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Newcastle's Economy Could Be Harmed by Brexit

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

A report by the Higher Education Policy Institute (HEPI) suggests international students contribute nearly £700m to the North-East economy each year, supporting hundreds of jobs and businesses.

There are concerns both Brexit and Government's efforts to reduce immigration numbers could harm the British economy.

Newcastle's economy could be particularly damaged due to tougher immigration rules, with the city benefiting to the tune of £300m due to international students.

Commenting on the report, HEPI director Nick Hillman said: "Fewer international students would mean a lot fewer jobs in all areas of the UK, because international students spend money in their universities, in their local economies, and on products that are manufactured across the UK.

"It is literally the sandwich shops, the bike shops, the taxi firms, it is the nightclubs, it's the bookshops. Almost every part of the British economy benefits from having international students."

The report has been supported by the North-East England Chamber of Commerce, which also highlighted the long-term benefits from bringing overseas students to the region.

On average a typical EU student is estimated to generate a net gain of £87,000 for the UK economy over the course of their studies, while a non-EU international student generates around £102,000.

Outside of Newcastle, Durham was said to benefit £112.6m from overseas students while the three Sunderland constituencies received almost £100m.