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London Officials Warn Student Levy and Shorter Visas Will Undermine UK Economy

Consultations on the immigration white paper will run until the autumn budget sets levy and visa details, with City Hall analysis showing international students deliver £12.5 billion to London annually.

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Overview

  • The UK government is consulting on its immigration white paper that proposes a levy on universities’ international student income and reducing post-study visas from two years to 18 months, with final rules due in the autumn budget.
  • London Mayor Sadiq Khan, on a trade visit to Accra, condemned the levy and visa cuts as “immense economic self-harm” and urged ministers to preserve the current graduate stay period.
  • New analysis from London Economics, commissioned by City Hall, estimates overseas students contribute £12.5 billion a year to London and £55 billion across the UK.
  • University groups including London Higher and Universities UK warn the measures risk undermining university finances, deterring global talent and eroding Britain’s soft power.
  • London has slipped from first to third in the QS Best Student Cities Ranking 2026 behind Seoul and Tokyo, highlighting rising competition for international students.