Scottish universities are still “left in limbo” over proposals for a tax on international students which could cost the sector up to £85 million, the SNP says.
The party says there must be urgent clarity on whether the levy would apply in Scotland, arguing the proposals will put further financial pressure on universities on top of a £30 million bill from increased employer national insurance contributions.
The UK Government has said it will explore introducing a levy on higher education provider income from international students, which would be reinvested into the university system.
The proposal was included in the white paper on immigration released by Sir Keir Starmer’s Government earlier this month, which said further details would be set out in the Autumn Budget.
SNP MSP Bill Kidd said the Prime Minister was “dancing to Nigel Farage’s tune” on immigration.
He said: “Labour’s damaging migration plans are a direct threat to Scotland’s NHS, our economy and our universities.
“The UK Labour Government has already slapped our universities with a £30 million bill with their reckless decision to hike employer National Insurance contributions.
“Our universities have now been left in limbo not knowing if they are faced with a further bill of £85 million directly due to Labour’s political choices, whilst they also face the prospect of finding it harder to attract international students.”
Claire McPherson, director of Universities Scotland, said earlier: “We urge the UK 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.
“We’d hope to see the UK Government defer a decision on the applicability of any levy in Scotland to the Scottish Government, reflecting the fact that university funding is devolved.”
A UK Government spokesperson said: “The international student levy will not apply in Scotland unless the Scottish Government decides to introduce it.”
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