Background
In May 2025, the UK Government published the Immigration White Paper, “Restoring Control over the Immigration System”. A policy proposed in this paper was a 6% levy on international student fees, to be “reinvested into the higher education and skills system.”
The Immigration White Paper Technical Annex projected the impact that this price rise would have on international student numbers. To estimate this, the Home Office used a London Economics estimate of price elasticity of demand of EU students from 2021. However, this assumes that non-EU students in 2025 have the same price sensitivity as EU students in 2021. To give a more accurate assessment of the impact the proposed levy could have, updated and extended data was required.
A consortium of Universities: Durham University, King’s College London, University College London, University of Leeds, University of Nottingham, University of Sheffield, and University of York, commissioned Public First to conduct new research into the potential impacts of the levy. Public First’s report looks at the elasticity of student demand, the implications for university finances and models implications for student numbers. It highlights the potential GVA loss from an international student levy and the economic benefits that international students bring to the UK (by parliamentary constituency).
On the 29 September 2025, the Government announced that it would fund new student maintenance grants through the levy. In response, Universities UK has said that: “A levy on international students will not help disadvantaged students, it will hinder them. As emerging evidence already shows, it would reduce the number of places available for domestic students and mean universities have even less of their scant resource to invest into expanding access and supporting students.”
UUK supports the reintroduction of targeted means-tested maintenance grants, but it believes that taxing international student fees is not the right way to fund this. The tax risks severe unintended consequences, including undermining universities’ world-leading R&D and Skills activities, reducing their contributions to local and regional economies, and curtailing the wider ambitions for the HE sector outlined in the Post-16 Education and Skills White Paper.
Yorkshire Universities Executive Director, Dr Peter O’Brien, has argued that the proposed international student levy would undermine efforts to increase investment, strengthen innovation, improve skills, and grow the overall economy in an article by the Yorkshire Post. Further coverage has emphasised the impact that a 6% tax on international tuition fees would have on the higher education sector in Yorkshire.
GVA Loss in the first year of a 6% international student levy in Yorkshire & Humber
Public First calculated GVA loss by using their modelling of what would happen to international student numbers if a 6% levy were imposed on their fees, and if that additional cost was passed on to them by their university. They then calculated the impact of introducing the levy on each parliamentary constituency in the UK, within the first year of its operation.
The research shows a total GVA loss of £134,450,000 in the first year if a 6% international student levy in Yorkshire & Humber. This has been calculated by adding together the loss in GVA of all 54 Parliamentary Constituencies in Yorkshire & Humber.
The top ten Constituencies in Yorkshire & Humber with the biggest GVA loss:
| Constituency Name | Loss in GVA (mn) | Party of current MP |
|---|---|---|
| Leeds Central and Headingley | 33.44 | Lab |
| Sheffield Central | 32.60 | Lab |
| York Central | 15.12 | Ind |
| Bradford West | 9.10 | Lab |
| Huddersfield | 9.02 | Lab |
| Kingston upon Hull North and Cottingham | 7.88 | Lab |
| Leeds South | 3.54 | Lab |
| Sheffield Heeley | 1.61 | Lab |
| Bradford East | 1.57 | Lab |
| Sheffield Brightside and Hillsborough | 1.56 | Lab |
The value of international students as an export in Yorkshire & Humber
Public First used their modelling of the value of international students as an export, taking into account both the direct and subsequently induced economic effects of international students in the UK to determine the figures. They then calculated how this impacts parliamentary constituencies in the UK, within the first year of the levy.
The research shows that the direct and indirect economic benefits that international students bring totals £1, 553, 244,050 in Yorkshire & Humber. This has been calculated by adding together the value of all 54 constituencies in Yorkshire & Humber.
