Class 4 National Insurance Contributions

Lord Bilimoria Excerpts

Wednesday 15th March 2017 Lords Chamber

[Lord Young of Cookham]

My noble friend gives some wise advice on the number of commitments in the manifesto. I think that we had 600 in our last manifesto, and I am sure that there are lessons to be learned. But I cannot agree with him that we should ditch our manifesto commitments. Confidence in the political system is not that high and if any party, once elected, were to break its manifesto commitments along the lines that my noble friend has suggested, it would not enhance confidence in the political system at all. So we have to stick within the commitments that we made and find other ways in which to reduce the deficit.

[Lord Bilimoria (CB)]

Although I welcome the fact that the Government have backed down on this, the reason given very clearly is on the spirit of a manifesto commitment not being broken. Well, the biggest manifesto commitment that has been broken is remaining in the single market. Are the Government now going to back-track on that? We shall wait and see.

The main reason why people—and when I say people I mean Members across the parties in another place and here—objected to this increase in national insurance contributions for self-employed people affecting more than 2.5 million people is because the perception that it sends out is that the Government are going after and hitting the very people who take the risk to be self-employed and going against encouraging entrepreneurship. Would the Minister agree that the main role of government in this area is to encourage entrepreneurship, which means encouraging job creation, tax takes and growth, which will help to get rid of the deficit—not by hurting the very people who will create that growth?

[Lord Young of Cookham]

The noble Lord will know that we have taken a number of measures to promote enterprise. We have reduced corporation tax and we are investing in infrastructure and broadband. I do not want to reopen a discussion that we have had for the last two or three weeks about the single market and Brexit, but what has happened is that there was an announcement last week and there were then discussions with parliamentary colleagues and others. Against the background of those discussions, the Government have decided not to proceed. This is not an unparalleled development in the political system. It is a measured and proportionate response to some very real reactions that we got from colleagues down the other end.

Higher Education and Research Bill

Lord Bilimoria Excerpts

Report: 3rd sitting (Hansard): House of Lords
Monday 13th March 2017 Lords Chamber

[Lord Bilimoria (CB)]

My Lords, I declare my interest as a former international student and the third generation of my family in India to be educated in this country. I am chair of the advisory board of the Cambridge Judge Business School, which has just been ranked No. 5 in the FT global MBA rankings. As the noble Lord, Lord Holmes, said, our universities are the best in the world along with those of the United States of America.

I wholeheartedly support the amendment in the name of the noble Lord, Lord Hannay. I am sorry that the noble Lord, Lord Patten, is not with us. The amendment refers to more than international students and talks about competition from other countries in terms of collaboration as well. That point should not be missed. I have made the point many times that at the University of Birmingham, where I am proud to be chancellor, when we carry out collaborative research with a university such as Harvard—I am proud to be an alumnus of the Harvard Business School—it has three times the impact of our individual research. Therefore, it is essential that we do that, particularly given the European Union referendum and the potential of Brexit coming up.

There are accusations that international students overstay. Can the Minister confirm that a Home Office report has shown that only 1% to 1.5% of international students overstay? If he will not answer that question, will he say why the Government continually refuse to put in visible exit checks at our borders? If we scanned the passport—EU and non-EU—of every person coming into this country, and the passport of every person—EU and non-EU—going out of this country, we would know who was coming in and who was going out, particularly with regard to international students. I urge the Minister to say why the Government are not doing this.

As the noble Lord, Lord Hannay, said, the global environment is one in which the international student demand from countries such as India is increasing by 8% year on year. We have no target to increase the number of international students. This amendment very clearly says that the Government need to make that a priority. I go further and say that there should be a target. Countries such as France, for example, have a specific target to double the number of students from India by 2020. As the noble Lord, Lord Hannay, said, the number of Indian students went up to nearly 40,000 around 2010. It has now dropped by over 50%. Canada, the United States and Australia all have programmes to increase the number of international students. In fact, Australia has a Minister for international students. Last year in India, the Australian high commissioner said to me, “Thank you for your immigration policy on international students. You’re sending them to us instead”. That is ridiculous.

