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The graduate visa route should remain as it is key to funding British universities and is “not undermining the quality and integrity” of higher education, a new report has said.

The Migration Advisory Committee (MAC) looked at whether the visa was being abused and if it was not being “driven more by a desire for immigration” after Home Secretary James Cleverly requested an emergency review in March.

A graduate visa permits overseas students to stay in the UK for up to three years after completing a university course in the UK. Partners and children can also apply as dependents.

Former immigration minister Robert Jenrick published a report last week calling for the graduate visa to be abolished, claiming it “allowed people to come and work in the gig economy and on very low wages”.

University and industry leaders had voiced fears that the route, introduced in 2021, could be axed or curtailed if the report had been negative, with universities reporting a steep drop in international students applying over fears of restrictions being introduced.

But the committee, made up of five university professors and a Home Office representative, said they found “no evidence of widespread abuse” of the graduate route.

“The risks of abuse are relatively low due to the limited number of conditions the route imposes,” the report said.

Home Secretary James Cleverly arrives in Downing Street.
Pic: PA
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Home Secretary James Cleverly requested the emergency review. Pic: PA

It also found the visa route is helping universities to expand the range of courses offered while making up for financial losses from domestic students and research, and is “supporting the government’s international educational strategy”.

The report said 114,000 graduate route visas were granted for applicants in 2023, with a further 30,000 for dependents.

It said students from India, Nigeria, China and Pakistan account for 70% of all graduate visas, with India accounting for more than 40%.

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MAC chair and leading labour economist Professor Brian Bell, the head of economics at King’s College London, said: “Our review recommends the graduate route should remain as it is, and is not undermining the quality and integrity of the UK’s higher education system.

“The graduate route is a key part of the offer that we make to international students to come and study in the UK.

“The fees that these students pay help universities to cover the losses they make in teaching British students and doing research.

“Without those students, many universities would need to shrink and less research would be done.

“This highlights the complex interaction between immigration policy and higher education policy.”

A government spokesman 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 three months of this year, compared with the same period last year.

“We are considering the review’s findings very closely and we will respond fully in due course.”

Bristol.England.September 07, 2018.The Wills Memorial Tower of Bristol University Seen from Park Row
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Graduate visa holders help fund universities, the report found. (File pic of Bristol University)

Reacting to the report, Mr Jenrick said the graduate route “should be scrapped” and the UK needs to “urgently unwind the sector’s growing dependency on foreign students” as he called the route a “backdoor for foreign students to do low-wage work…that isn’t attracting top talent”.

He said the review’s conclusions were “constrained by the narrow terms of reference deliberately set by the government” to back up their International Education Strategy that includes the “arbitrary target” of attracting 600,000 foreign students a year.

“If you order white paint, you get a whitewash,” he said.

The report found most people on the graduate route had completed postgraduate courses, with the highest growth in the visa from non-Russell Group universities’ postgraduate courses – accounting for 66% of all graduate visas.

Since 2021, the proportion of main applicants aged over 25 has increased by 15 percentage points to 54% in 2023.

It also found graduate visa holders are initially overrepresented in lower-paid work but their job prospects and wages improve over time.

Among the first cohort of graduate visa holders, about half moved to skilled worker visas, primarily into skilled roles.

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Remembrance Day comes at a time when the UK is not ready for war – and the US is not as reliable as it once was

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Remembrance Day comes at a time when the UK is not ready for war - and the US is not as reliable as it once was

Britain’s annual Remembrance Day has a special dimension this year because it is the 80th anniversary of the D-Day landings.

The speaker of the House of Commons, Sir Lindsay Hoyle, and the Imperial War Museum are arranging for images of the men and women who took part in the Normandy campaign to be projected on the Elizabeth Tower below Big Ben.

Political leaders past and present will be on parade to lay wreaths at the Cenotaph, which commemorates “Our Glorious Dead” from two world wars and other military conflicts. Those assembled see no contradiction in the fact they are all bound to have been involved in cuts to the UK’s defence capabilities.

D-Day, when British and American troops fought on to the beaches to liberate Europe, is the defining moment of the UK’s patriotic pride to this day – which is why it was a big mistake by Rishi Sunak in the summer to duck out early from France and the international commemorations of 6 June 1944.

Ever since then Britain and Europe have nestled in the security umbrella extended by the United States.

The Americans came, belatedly, to the rescue in both world wars and we assume that it would do so again. The North Atlantic Treaty (NATO) is explicit that an attack on one member is an attack on all, and the US is the dominant contributor to NATO in both cash and military might.

There was already fresh uneasiness among British politicians about how safe we really are as tensions grow around the world from Ukraine to the Middle East to China. A recent House of Commons report was entitled “Ready For War?”.

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The re-election of Donald Trump and his “America First” priorities have increased those pressures.

