Speaking on BBC’s Today program on July 22, Phillipson recognised “the difference international students make when it comes to the local economy and to regeneration … the soft power and the reach they give us around the world as they return home after their studies”.  

To the relief of the sector, Phillipson said that the Graduate Route visa, which was under review earlier this year, will be maintained under the labour government. 

“What we had under the Conservatives was a fascination and fixation with picking fights with the sector completely needlessly, just using universities as a source of cheap headlines. That is now at an end but we need to get the regulation right,” she added. 

Responding to questions about the dire financial situation of many UK universities, Phillipson didn’t rule out raising tuition fees in line with inflation and denied that the government would act as a “lender of last resort”.  

“Universities are autonomous and there are expectations around how they manage their budgets, I would expect them to do that without seeking any calls on the taxpayer.  

“We need to see a sharper focus on the regulation of our sector to make sure that universities are on a firm footing,” said Phillipson. 

What we had under the Conservatives was a fascination and fixation with picking fights with the sector completely needlessly

Bridget Phillipson

Earlier this year, the number of UK study visa applications dropped to record lows after the previous government brought in rules banning masters taught students from bringing dependents. 

The attractiveness of the UK was further damaged by the government’s review of the Graduate Route and negative messaging surrounding migration and international students.

“The biggest difficulty for universities this year has been caused by the fast downturn in student numbers,” Viviene Stern, chief executive of Universities UK, said on the program.  

“The government needs a positive statement that universities are welcome and that the graduate route is going to stay,” added Stern.  

The UK’s university funding crisis is increasingly catching the attention of the mainstream media.

The Sunday Times this weekend called the situation a “catastrophe” that has forced 66 universities – more than a third of the sector – to cut jobs and courses.

“The real value of student fees has fallen substantially because of inflation, and as a result of that, universities have become heavily reliant on recruiting from China, India and Nigeria,” BBC education editor Branwen Jeffreys said on the program.

Recruitment from these markets took a big hit due to the dependants ban and the currency devaluation in Nigeria, highlighting the volatility of university finances when they’re exposed to student recruitment, Jeffreys added.