'They have powered Manchester's rebirth... this would be a tragedy'

The government has been warned that stopping foreign students from coming to the UK would be a 'tragedy' for northern cities. Former Chancellor George Osborne said the move could see universities, which have 'powered' Manchester's regeneration, go 'bust'.

It comes after 28 northern universities wrote to the Prime Minister urging him to keep the current student visa programme in place, warning its removal or reduction would harm the British economy. The letter, which was signed by leaders at four Greater Manchester universities, warns the move could lead to cuts in teaching and research, 'choking off the life chances of thousands of young people'.

They wrote that income from international students' tuition fees has long been used to fund research and has 'increasingly become critical' to cross-subsidise the teaching of UK undergraduate students. The letter also argues that, on top of visa fees, international students who find work and start businesses contribute billions of pounds in income tax, national insurance and VAT every year.

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It follows a report by the Migration Advisory Committee found 'no evidence of any significant abuse' of foreign student visas and recommended the graduate route remains in place. But there are fears that the government may still make changes to the scheme.

Speaking at in Manchester today (May 21), Mr Osborne, who served at the top of the Conservative government as Chancellor for six years, said such a decision would be 'absolutely ridiculous'. He said: "This kind of obsession with immigration numbers that would lead you to cutting off foreign students coming here to study, to pay us money, to have a connection with our country, to contribute to our economy and then almost certainly return to the place they came from, it's absolutely a case of the tail wagging the dog.

"Trying to solve a short-term political problem for the Conservatives and indeed for the Brexiteers because they promised that Brexit would somehow manage immigration and on their watch immigration has doubled since the referendum. They've pulled every other lever and it hasn't worked so now they're turning to the one which is really productive.

"I think [University of Manchester vice-chancellor] Nancy Rothwell made this point really well today. It's one thing for universities who've struggled, but for some of these Northern cities, these universities are absolutely at the heart of the economic engine, of the job creation in the city, anyone who looks at the history of Manchester over the last 50 years, from the 1970s and the 1980s, and the industrialisation, will know that the universities powered the regeneration of the city centre.

"So there's a real risk that you get a dramatic fall in foreign students coming, the income will be choked off, no one has the nerve to say that British students should pay more or take out bigger loans because that's been frozen since the time I left office, and so you might see universities going bust and that would be a total tragedy - and an avoidable tragedy."

He added: "Generally, I would say to this government, if you listen to the more sensible voices, they tend to do political better than and when they listen to the more crazy voices, they tend to do worse."

In a letter to the Prime Minister on Monday (May 20), the University of Manchester, Manchester Metropolitan University, the University of Salford and UA92 said: "Universities from Sunderland to Sheffield, Leeds to Lancaster, Liverpool to Teesside, Bradford to Huddersfield, and York to Newcastle will all be harmed by the removal or reduction of the [graduate route] visa. It is an intrinsic part of the educational offer that has made the UK so attractive to brilliant students from all around the world. "

A government spokesperson said: "We are committed to attracting the best and brightest to study at our world-class universities, whilst preventing abuse of our immigration system, which is why the Home Secretary commissioned an independent review of the Graduate Route. We have already taken decisive action to address unsustainable levels of migration and our plans are working, with a 24% drop in visa applications across key routes in the first 3 months of this year, compared with the same period last year."