The King attends the Remembrance Sunday ceremony at the Cenotaph in 2023. Pic: AP
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The King attends the Remembrance Sunday ceremony at the Cenotaph in 2023. Pic: AP

Russia’s territorial aggression against Ukraine has brought bloody confrontation between nation states back on to our continent.

Meanwhile, Mr Trump, the US president-elect, has said he feels no obligation to defend European countries who do not spend as much as he thinks they should.

Given the enthusiasm of successive governments to cash a peace dividend by cutting back defence spending, there are real doubts as to whether the UK would be able to defend itself if it came to another war, according to General Sir Roly Walker, who has taken over as the head of UK armed forces.

This summer he set himself the task of readying “to deter or fight a war in three years”.

He is aiming to double the “lethality” of the army in the face of threats from Russia, China, Iran and North Korea which may be separate or co-ordinated.

Republican presidential nominee and former U.S. President Donald Trump takes the stage to address supporters at his rally, at the Palm Beach County Convention Center in West Palm Beach, Florida, U.S., November 6, 2024. REUTERS/Brian Snyder
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Donald Trump after taking the stage to declare victory. Pic: Reuters

The recent BRICS summit in Russia and the deployment of North Korean troops to fight with Vladimir Putin’s forces in Ukraine both show their willingness to internationalise local conflicts. George Robertson, the former defence secretary and NATO general secretary heading a defence review for the government, has also identified the threat from this “deadly quartet”.

General Walker says he can increase lethality within existing spending by smarter use of technology such as drones and AI.

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The problem is that this will still require diverting resources from existing capabilities, when deployable fighting manpower is already at its lowest for 200 years.

British politicians are increasingly aware of the need to strengthen capability and a number of overlapping inquiries are under way.

But given the overall pressures on the national budget, they have been reluctant to focus on the full financial implications.

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Badenoch calls out Lammy at PMQs

At Prime Minister’s Questions on Wednesday, the new leader of the opposition Kemi Badenoch challenged Sir Kier Starmer to say when the UK will spend 2.5% of GDP on defence; he retorted that it remains an unspecified commitment but that the last Labour government was the last to spend as much. From Mr Cameron to Mr Sunak, the Conservatives never did.

This sparring ignores the reality that for effective security, spending will need to rocket to 3% and beyond, and that Mr Trump may well be the one making that demand.

The US spends 3.5% of its national wealth – matching 68% of the defence spending of all the other members on its own.

Read more:
D-Day: The story of 24 hours that changed the world
Is the UK preparing for war amid threats of conflict?
UK must be ready for war in three years, British Army head warns

Vladimir Putin meets  Recep Tayyip Erdogan on the sidelines of the BRICS summit in Kazan. Pic Reuters
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Vladimir Putin meets Recep Tayyip Erdogan on the sidelines of the BRICS summit in Kazan. Pic Reuters

They have not all yet hit the official NATO target of 2%, designed in part to “Trump proof” the alliance against the possibility of an American pullout.

The US currently has 100,000 troops based in Europe, increased by 20,000 since Mr Putin’s attack in 2022.

The next Trump administration will certainly want to reduce that number. But a slow reduction of the US commitment is happening in any case.

This week, Professor Malcom Chalmers told MPs on the Defence Select Committee: “The most plausible planning assumption for the UK right now is that America will provide a progressively smaller proportion of NATO’s overall capability and we are going to have to fill those gaps.”

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Can Trump’s tariffs impact the UK?

Given the likelihood that Mr Trump’s proposed new tariffs will slow the global economy, Sir Keir and the Labour government will have even less to spend on public services than it is proposing. It seems inconceivable that the UK would willingly go beyond 2.5%, whatever the current defence review says is necessary for the defence of the realm.

Just in current defence spending, John Healey, the new defence secretary, claimed he had inherited a £17bn “black hole” of unfunded planned spending from the Conservatives.

Ukraine is likely to be the first flashpoint.

Volodymyr Zelenskyy’s supporters want the US to increase its military aid when the US wants Europe to take more of the burden of defending itself as the US “pivots” to the greater threat it sees to itself from China.

Mr Trump has said he plans to end the Ukraine conflict in 24 hours.

 Donald Trump and Ukraine's President Volodymyr Zelenskiy meet at Trump Tower in New York City, U.S., September 27, 2024. REUTERS/Shannon Stapleton REFILE - QUALITY REPEAT
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Ukraine’s President Volodymyr Zelenskyy with Donald Trump in New York. Pic: Reuters

In essence, Mr Putin would keep some of his territorial claims in Donbas and NATO would not extend its security guarantee to what remains of an independent Ukraine.

Mr Trump has already said that NATO’s longstanding and vague offer of eventual membership was “a mistake”.

Anxious not to alienate the US further and hard-pressed financially, some leading European nations including Germany appear ready to go along with such a sell-out.