The top ten Constituencies in Yorkshire & Humber with the highest direct and indirect economic benefits from international students:
| Constituency Name | Direct + Additional exports supported (£) | Party of current MP |
|---|---|---|
| Leeds Central and Headingley | 276,827,796.00 | Lab |
| Sheffield Central | 275,960,436.00 | Lab |
| York Central | 127,278,112.00 | Ind |
| Bradford West | 82,063,466.000 | Lab |
| Leeds South | 80,972,270.00.02 | Lab |
| Huddersfield | 77,838,582.008 | Lab |
| Kingston upon Hull North and Cottingham | 57,077,896.00 | Lab |
| Sheffield Brightside and Hillsborough | 40,262,300.00 | Lab |
| Sheffield Heeley | 38,835,353.00 | Lab |
| Bradford East | 38,359,704.00 | Lab |
In April 2024, Yorkshire Universities (YU) – the representative body for twelve universities/HEIs in Yorkshire – published a Statement on International Higher Education. The Statement detailed the value of international partnerships and relationships to YU members, and the added benefits to individual institutions and to the region overall. The Statement analysed the international student population in Yorkshire, and it demonstrated how international students generated significant economic and broader impacts for the universities they attended, the home students they studied alongside, and how they enhanced education, culture, social capital, and the UK’s soft power.
Appendix
Access a PDF of the Appendix here, or see below.
Appendix A: GVA loss in the first year of a 6% international students levy, by constituency
| Constituency Name | Loss in GVA (mn) | Region | Party of current MP |
|---|---|---|---|
| Leeds Central and Headingley | 33.44 | Yorkshire and The Humber | Lab |
| Sheffield Central | 32.60 | Yorkshire and The Humber | Lab |
| York Central | 15.12 | Yorkshire and The Humber | Ind |
| Bradford West | 9.10 | Yorkshire and The Humber | Lab |
| Huddersfield | 9.02 | Yorkshire and The Humber | Lab |
| Kingston upon Hull North and Cottingham | 7.88 | Yorkshire and The Humber | Lab |
| Leeds South | 3.54 | Yorkshire and The Humber | Lab |
| Sheffield Heeley | 1.61 | Yorkshire and The Humber | Lab |
| Bradford East | 1.57 | Yorkshire and The Humber | Lab |
| Sheffield Brightside and Hillsborough | 1.56 | Yorkshire and The Humber | Lab |
| Leeds East | 1.49 | Yorkshire and The Humber | Lab |
| Sheffield Hallam | 1.32 | Yorkshire and The Humber | Lab |
| Leeds North East | 1.31 | Yorkshire and The Humber | Lab |
| Doncaster Central | 1.03 | Yorkshire and The Humber | Lab |
| Leeds West and Pudsey | 0.96 | Yorkshire and The Humber | Lab |
| Kingston upon Hull West and Haltemprice | 0.81 | Yorkshire and The Humber | Lab |
| Bradford South | 0.77 | Yorkshire and The Humber | Lab |
| Sheffield South East | 0.75 | Yorkshire and The Humber | Lab |
| Dewsbury and Batley | 0.66 | Yorkshire and The Humber | Ind |
| Rotherham | 0.63 | Yorkshire and The Humber | Lab |
| Wakefield and Rothwell | 0.62 | Yorkshire and The Humber | Lab |
| Leeds North West | 0.55 | Yorkshire and The Humber | Lab |
| Scunthorpe | 0.52 | Yorkshire and The Humber | Lab |
| Leeds South West and Morley | 0.49 | Yorkshire and The Humber | Lab |
| Halifax | 0.48 | Yorkshire and The Humber | Lab |
