(PDF) Brexit - A review of impact on future of United Kingdom

CONSULTANCY REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Literature Review.............................................................................................................................1
Theoretical Analysis- Brexit and its influence on European students.............................................4
Literature Review.............................................................................................................................7
Theoretical Analysis- Brexit and its influence on international students........................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
United Kingdom is considered as one of the best countries for higher education in world.
The United Kingdom provides an academic experience that is very hard to beat. UK universities
are world recognised universities with innovative approach of teaching and the has world best
teachers to deliver it. The educational system is one of the main contributor in UK economy and
results in giving high GDP rate. With the historical decision of Britain leaving European Union
has impacted almost every sector of UK including educational system in Britain. It would also
affect the decision of students from Europe as well as the international students to study in UK
universities. It has been evident from the fact that, Brexit has major influence on the educational
system of UK as well as on EU. The students from EU, who were studying or wishes to study
will be considered as international students as vice versa. They will also be obliged to all the
legal process of visa and immigration to get admission in UK universities. The Brexit will also
influenced the international students from other European countries like USA, Canada, Australia,
Germany, France and Japan as to visit in large quantum to get higher education from UK's
universities. The present study will provide a brief information about the manner in which Brexit
places direct influence on EU and other international students. On the other side, the report will
also depict about the impact of higher fee of UK universities after Brexit that will influence EU
and other international students.
SWOT Analysis of Brexit and its influence on European students and international students
Strengths-
 Limited visas will be allocated to students
 Cost saving to UK economy
Weaknesses
 Tuition fees will increase
 Immigration will get complex
Opportunities
 Enhancement in overall education system
 More jobs for UK researchers, academicians
Threats
 Loss of quality EU researchers
 Decline in admissions of international students
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Literature Review
Theme 1: Factors attract Students to study in UK.
As per the view of Hobolt (2016), the perceived quality of UK higher education is the
main reason, students from Europe come to study science, technology, engineering ans Maths
courses in the country. Britain higher education and qualification have a remarkable international
reputation and the degree from UK is recognised globally. Many multinational companies like to
follow the education system of Britain. There are many opportunities that are being offered by
UK educational system. It provides wide choice in selecting the best suited field of study and
institution, the duration of study in England helps in reducing tuition and accommodation cost to
outsider. Along with the study, UK government allows the students to work as a part-time job,
internship or placement and develop valuable skills that are added in their CV. Most of the UK
universities provides merit based scholarship programs and funding opportunities to support
study and cost of living pertaining to UK students.
As states by Goodwin and Heath (2016), the problem in Britain's education system are
the political issues arising which are required a solution. This year a proposal has been put
parliament regarding higher education bill, universities have the power to increase their fees
structure, if they perform good in graduate earning. The students with wealthier parents are
earning, more than those from less wealthy family. It results in compressed financial condition
for universities with mostly working class students.
Theme 2 : Contribution of education system in GDP.
As per the view of Portes and Forte (2017), UK universities generates more than 95
billion pounds for the country' economy and support more than 940000 jobs in UK. The GDP
contribution of universities is 1.2 percent or 21.5 billion pounds in 2014-2015 (Universities
‘generate £95 billion for UK economy’ , 2018). The impact of universities on the UK economy is
growing. It can be said that higher education sector contributed to over £73 billion and provide
more than 750,000 full-time job opportunities for people in 2011 to 2012. This equates to 2.8%
of gross domestic product up from 2.3% in 2007 to 2008. In 2015-2016, the number of students
in UK universities are 2.28 million, from which around 5.6% are from other EU countries and
13.6% of whom are from non EU countries (Brexit and higher education, 2018). The 2011
census report found that around four out of 10 people aged between 25-34 had a degree level
qualification or above.
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Theme 3: Effect of Brexit on UK's Education system.
As per the view of Wilson (2017), Brexit will cause a significant fall in the number of
students from EU who wishes to study in UK's universities. Post Brexit, the UK universities will
likely to increase its tuition fees. The reason behind increasing university fees is to ensures that
university will not be underfunded because of reduction in students from EU. The EU students
who were studying in or wants to study in UK will be considered as international students
(Higher education’s wish list for Brexit , 2018). However, they have been bounded with all legal
obligations, like complexed and complicated visa process, immigration system etc. it will lead to
decrease in the number of students from other countries of European Union. As addressed by
Modiano (2017), the impact of Brexit could be on both the financial sustainability of UK
universities, as well as the overall quality of their scholarships. There is a main concern that
British universities gets almost 15% of funds from the EU for the infrastructure, new lab, library
etc., it will affect the educational system of UK. After Brexit happen, there are possibility of not
getting funds and will have negative impact on UK's educational system.
