The London lens is by Darren de Souza, Senior Policy and Projects Officer at London Higher
The new International Education Strategy (IES)’s ambitions clearly frame where cross-governmental priorities on international education lie: to drive growth and increase influence around the world. Given the government’s focus on growth, this iteration of the IES is also welcome news for London. Growth is a citywide priority, with a mayoral mission board established to oversee the delivery of the London Growth Plan.
International education is named as one of London’s four key strengths in the growth plan, characterised by being ‘globally competitive, a significant economic contributor, and highly productive’. The Mayor’s office has recognised the £12.5bn in economic impact that international students bring to the city annually, alongside longer-term talent pipeline effects: London Higher’s recent poll showed 91% of London business leaders view a global workforce as key to remaining competitive with major world players like New York, Singapore and Paris.
With its headline ambition to grow education exports to £40 billion by 2030 (up from £32 billion currently), higher education in London will play a critical role in the delivery of IES ambitions. Higher education accounts for 73% of all education-related exports, and London accounts for 30% of all UK exports. The concentration of world-leading institutions that are clustered with access to global talent and capital gives London a competitive advantage, and one that will drive export growth ambitions. London’s institutions educate 165,000 transnational education (TNE) students around the world, more than any other region in the UK. This includes students benefitting from distance learning provided by institutions like the University of London, as well as those studying at successful in-country campuses such as Middlesex University’s campuses in Dubai and Mauritius.
Alongside TNE, the IES identifies AI as a key growing sector that strategic government partnerships will look to support. London is a European leader and global hub for AI, with the technology also supporting other citywide priority sectors such as frontier innovation and life sciences. Reference to the government’s AI Opportunities action plan and the announcement of over £25 million in AI fellowships chime yet again with regional policy priorities to bolster London’s leadership in this space and ensure a steady flow of talent that will drive innovation in established and emerging industries. The broadening of the Innovation Founder visa route to allow students to establish businesses with more ease, post-graduation is also an attractive prospect for London, as the capital accounts for nearly 40% of the UK’s graduate entrepreneurial activity.
The strategy’s pivot to a diplomacy-led approach is magnified by the London lens. With the IES feeding into the government’s forthcoming soft power strategy, promotion of the UK as a trusted partner of choice for study, research partnerships and programmes (such as Horizon Europe), alumni networks and knowledge exchange is a further boost for London. The capital remains Europe’s top destination for both student experience and foreign direct investment, and this compelling overall offer makes London uniquely well-placed to work with key stakeholders to realise the IES’ ambitions.
The continued commitment to positioning the UK as a global leader in research and innovation, and to maintaining an inflow of talent and capital, is a welcome sign of policy coherence. The IES reinforces the 2025 Industrial Strategy’s emphasis on research and innovation as drivers of productivity and growth, which in turn supports the regional ambitions set out in the Growth Plan.
The new Education Sector Action Groups (ESAG), tasked with producing tailored action plans to increase export revenue, would benefit from looking to London. The capital is an undisputed global leader in services exports, with particular strengths in the creative industries and digital technologies. With the mayor setting out a vision to further leverage these regional assets for national benefit, an ESAG-led action plan that builds on London’s competitive advantages could help catalyse the economic growth the government is seeking.
In a crowded policy landscape, the IES’ echoing of government’s priorities across the piece provides growing clarity of direction. This should instil confidence that regional and national ambitions are complementary rather than competing. Driving growth, broadening opportunity, increasing influence and ensuring that we remain a globally attractive and competitive destination for study, work and investment are critical for the UK. With universities at the forefront, Team London is well placed to deliver on these ambitions.