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A number of security experts, including former acting deputy prime minister Sir David Lidington, say this deal would be “Donald Trump’s Munich”.

This is a reference to the “peace in our time” deal agreed by prime minister Neville Chamberlain with Adolf Hitler, which failed to halt further aggression by Nazi Germany before the Second World War.

Then, as previously with the First World War, “America First” instincts were to leave the Europeans to sort out their own mess. But American forces ended up shedding their blood decisively in both conflicts.

Once again, the UK and Europe are not ready for war, and relying on an increasingly unreliable US. The politicians, prime ministers and generals gathering at the Cenotaph to honour the war dead should have much on their minds.

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Armed forces recruitment crisis could worsen over VAT on private school fees, insiders say

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Armed forces recruitment crisis could worsen over VAT on private school fees, insiders say

A recruitment and retention crisis in the armed forces will grow unless the government exempts military families from paying VAT on private school fees, insiders have warned.

Sky News understands that more and more families are raising concerns internally about the “damaging” policy after the chancellor failed to offer sufficient protections in her budget.

They say a promise to increase an allowance funded by the Ministry of Defence (MoD) that helps to cover the cost of school fees does not go far enough, and that highly experienced personnel – officers and other ranks – will quit if Rachel Reeves does not perform a U-turn.

Such a loss in skills would weaken UK defences at a time of rising threats, the insiders say.

A soldier with a child at boarding school, who asked to remain anonymous, said: “I will have to leave military service, as I will not inflict another school move on my child.”

He said: “On one side, the chancellor wore a poppy during her budget announcement, and then proceeded to deal a damaging blow to members of His Majesty’s Armed Forces by not including a simple exemption.”

Defence Secretary John Healey joins serving military personnel to hand out poppies and collect donations for the Royal British Legion Appeal at Victoria Station, during London Poppy Day. Picture date: Thursday October 31, 2024.
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Defence Secretary John Healey joins serving military personnel to hand out poppies. Pic: PA

An army spouse, who asked for her identity to be protected because her husband is serving, said: “This is people’s children. This is people’s money in their pocket.”

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She told Sky News: “If there is a nice job offer outside the military… that is going to look way, way more attractive than it did a few months ago. The army is in a recruitment and retention crisis, so why would you do something like this?”

Offering a sense of the scale of the potential impact, the Army Families Federation, an independent charity, said nearly 70% of families that shared evidence with it about the policy said without protection from the full cost of the VAT they would consider quitting the service.

The mobile nature of military life – with postings around the UK and overseas – often requires service personnel to move every few years, with any children they have forced to relocate with them, transiting in and out of different schools.

To protect against this disruption some parents decide to send their kids to private school – often to board.

More than 2,000 of these personnel – the majority of them in the army – claim money from the MoD to help cover the cost of private school fees.

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Read more:
Britain must be able to confront ‘deadly quartet’
Former NATO chief to lead UK defence review

Eton warns VAT will hike annual fees
Government accused of ‘rushing’ VAT plan

The Continuity of Education Allowance (CEA) funds up to 90% of tuition fees but families must pay a minimum of 10%.

Many of those who take this option will have agonised over the affordability of the portion they will still pay, which can amount to tens of thousands of pounds per year.

They will now have to pay more to cover the VAT on this portion of the bill – or else pull their children out of school, a nightmare option, especially for those serving abroad.

In addition, some other military families that do not qualify for the education allowance – which is only allocated under a very strict criteria – still opt to put their children into boarding school to ensure the continuity of their education at a single location.

They will have no protection from any of the VAT burden.

James Cartlidge. Pic: PA
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James Cartlidge. Pic: PA

James Cartlidge, the shadow defence secretary, said he has received a lot of messages from impacted families and is urging the government to give them an exemption.

“The emails I’ve had are saying: I’ve got to choose between my child and serving my country,” said Mr Cartlidge, who previously served as a Conservative defence minister.

“The government really needs to respond to this quickly.”

An MoD spokesperson said: “We greatly value the contribution of our serving personnel and we provide the Continuity of Education Allowance to ensure that the need for the mobility of service personnel does not interfere with the education of their children.

“In line with how the allowance normally operates, the MoD will continue to pay up to 90% of private school fees following the VAT changes on 1 January by uprating the current cap rates to take into account any increases in private school fees.”

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BTC’s ‘incoming’ $110K call, BlackRock’s $1.1B inflow day, and more: Hodler’s Digest Nov. 3 – 9

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BTC’s ‘incoming’ 0K call, BlackRock’s .1B inflow day, and more: Hodler’s Digest Nov. 3 – 9

Analyst forecasts $110K Bitcoin price, BlackRock sees $1 billion in daily inflows into spot Bitcoin ETF, and more: Hodler’s Digest

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