As stated by Corbett and Gordon (2018) after the vote of Brexit, it has impacted higher
educational system of UK a lot. UCAS figures shows that there is 7% fall in students applying
from EU countries. Many universities are depend on the free movement of students from
European union countries to UK (Peters and et.al., 2018). After Brexit, the students mobility
programme, Erasmus will have severe affect as it provides benefit to almost 85000 UK students
on study and work placement. All these outcomes will ultimately depends on the final
negotiation of Brexit.
As stated by Ellison (2017), there are certain rules which are framed by European Union,
which has to be followed by United Kingdom in its legislation, which is Right to education in
UK provided by the Human Rights Act. In addition to it there is a law of the Education Act
1996, which states compulsory educations of child in England and Whales. All these law will be
no longer in constitution after Brexit, which can affect the educational system in United
Kingdom.
Theme 4: Education system in the UK
As per the views expressed by Hobolt (2016), like any other sector, Brexit has also
impacted on the educational system of United Kingdom and European Union countries.
Educational system is one of the major contributor to the UK's economy and its GDP. Out of
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which the students from EU countries plays a major role in contributing in UK's economy (UK
education sixth in global ranking ,2018). Post-Brexit, the European students will be considered
as international students and are bounded by legal obligation of complexed visa and immigration
system. It leads to decrease in the application of students from EU countries. It is possibly
because of the noticeable to the aspects of European students that are bounded by the free
students mobility.(Goodwin and Heath, 2016). Their is a main concern is the funding UK
universities are getting from EU which are likely to have negative impact on UK educational
system. Brexit will possibly make the UK a less desirable for higher studies because of its high
tuition fee and high living cost. With all the consequences arises, education in the UK will
remain an attractive and important option for many students.
Theoretical Analysis- Brexit and its influence on European students.
Brexit is a short way of saying Britain exit from European Union. On 23rd June 2016 a
voting has been done on whether Britain should remain in EU or leave it. The referendum voting
has decided to leave EU, Brexit is going to happen on 29 march 2019.
Brexit has possibly the negative impact in almost all the sector in UK. The sectors which
will be highly affected by Brexit would be Financial sector, automotive, airline sector,
agriculture, food and drink, chemical and plastics. The one sector that Brexit would affect is
Educational system in UK and European Union (The problems in Britain’s education system are
political in origin - and they require a political solution , 2018). The decision of Brexit will
have some serious consequences for the future of higher education in England, Scotland, Wales
and Northern Ireland. Like increasing universities fees, visa formalities, immigration processes
etc.
The education system of UK is divided into four main parts, primary, secondary, further
and higher education (Hazelkorn, 2018). After the referendum of Britain exit from European
union, the main question arises is the impact of Brexit on the educational sector of United
Kingdom and European Union, and how it would affect the students studying in UK or wants to
study in UK. As per the statement of EU governor, UK university is an important part of EU
educational system (Number of EU students applying to UK universities surges despite Brexit
fears , 2018). Even if Brexit happen, EU university will be united with all the universities of UK
and will work for it.
The current situation of Education:
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There are over 120000 EU students across the UK, that is more than 6% of all full time
students in Britain's Universities. These generates over 3 billion pounds for UK's economy as
well as 20,000 jobs opportunities. On a broader level, the higher education sector in Britain
contributes 2.08% of GDP that generates 73billion pound annually and creates 750,000 job
opportunities (Impact of Brexit on Higher Education Sector in the United Kingdom, 2018).
Higher education system of UK has a global success (Growing evidence of Brexit’s impact on
EU students , 2018 ). The United Kingdom universities are highly reputed worldwide. As Brexit
is considered, it will likely to affect the UK and EU educational system and the students wants to
study in either countries of EU or in Britain.
In year 2015-2016, there are around 2.28 million students who were studying in UK
universities, in which around 5.6% are from other EU countries and 13.6% of whom are from
non EU countries (How will leaving the EU affect universities and research? Brexit Means ...
podcast , 2018). Before voting of Brexit, EU students have full right to reside in the UK and has
the same right as given to UK students.
With the significant increases in the tuition fee of British universities with encouraging
their overall learning experience. An increasing numbers of British students are choosing to
pursue their higher education in other European countries.
