The Welsh government has ruled out introducing a levy on international student fees as Westminster forges ahead with the policy.

Speaking in the Senedd, Welsh education secretary Lynne Neagle said the tax would not apply in Wales.

“We’re not seeking to moderate overseas student demand in this way and indeed we really welcome international students,” she said.

“We want our international students to continue to feel welcomed for the positive social and cultural and economic contributions they make in Wales, and we’re very keen to ensure that that continues so there will not be a levy in Wales.”

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The Labour government first mooted a 6 per cent levy on the fees international students pay earlier this year as a way of demonstrating the contribution that these students make to the UK.

Despite fierce opposition from universities, who say it will worsen their existing financial challenges and cost the sector £620 million per year, Labour announced in September that it would use the tax to fund maintenance grants for domestic students.

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The policy will apply only in England unless ministers in the devolved nations decide to adopt it.

Elwen Evans, chair of Universities Wales and vice-chancellor of the University of Wales Trinity Saint David, said the announcement was a “clear message” from the Welsh government that international students are welcome in the country.

“International students make a significant economic contribution to Wales as well as enriching our courses, campuses and communities.

“The introduction of a levy – effectively an additional tax– would have had detrimental impact on Welsh universities.

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“The levy would have increased the financial pressure the sector is under, affecting universities’ capacity to contribute to their local communities and potentially reducing the number of places available for Welsh and UK students.”

helen.packer@timeshighereducation.com