We now face competition from European Union countries. Non-English speaking countries such as Germany, Sweden and the Netherlands—I have already mentioned France—are incentivising international students. Why cannot we accept this amendment once and for all to make international students a priority? Given the backdrop of Brexit, that is even more important. A survey last year said that 82% of EU students and 35% of non-EU students reported that they would find the UK less attractive as a result of Brexit. This means that some 50,000 EU students and 63,000 non-EU students could be at risk. The proof of the pudding comes from the latest indication that fewer EU students have applied to start university courses in the UK. According to UCAS, there was a 9% fall in the number who had applied for courses. At Cambridge, we know that the figure has dropped by 14%.

I am also president of UKCISA, the UK Council for International Student Affairs, which represents the 450,000 international students in this country, of whom 130,000 are from the EU. UKCISA’s response to the EU referendum result was very clear. It said that it sends,

“worrying signals to thousands of EU (and indeed British students hoping to participate in EU mobility programmes) but given the government’s relentless pressure to cut net migration (including curbs on international students) it is … not surprising that this has been the result”.

I am co-chair, along with Paul Blomfield in the House of Commons, of the All-Party Parliamentary Group on International Students. Our purpose is to recognise the global prominence of UK education, to promote the value of international students, to promote, as the noble Lord, Lord Holmes, said, the soft power of international students, to raise awareness of issues that affect international students and, in reference to the amendment of my noble friend Lord Hannay, to provide a platform for collaboration.

Before I conclude, perhaps I may give a specific example. Following the Committee stage, last week at the University of Birmingham I chaired the annual meeting of our annual court, at which we highlighted that not only one-third of our academics, of whom 18% are from the EU, but a quarter of our students, including from the EU, are international. We have just released an independently prepared impact report on our university. It highlights that:

“Eight additional international undergraduate students would add £1m to the economy”.


That is what we are talking about. It is economic illiteracy not to promote international students and to send out signals that they are not welcome here. At Birmingham, according to this impact report, our international students contribute £160 million to the economy, and they are advocates and ambassadors for Birmingham. They are also ambassadors for the UK around the world, as the noble Lord, Lord Holmes, said.

Just last week—again, since Committee—UUK released a report on international students. It said:

“International students are vital for a successful post-Brexit, industrial strategy fit for a global Britain”.


It also spoke about the element of soft power. At any one time there are 30 world leaders who have been educated at British universities. The report also—this point has not been made so far—spoke about a ComRes public opinion poll for Universities UK which suggests that the public do not view students as immigrants. It said:

“Only 23% of Remain voters and 25% of Leave voters view international students as immigrants. Of those that expressed a view, 75% say they would like to see the same number, or more, of international students in the UK. Of those who expressed a view, 71% would support a policy to help boost growth by increasing overseas students. This polling suggests that current visa policy is not addressing public concerns”.


I would go one step further: this poll suggests that the Government are entirely out of line with public opinion when it comes to international students. I need only mention the current, and first Indian, president of the Royal Society, Sir Venki Ramakrishnan—Nobel laureate and fellow of Trinity College, Cambridge.

Universities UK does not argue that students in the UK should not be counted. I do not think that anyone here is saying that; we are saying that they should not be included in a net migration target. Our direct competitors categorise international students as temporary citizens. In the United States they are classified as non-immigrants alongside tourists, business visitors and those in cultural exchange programmes. In Australia they are classified as temporary migrants alongside tourists and visitors, and in Canada they are classified as temporary residents. These are our direct competitors. If they can do it, why cannot we?

Every time this issue has been brought up in this House, there has been unanimous cross-party support for taking international students out of the net migration figures, but the Government are not listening, the Prime Minister is not listening and the Home Office is not listening. So what option do we have? The only option is legislation and I urge noble Lords to support this amendment. Net migration figures create a perception that has unfortunately become reality in putting off international students. They must be a priority for our universities, for our economy, for our position in the world, for our domestic students and, more importantly with this uncertain future, for our whole country.

[The Earl of Dundee (Con)]

My Lords, as has been said, Amendment 150 would serve to redress a number of unsatisfactory outcomes. These already threaten to undermine our economic competitiveness, skills, trade, exports; then soft power deriving around the world from our usual reputation for welcome and fair-mindedness. However, adjusting, through this amendment, is perhaps all the more fitting, remaining as we do within the Council of Europe of 47 states, within which affiliation, through good practice such as this amendment promotes, we can therefore continue to assist balance, democracy and common sense.