Potential Impact of Brexit on Higher Education
Britain's universities and academic research, centres of learning and teaching techniques
have a global reputation for its excellence work which owns a huge amount to being part of the
European Union (Riddell, 2018). There has been lots speculation of potential impact of Brexit on
higher education in the United Kingdom. It is because of many factors that will affect the
number of students studying in UK. Access to EU research funding and recruitment of EU staffs.
The students who are already studying in UK universities will be less affected by Brexit
(McCaffery, 2018). The legal process of UK leaving Europe will take around two years, and
there are less possibilities that UK will increase its tuition fee during the particular period. But
the student’s wishes to study in UK after Brexit happens will be tough as before. It would
increase the cost, as after Brexit, there were many travel restrictions and rising cost of tuition fee.
The UK's Universities and Colleges Admission Services (UCAS) reported that the
students applicants from EU for higher education in UK institutions had fallen by 7% in 2017-
2018 (Peters and et.al., 2018). Brexit will affect the students as well as the staffs of British
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universities, about 15% of teaching and research employees in UK's 132 universities are from
EU countries As there are possibilities that after UK leaving European Union, tuition fee will
increased in UK universities as EU students will be considered as international students. The visa
process for UK will also become more complex and complicated (Exiting the EU: challenges
and opportunities for higher education ,2018). Similarly, those UK students who are wishes to
be a student and wishes to study in different EU universities be treated as international students
in European Union countries.
However, with the consequences of Brexit, there are likely to be possible in reduction of
the number of students from Europe to studied in UK universities for further education. The
impact of Brexit could undermine both the financial sustainability of UK universities, as well as
the overall quality of their scholarships (Brown, ed., 2017). From assessment, it has identified
that British universities are receiving more financial support from EU. Hence, after brexit
development regarding infrastructure, new lab, library etc associated with UK educational
system will; be affected adversely. A survey conducted by Hobsons on approaches of students, it
is revealed that 43% students felt that Brexit has an affect on their eventual study destination.
Out of which 832% say it has made less possibility of them studying in UK (The Brexit Effect on
Higher Education, 2018). The main concern was because of the increasing restriction on
studying in UK and the probable deflation in British pounds. In many areas of Britain, the
students population is the main contribution in the local economy, decreasing in the number of
students is not a good sign for the GDP of UK.
An survey by QS has been done with 100 interviews in which 1000 students from EU
countries has responded that they are having the negative perception about the impact of Brexit
on their career and this negativity is discouraging them to studying in UK (Ball, 2017). The
students were worried about the other legal boundation on them for studying in UK post Brexit.
It was clear that uncertainty about post-Brexit has already impacted on students decision of
studying in UK.
The European Region Act Scheme for the mobility of University Students (Erasmus) is
funded by the EU. It is operating from 25 years. After Brexit, UK students will lose access to this
programme and the opportunities it is offering to UK students so far. All the term will depend
upon the exit agreements between UK and EU.
Positive impact of Brexit on educational sector
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The upcoming period of Brexit is full of uncertainties and changes but on a good side, the
demand of higher education is very high in UK. The decreasing number of EU students in UK
universities will give a chances to the domestic students as to increasing the number of
admission in these institutions (Hill, Smith and Vanhoonacker, 2017). The reputation of UK
University will continue to attracting all international students. To giving high priority in order to
provide quality education, 24 European countries have signed a joint statement in 2016 to
continue the collaboration of universities (Brexit and higher education , 2018) . Despite all the
consequences, education in the UK will remain an attractive and important option for many
students. UK will try to attract more students from EU so that they don't drop UK universities.
The European University Association (EUA) says that regardless of the result after
Brexit, British university is an important part of European family of universities (Nugent, 2017).
The community of knowledge and learning is strong and long-standing. EU has decide to work
with the British universities as the universities like Oxford and Cambridge are among the world
best universities and contributed in many research work.
Demand of higher education is very high which will attract some of the EU students.
Universities would not suffer financially and will offset the reduction from the local students.
Decreasing number of EU students will increase the chance of UK students to study in these
universities (EU Students Studying in the UK – What Will Brexit Mean For Me?, 2018). A report
from Higher Education Policy Institute (HEPI) revealed that top British universities such as
Oxford and Cambridge makes additional revenue of 10 million pound.
Literature Review
Theme 1- Factors influencing choice of students to study overseas
As per the views of Hill, Smith and Vanhoonacker (2017), students prefer to study
overseas as it has various benefits to them. There are various students who have major
contributions to the economies and are mainly considered educational markets. It can be seen
that main education centers or locations are in UK, USA, Canada, Australia, Germany, France
and Japan where students visit in large quantum for directing their future in the best possible
manner. They study in these well-developed countries and as a result, gain better education in
variety of courses quite effectually.
