To have or not to have non-EU students

To have or not to have non-EU students: economic impact and campaigning strategy London First Presentation LSE Seminar 1 March 2013

About London First • non-profit organisation • mission to make London the best city in the world in which to do business. • 200 corporate business and university members

About London First We aim to influence national and local government policies and investment decisions to support London’s global competitiveness.

London is a great global city For this to continue we need to continue to be open for business – the free movement of people, capital, goods & services. . . and businesses ability to move people is increasingly constrained: Ø too many restrictions on who can come and work, study or play in the UK.

Why student immigration policy matters: London is the most popular city in the world for international students. Higher Education is a major British export.

National picture: • • • HE sector is our 7 th largest export sector value of UK education exports £ 14. 1 billion (2008/09) Of which, £ 7. 9 bn HE Of which £ 5. 2 bn non-EU HE students HE exports could grow to £ 16. 9 billion by 2025

Net economic impact? • Government questioning the costs of international students – transport, health, housing, job displacement, etc • And the value of long term benefits e. g. soft power • Can we quantify?

The challenge: The government is seeking to crack down on immigration: Øreducing net migration levels from “hundreds of thousands” to “tens of thousands” They can’t do in EU; so all focus outside:

Year end flow Work, family and students 02 03 04 05 06 07 08 09 242 253 10 261 11 600 500 400 In flow 200 100 49 243 242 206 113 158 58 288 253 296 300 92 113 115 162 158 80 64 62 68 57 51 113 106 113 120 110 100 129 21 21 29 38 Out flow 200 170 55 39 - 29 80 82 80 89 96 78 74 93 139 143 72 71 54 99 97 106 73 66 48 82 89 94 400 European Union Non-European Union 234 206 300 British 279 258 228 206 203 289 Net 144

Year end flows by type and citizenship Work 02 03 04 05 06 07 08 09 10 54 52 99 88 91 42 45 49 11 300 200 73 93 In flow 83 23 34 58 45 5 75 100 24 60 47 85 100 - 66 100 113 65 22 37 64 63 15 17 63 65 70 125 86 61 48 83 31 58 29 32 10 71 21 74 Out flow 81 74 25 64 35 90 60 63 79 74 200 300 British European Union 16 67 46 53 79 93 Non-European Union Net 68 11 36 78 41 76 19

Family 02 03 04 05 06 07 08 09 10 11 52 56 52 120 100 80 In flow 40 20 53 3 - Out flow 40 57 46 14 20 74 73 60 31 1 14 17 5 11 37 5 13 18 53 65 31 9 20 36 2 11 5 13 38 4 10 61 65 44 21 34 4 13 34 29 9 11 19 10 7 33 36 2 7 8 9 16 28 6 9 14 60 80 British European Union Non-European Union 40 Net 7 10 14 13 22 22 7 8 2 7 44

Students 02 03 04 05 06 07 08 09 10 11 250 209 207 200 188 In flow 151 150 120 118 100 111 91 77 100 110 95 155 126 124 181 180 126 114 104 50 23 Out flow - 19 8 7 4 6 8 2 1 6 18 5 7 2 4 22 23 7 4 4 5 5 5 9 4 26 9 3 2 8 40 6 3 13 5 42 45 11 7 7 6 8 8 13 6 50 British European Union Non-European Union Net 41 5 6

Economic Impact of Government Policy • 2011 policy reforms - objective to reduce international students by 25% or up to 80, 000 • The Government’s own economic impact assessment in 2011 said policy reform would cost the UK up to £ 3. 6 bn over this parliament. • Leading to a reduced global talent pool

Our goal: evidence based policy making Collect data properly, so we know who is leaving, as well as entering, and can understand the contribution made by skilled migrants. The Office for National Statistics is now working on ways to “better count students in immigration flows”. The full implementation of e-Borders by 2015

Our goal: an immigration policy that enables. . . qualified people to study in London We strongly support crack-down on bogus colleges – students in the UK must be bona fide and studying at accredited institutions, at whatever level. Immigration rules must be clear and enforcement action proportionate. And students who are bona fide should be classified as temporary visitors and not treated as migrant.

Our goal: an immigration policy that enables. . . people to come to London securely and efficiently UK Border Force given sufficient resources to monitor and process immigration UK Border Agency given sufficient resources to process visas speedily and effectively UK Border Agency improve management capability and its operations

Our goal: an immigration policy that attracts. . . people to come to work, study, visit Immigration policy aligned to growth agenda Open for business messaging from Government UK Border Agency focus on customer service

Campaign

Key elements of campaign Co-ordinated, prioritised deployment of all of LF’s expertise and attributes Building support among stakeholder groups Sustained voice in key media, pro-active and opportunistic Events that inform, educate and provoke debate Sensible use of digital and social media

National Media Hard hitting but constructive Regular comment & letters in FT, Guardian, even Daily Mail Telegraph letter off the back of PM’s India Visit BBC Daily Politics Show

Stakeholder work Immigration Working Group Meetings: Immigration Ministers past and present (Mark Harper MP, Damian Green MP), UKBA CEOs past and present (Rob Whiteman, Lin Homer) Strong alignment with Mayor of London House of Lords – Baroness Jo Valentine Coalition building with other stakeholders – across political spectrum

Stakeholder Alliances Universities UK London Higher University of London Individual universities Association of Colleges

And a year on? Visible progress on the issues: – Ø Home Office will have removed students from the migration target (possibly) Ø Clearer data on student numbers Ø Improvements to visa processes and immigration guidance Ø Positive messaging leading to… Ø Growth in international student numbers coming to UK LF established as leading the business campaign, in media and political circles and among our members We will have attracted more support – from our own members and other business leaders

Questions