A drop in the number of international students coming to the UK cost the country nearly £3 billion, according to new estimates.

The total benefit of those who began their studies in the 2024-25 academic year has been estimated at £45.1 billion, the data produced by consultancy London Economics show.

The same cohort, numbering 685,565 students, will cost the public purse just £4.7 billion to host because of extra spending on things such as healthcare or public safety – resulting in a benefit-to-cost ratio of 9.7 to 1.

Economists crunched the numbers as part of research conducted for the ����Vlog Policy Institute (Hepi) and Kaplan International Pathways. It comes as international students continue to face political pressure after numerous rule changes over the past few years.

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Although the boost applies across all parts of the UK, some constituencies fare particularly well, according to the analysis.

Top is outgoing prime minister Keir Starmer’s seat of Holborn and St Pancras, which has an 11,530-strong international student population that generated more than £1 billion for the UK.

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Likely future prime minister Andy Burnham’s new Makerfield constituency fares considerably worse but still enjoys a £4 million boost. Clacton – the seat where Nigel Farage will soon contest a by-election having resigned as its MP – has a net economic impact from international students of £2.1 million.

Rose Stephenson, director of policy and strategy at Hepi, said the findings were an important intervention in the ongoing conversation around immigration.

She said: “Immigration is a top concern for voters in Britain, and it is important that the debate around immigration policy is informed by evidence.”

Stephenson added: “If ministers decide to further reduce international student numbers, they should be clear that there will be economic costs as well as potential political benefits. At a time when the UK is seeking stronger economic growth, those trade-offs deserve an honest and open discussion.”

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The study assessed “economic impact” in terms of tuition fee income, the money the students will spend on living costs, and spending by friends and family who come to visit them in the UK.

In 2024-25 the number of first-year international students more than doubled since 2006-07 but declined “substantially” since its post-pandemic peak in 2022-23, decreasing by roughly 54,500 students (12 per cent) over the past two academic years as a result of changes in immigration policy, including restrictions on dependent visas.

Analysts found that if the 2022-23 student numbers had been sustained in 2024-25, the net impact would have been approximately £2.9 billion higher.

“In a period when policymakers are rightly focused on growth, productivity, and regional prosperity, this finding deserves careful consideration,” the report notes.

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London Economics’ research estimates that the net economic impact per student was circa £100,000 – in other words, the report continues, “every 10 international students generate £1 million worth of net economic impact for the UK economy over the duration of their studies”.

Maike Halterbeck, partner at London Economics, said: “This new report provides updated evidence on the substantial economic value that international students bring to the UK economy – value that is spread widely across the country. However, it also demonstrates what the economy stands to lose if and when this major export sector starts to decline.”

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georgia.luckhurst@timeshighereducation.com