Nugent (2017) says that Australia is the fifth leading education destination for
international students. This is evident from the fact that 7 % of world share accounts for
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Australia. Australian universities have increasingly relying on research activities for improving
upon their education standards. Apart from this, Choudaha (2017) analyzed that opinion of
families influences decisions of students and exert views which are based on funding the whole
education. Moreover, friends' opinion is another leading factor to influence the behavior of
students to study overseas. These are major reason for influencing students includes possibility
of friends studying in same colleges, personal experience gained by them which helps them to
make decisions.
Modiano (2017) says that financial condition of students' is another major factor which
play crucial role in exploring decision to study in abroad. When financial position of student is
good, then he prefers to have education in particular host country and specific institution to get
admission for completing higher education. Financial condition is one of the important element
which drives students to study in the UK. When fees are low enough, students from different
nationalities are attracted for studying in the nation.
Theme 2- Making contribution to economy of UK
According to the views of Findlay and et.al., (2017), education market of UK is the
largest market contributing to the UK economy to a high extent. This is evident from the fact that
there are more than 2 million people who are enrolled in higher education institutions in England
at various elite universities. Department of Education of UK provides £9 billion of up-front
funding per year which are in the form of grants and tuition fees which is equivalent to £7903
(The higher education market. 2018). While, earlier in 2007-08 financial year only £6 billion
were being granted. The government has removed limitations on the number of student’s
institutions could accept from 2015-16 for allowing more students to access higher education.
According to Bouoiyour and Selmi (2018), UK economy is benefited by higher education
market in the best way possible. There is greater level of competition for students between higher
education providers for improving education standards. Marketing budgets have been increased
by such providers of education for luring students. This means that this market is delivering
value for money for students and taxpayers up to a high extent. Moreover, when students
participate in higher education, it shows relevant financial commitment of students with average
debt of nearly £50,000 for average of three-year degree course (Wilson, 2017).
Hodson and Peterson (2017) says that education sector spending’s have increased in UK
as more number of people are travelling to UK and getting admissions in institutions of their
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choice. The public expenditure on higher education was 41655 million GBP which clarifies that
UK is the largest education hub leading growth of economy in effectual direction. This has
accelerated growth of UK and major revenue is also being generated from it. On an average,
overseas students contribute £31.3 million net contribution to UK economy.
Theme 3- Impact of relation of UK and EU on students
As per the views of Altbach and de Wit (2017), UK and EU relations are not good as UK
has decided to leave EU which is better known as Brexit. There will be both long-term and short
term impact on international students up to a major extent. This is because there will be major
shifts in terms of political and institutional. However, relationship between EU and UK will not
change overnight from its member states. It will take another one year to completely leave UK
from EU and many negotiations are to arrive meanwhile. Impact on pound sterling is noticeable
as it has gone to all time low of 15 % and is getting weaker against other stable currencies. It has
major impact on students to both incoming and outgoing global students who pays tuition fees in
a currency other than their local currencies.
Borchert, Le and Ritchie, (2017) argued that there are major worries among students
whether they have to pay higher fees rather than EU rates and also on travelling to and from UK
for studying purpose in effective manner. On the other hand, there will be restrictions on the
visas restricting them to travel easily. The students' mobility between the Rest of Europe and UK
expecting to be reduced dramatically because of main factor i.e. increment in tuition fees and
complex visa regulations. Furthermore, there will be decreased opportunities for accessing work
and health care opportunities. This impacts financial consequences for higher education market
of UK as colleges have already made cleared for reducing diversity of campuses for studying
opportunities in and around students from Europe and UK. This will result into lower diversity
and lesser level of income to universities.
Theoretical Analysis- Brexit and its influence on international students
There are number of students who visits UK in order to gain quality education in the best
way possible. International students' comes from various countries which makes UK as the
largest education market in the world (What does Brexit mean for international students in the
UK?. 2018). They arrive for quality education and also to explore work opportunities in wide
number of sectors after completing graduation and post-graduation. It can be analysed that UK,
since 1973 had been member of EU over the years. Politicians and citizens have gained a lot in
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these years but they have seen lot of dissatisfaction which overtakes the advantages. Popular vote
had been made in 2016 leading to British Exit (Brexit) from EU. The proceedings made by the
members clarifies that international students who come UK to attain higher educations may be
impacted.