| York Outer | 0.46 | Yorkshire and The Humber | Lab |
| Kingston upon Hull East | 0.43 | Yorkshire and The Humber | Lab |
| Barnsley South | 0.37 | Yorkshire and The Humber | Lab |
| Barnsley North | 0.35 | Yorkshire and The Humber | Lab |
| Harrogate and Knaresborough | 0.32 | Yorkshire and The Humber | LD |
| Keighley and Ilkley | 0.31 | Yorkshire and The Humber | Con |
| Great Grimsby and Cleethorpes | 0.31 | Yorkshire and The Humber | Lab |
| Colne Valley | 0.29 | Yorkshire and The Humber | Lab |
| Ossett and Denby Dale | 0.28 | Yorkshire and The Humber | Lab |
| Doncaster North | 0.22 | Yorkshire and The Humber | Lab |
| Doncaster East and the Isle of Axholme | 0.22 | Yorkshire and The Humber | Lab |
| Scarborough and Whitby | 0.22 | Yorkshire and The Humber | Lab |
| Goole and Pocklington | 0.22 | Yorkshire and The Humber | Con |
| Selby | 0.22 | Yorkshire and The Humber | Lab |
| Wetherby and Easingwold | 0.22 | Yorkshire and The Humber | Con |
| Shipley | 0.20 | Yorkshire and The Humber | Lab |
| Pontefract, Castleford and Knottingley | 0.20 | Yorkshire and The Humber | Lab |
| Spen Valley | 0.20 | Yorkshire and The Humber | Lab |
| Rawmarsh and Conisbrough | 0.17 | Yorkshire and The Humber | Lab |
| Calder Valley | 0.17 | Yorkshire and The Humber | Lab |
| Richmond and Northallerton | 0.16 | Yorkshire and The Humber | Con |
| Rother Valley | 0.15 | Yorkshire and The Humber | Lab |
| Skipton and Ripon | 0.15 | Yorkshire and The Humber | Con |
| Beverley and Holderness | 0.15 | Yorkshire and The Humber | Con |
| Penistone and Stocksbridge | 0.15 | Yorkshire and The Humber | Lab |
| Thirsk and Malton | 0.14 | Yorkshire and The Humber | Con |
| Normanton and Hemsworth | 0.12 | Yorkshire and The Humber | Lab |
| Bridlington and The Wolds | 0.11 | Yorkshire and The Humber | Con |
| Brigg and Immingham | 0.11 | Yorkshire and The Humber | Con |
Appendix B: The value of international students as an export, by constituency
| Constituency Name | Direct + Additional exports supported (£) | Wage increase per FTE employee working in constituency | Region | Party of current MP |
|---|---|---|---|---|
| Leeds Central and Headingley | 276,827,796.00 | £2,288 | Yorkshire and The Humber | Lab |
| Sheffield Central | 275,960,436.00 | £3,132 | Yorkshire and The Humber | Lab |
| York Central | 127,278,112.00 | £1,897 | Yorkshire and The Humber | Ind |
| Bradford West | 82,063,466.00 | £1,161 | Yorkshire and The Humber | Lab |
| Leeds South | 80,972,270.00 | £191 | Yorkshire and The Humber | Lab |
| Huddersfield | 77,838,582.000 | £1,482 | Yorkshire and The Humber | Lab |
| Kingston upon Hull North and Cottingham | 57,077,896.00 | £1,231 | Yorkshire and The Humber | Lab |
| Sheffield Brightside and Hillsborough | 40,262,300.00 | £329 | Yorkshire and The Humber | Lab |
| Sheffield Heeley | 38,835,353.00 | £344 | Yorkshire and The Humber | Lab |
| Bradford East | 38,359,704.00 | £389 | Yorkshire and The Humber | Lab |
| Leeds East | 35,869,541.00 | £296 | Yorkshire and The Humber | Lab |
| Sheffield Hallam | 32,707,873.00 | £614 | Yorkshire and The Humber | Lab |
| Leeds North East | 29,825,999.00 | £522 | Yorkshire and The Humber | Lab |