Higher Education and Research Bill

Lord Bilimoria Excerpts

Report stage (Hansard - continued): House of Lords
Monday 6th March 2017 Lords Chamber

[Baroness Wolf of Dulwich]

My Lords, I support the amendments to which I have put my name and agree with everything that both noble Lords have said so far.

When the Higher Education and Research Bill was first introduced, both Ministers pointed out that the environment in which higher education takes place has changed dramatically in recent years, and indeed it has. Very large numbers of students now take out large loans in the belief, and with the confidence, that the institutions they attend have in some sense been guaranteed by government—that what they are doing is safe in that they will be able to complete their studies. Fortunately, in most cases that is true, but of course it is not always or necessarily true. Anybody who looks at the experience in other countries will realise that institutions do fail, and indeed some of our non-degree-awarding institutions have failed in the past. The Competition and Markets Authority says cheerfully on its website that the sign of a healthy sector is that some exit occurs. Exit sounds quite cool—unless you happen to be one of the students in an exiting institution.

At the same time as this Bill is going through, the Technical and Further Education Bill is being debated, mostly in the Moses Room. As I attend the sittings of both Bills, part of the time I whinge but mostly it is a very informative exercise because we now have a tertiary sector as much as anything else. However, the protections being introduced for students in further education colleges go well beyond anything that has been specified for students in higher education, and that is highly regrettable. It is really important that in this new and changed environment, we realise that students need new and changed protection.

To give an example, for a long time the training sector has had many quite small, and sometimes quite large, rapidly changing institutions. Just before these Bills were introduced in the House, we heard the first story of a training provider that went into liquidation, leaving many people with outstanding loans and no obvious recourse. In the few weeks that both Bills have started to work their way through the House, there have been two other such failures. I shall be happy to give their names to anyone who is curious to know them, but, once again, we are left with, in this case, adult learners who have loans but no ongoing course.

When I raised this issue with the Minister and officials, I was told that the risks were lower for university students because they were more mobile and less local. However, that really is not true. It is not true of my own, but it is true of many of our university institutions that they have home students who are almost all highly local—often because they come from less advantaged families and are very unhappy about taking out major maintenance loans. So they are very local, and if their institution fails, they do not have anywhere else to go.

I hope very much that Ministers feel able, ideally, to accept Amendment 57, which seems to me the least that we can do in an environment where we are, in effect, making a promise to students. If it turns out that, for good reasons, that promise cannot be kept, they ought to be looked after.

[Lord Bilimoria (CB)]

My Lords, I have spoken before in this context as chancellor of the University of Birmingham, chair of the advisory board of the Cambridge Judge Business School and an alumnus of Harvard Business School. However, years ago, when I was qualifying as a chartered accountant with the Institute of Chartered Accountants in England and Wales, I spent a year at what is now the London Metropolitan University, where I would later spend time as a visiting professor. I want to draw an analogy. In 2012, the London Metropolitan University lost its right to recruit international students. At that time there were 2,700 international students with valid visas, who had come here in good faith. They were given 60 days to find a place at another institution. That not only jeopardised their lives and futures but jeopardised and placed in crisis an institution with 30,000 students and 2,000 staff. That has implications for not only the institution but international students—as I know as the president of UKCISA, the UK Council for International Student Affairs.

Today, Universities UK has released a report showing that there are almost 450,000 students in the UK, of which almost 130,000 are from the European Union. The contribution they make to the British economy in gross terms—what they spend directly and indirectly— is £25 billion. With Brexit coming up, the uncertainty for international students, let alone EU students, is already there. It is not right that they have the added uncertainty that if, for whatever reason, the institution they join fails, they will be left high and dry. It will affect our economy and our ability to recruit international students. As it is, we have immigration rules that are against international students, which we will talk about later on Report.

I urge the Government to take this measure very seriously. It will give security to our domestic students and it is important for our international students and our reputation around the world.

[Lord Storey (LD)]

My Lords, I did not intend to speak on this issue but I want briefly to say something very important. If any of us had children who we sent off to higher education, we would expect that institution to give them the support and development they needed. There are private colleges that have their courses validated by individual universities. Of course, those private colleges could, under certain circumstances, get into difficulties and cease trading. What happens then to the students and to their student loans? As the noble Baroness, Lady Wolf, rightly said, we are seeing this already in further education, where training providers are going into liquidation. They are all right—they have gone into liquidation—but the poor student is left high and dry. I hope that when the Minister replies he might give assurances on this matter.