The majority of constituencies likely to take the biggest economic hit from the UK¡¯s proposed levy on international student fees are held by Labour, a new analysis has found.

In a second report on the potential impact of the proposed six per cent tax on universities¡¯ overseas earnings, consultancy firm Public First estimate the overall cost to the UK economy at ?1.8 billion in a single year.

The study, commissioned by a group of leading universities, looks at the likelihood that the UK will lose the ¡°gross value added¡± by international students as well as the money they pay directly in fees.

Public First has previously projected a loss of more than 16,000 international students in the first year - and 77,000 cumulatively in the first five years - if universities were to pass on the cost of the levy in the form of higher fees.

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Nine of 12 UK regions would lose over ?100 million each if this was the case, the study estimates. But the impact would not be felt evenly, given international students ¡°tend to be concentrated in certain areas, usually around one, or several, large universities¡±.

London would see the biggest impact and lose ?480 million, Scotland is the next hardest hit with a loss of ?197 million although the government has previously said the policy would apply in England only.

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The other most affected regions include the south east of England (?163 million), the West Midlands (?141 million) and north west England (?139 million).

A constituency-by-constituency breakdown also shows the uneven impact of the proposed policy.

Prime minister Keir Starmer¡¯s Holborn and St Pancras seat is top of those most affected with a ?72 million loss. The most affected constituency outside of London is Coventry South, held by Zarah Sultana, formerly a Labour member who now sits as an independent and is in the process of setting up her own left-wing party with former Labour leader Jeremy Corbyn.

In total, 37 of the top 50 most impacted constituencies are currently seats held by Labour MPs.

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Backbench Labour MPs are already known to have expressed concerns to ministers about the potential impact of the levy. It was also criticised earlier this year by Labour Mayor of London Sadiq Khan. The government has promised to release more details before the autumn budget at the end of November.

Commenting on the findings, Natasha Chell, partner at Laura Devine Immigration, said: ¡°The proposed levy risks sending a damaging signal to prospective international students at a time when the UK is actively competing to attract global talent. The levy flies in the face of the government¡¯s objective to attract the brightest and best talent,?while overlooking the vital contribution international students make to the economy and to the UK¡¯s skills pipeline ¨C including in shortage occupations.

¡°At a moment when long-term immigration and labour market strategies depend on a steady inflow of skilled individuals, introducing a levy is not only disappointing but potentially harmful to one of the UK¡¯s most successful export industries.¡±

tom.williams@timeshighereducation.com