| Doncaster Central | 24,509,920.00 | £104 | Yorkshire and The Humber | Lab |
| Leeds West and Pudsey | 23,362,766.00 | £184 | Yorkshire and The Humber | Lab |
| Bradford South | 19,165,862.00 | £152 | Yorkshire and The Humber | Lab |
| Kingston upon Hull West and Haltemprice | 19,081,924.00 | £124 | Yorkshire and The Humber | Lab |
| Sheffield South East | 17,459,121.00 | £96 | Yorkshire and The Humber | Lab |
| Dewsbury and Batley | 16,004,194.00 | £147 | Yorkshire and The Humber | Ind |
| Rotherham | 15,472,587.00 | £113 | Yorkshire and The Humber | Lab |
| Wakefield and Rothwell | 14,773,102.00 | £79 | Yorkshire and The Humber | Lab |
| Scunthorpe | 12,786,568.00 | £87 | Yorkshire and The Humber | Lab |
| Halifax | 11,673,833.00 | £87 | Yorkshire and The Humber | Lab |
| Leeds South West and Morley | 11,583,811.00 | £78 | Yorkshire and The Humber | Lab |
| York Outer | 11,094,865.00 | £95 | Yorkshire and The Humber | Lab |
| Leeds North West | 10,369,914.00 | £143 | Yorkshire and The Humber | Lab |
| Kingston upon Hull East | 10,330,567.00 | £75 | Yorkshire and The Humber | Lab |
| Barnsley South | 9,120,693.00 | £136 | Yorkshire and The Humber | Lab |
| Barnsley North | 8,399,335.00 | £59 | Yorkshire and The Humber | Lab |
| Harrogate and Knaresborough | 7,788,244.00 | £53 | Yorkshire and The Humber | LD |
| Keighley and Ilkley | 7,753,653.00 | £73 | Yorkshire and The Humber | Con |
| Great Grimsby and Cleethorpes | 7,364,170.00 | £55 | Yorkshire and The Humber | Lab |
| Colne Valley | 7,094,165.00 | £94 | Yorkshire and The Humber | Lab |
| Ossett and Denby Dale | 6,945,195.00 | £79 | Yorkshire and The Humber | Lab |
| Doncaster North | 5,502,684.00 | £81 | Yorkshire and The Humber | Lab |
| Doncaster East and the Isle of Axholme | 5,419,578.00 | £71 | Yorkshire and The Humber | Lab |
| Scarborough and Whitby | 5,328,977.00 | £47 | Yorkshire and The Humber | Lab |
| Goole and Pocklington | 5,216,663.00 | £44 | Yorkshire and The Humber | Con |
| Selby | 5,191,035.00 | £52 | Yorkshire and The Humber | Lab |
| Wetherby and Easingwold | 5,185,485.00 | £44 | Yorkshire and The Humber | Con |
| Normanton and Hemsworth | 5,049,424.00 | £54 | Yorkshire and The Humber | Lab |
| Shipley | 4,942,272.00 | £59 | Yorkshire and The Humber | Lab |
| Pontefract, Castleford and Knottingley | 4,827,217.00 | £32 | Yorkshire and The Humber | Lab |
| Spen Valley | 4,800,594.00 | £52 | Yorkshire and The Humber | Lab |
| Rawmarsh and Conisbrough | 4,216,487.00 | £41 | Yorkshire and The Humber | Lab |
| Calder Valley | 4,186,002.00 | £33 | Yorkshire and The Humber | Lab |
| Richmond and Northallerton | 4,001,049.00 | £37 | Yorkshire and The Humber | Con |
| Rother Valley | 3,721,255.00 | £49 | Yorkshire and The Humber | Lab |
| Skipton and Ripon | 3,665,296.00 | £28 | Yorkshire and The Humber | Con |
| Beverley and Holderness | 3,637,317.00 | £40 | Yorkshire and The Humber | Con |
| Thirsk and Malton | 3,553,379.00 | £29 | Yorkshire and The Humber | Con |
| Penistone and Stocksbridge | 3,413,482.00 | £40 | Yorkshire and The Humber | Lab |
| Bridlington and The Wolds | 2,713,998.00 | £33 | Yorkshire and The Humber | Con |
| Brigg and Immingham | 2,658,039.00 | £22 | Yorkshire and The Humber | Con |