Brexit Influence on international students
The first thought that come in mind is that Brexit will not have direct effect on students
coming into UK from any countries. It may be analysed that UK might agree to stay in European
market which clearly means that there will no discrimination between European students and
British students who come to study in UK (Minsky. 2016). In simple words, lower tuition fees
will be charged from European students like that of UK students. However, in 'hard scenario',
because of Brexit, it might be possible that European people may be treated as Non-European
international students resulting in higher fees (Study International Staff. 2018). This would also
be possible with regards to UK students being charged more for studying in Europe which will
have limited access to Europe market.
Affection by Brexit
It could be assessed that immediate effects of Brexit on European and international
students are small enough. Brexit would not ruin plans of students to study in UK (Kendal.
2018). It clearly means that if students come from Asia, Middle East, Africa or any other
countries, visa requirements and base for payment of tuition fees will be the same which are
being paid now. While, for a EU citizen, current treatment of people are same with those UK
people but is likely that situations would not remain cool as of now and will get worse. But it is
unclear what there might have effects in the future. The tuition fees are of great concern for the
students as only lower fees attract them to visit UK and acquire desired education of their
interest. Tuition fees will get increase if EU students will not be treated in same manner of
Britishers (Drake, 2017).
The economy of UK has played major role in carrying out strength of pound against other
currencies (Cambridge, 2017). It can be analysed soon after the British decided to exit from EU,
pound lost 15 % of its value against euros. It might happen that pound will lose its value faster
than institutions can adjust their respective fees in the UK making it better for studying at least in
short-run. On the other hand, applying and limiting visa has been another reason affecting UK at
least to some extent. All international students being welcome in the UK but laws and policies
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are being handled by government related to visa and current administration is also reliant on
restricting visa and student immigration. This rigid policy have already shifted many students to
opt for other countries which offers English-language courses (Wihlborg and Robson, 2018).
The Brexit has other unforeseeable events which might have multiple effects on the
students coming from various countries but major impact will be seen on European students up
to a major extent. The researchers, academicians and professors from EU will be forced to leave
UK or they will leave on their own. This will have bad consequences on UK because
immigration laws might get strict and they will not get entry in UK (Daddow, 2017). There will
be worries about people for UK and many elite positions will remain vacant. Moreover,
universities in the UK relies on billions of euros for funding in research which are provided via
EU. It can be seen in future students from countries should seek information listed in websites
relating to immigration and visa requirement for attaining clarification for them before enrolling
in UK (Golding, 2017).
Statistics of International students
UK has been the most visited hub for education among worldwide students. In
accordance to the London Economics report, international students contribute more than £22.6
billion to the UK for complete duration of their study. In relation to this, £5.1 billion produced by
EU students which counts for 4.43 %. The impact is certain that higher tuition fees will have to
be paid by EU students which are currently being paid by other nationals. This pretends not be
good idea as communicated by EU people as there will be no difference in between them and
other nations' students. On the other hand, it is likely that distress will culminate up to great
extent. It can be analysed that loss on EU and international students coming to UK could have
major impact in terms of financial for the universities in the UK.
By using conservative predictions of fees paid on an average by international students be
it undergraduate and post-graduate courses, it can be seen that there will be major impact on
country (Clarke, Goodwin and Whiteley, 2017). The students who are worried about their current
and future status should get familiar or attain information from the office for clarifying and
seeking advice. On the other hand, inquiry of London hopes for building Migration Advisory
Committee's investigation with relation to impact on Brexit on UK's labour market for
effectively mitigating effects of Brexit on international and domestic student’s community
(Galsworthy and McKee, 2017). It is further crucial for UK to make approach to welcoming
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students from worldwide. In relation to this, immigration system of UK has to re-establish itself
for attracting global students post-Brexit.
CONCLUSION
Hereby it can be concluded that Brexit has major influence on EU, UK and international
students. This is evident from the fact that relation of EU and UK will not be usual as it is now.
The tuition fees would rise and European students will have to pay higher fees which will be
same from other international students as well. Academicians, professors and researchers of EU
will be forced to leave UK which would have bad consequences on UK economy as it receives
funding from EU. On the other side, it is reflected and outcome generated from the report is that
influence of Brexit will have not large impact on international students as they already pay
higher fees for enrolment and tuition. While, European students will have to pay more fees and
as a result, they will drop plan to study in UK. However, major impact of Brexit in education
sector of UK is unforeseeable and will be clarified after the exit of British from EU.
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Exiting the EU: challenges and opportunities for higher education .2018 [Online] Available
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