns over the numbers of foreign students coming to the UK for masters' courses, which increased by 150 per cent to 315,000 between 2020 and 2022, and over the types of institutions with the biggest rises. Visas for universities in the bottom-ranked 500 universities rose by 49 per cent in the two years to 2023, compared with a fall of 7 per cent in the top 100. To prevent the misuse of student visas, universities will now be required to ensure at least 90 per cent of foreign students complete their courses and at least 95 per cent turn up for them. A new red-amber-green warning system will tell the public how universities are performing in achieving compliance. Universities 'close to failing on their metrics' will have to draw up an action plan and face limits on the number of new foreign students they can recruit.
