Keir Starmer is considering cutting university fees for European students as part of a broader package designed to deepen Britain’s economic ties with the EU, in what could become one of the most politically sensitive concessions of his post-Brexit reset.
Ministers are weighing whether to lower tuition costs for EU students attending British universities as negotiations with Brussels enter a critical phase ahead of a planned UK-EU summit next month.
The proposal forms part of a wider push by Starmer’s government to secure access for British companies to future European industrial and procurement programmes, including initiatives designed to protect ‘Made in Europe’ supply chains from growing competition from China and the US.
Business Secretary Peter Kyle said: “We do understand the importance of it to the EU and that’s why we are engaging with it in such an enthusiastic way”.
The move would represent a significant shift from the UK’s position since Brexit, when EU students lost access to domestic tuition fee rates and began paying international fees that can exceed £30,000 a year for some courses.
European officials argue the change has contributed to a sharp fall in student numbers, with the proportion of EU students at British universities dropping from around 27 per cent before Brexit to just five per cent.
Universities warn of funding hit
The idea is likely to alarm university leaders already grappling with severe financial pressures.
British universities rely heavily on international student fees to offset losses incurred from domestic students, whose tuition fees have been capped for years despite rising costs.
While UK students currently pay £9,535 annually, international students often pay several times that amount.
Under one compromise proposal discussed in Brussels, European students would pay the average cost of delivering a course rather than full international fees. Universities fear that could leave substantial funding gaps, particularly for science, engineering and medical degrees.
Analysis by higher education consultancy Campus Numerics previously suggested restoring home-fee status for EU students could cost the sector around £140m in the first year alone.
Jamie Arrowsmith, director of Universities UK International, has warned that any such move would risk undermining the financial sustainability of universities unless accompanied by government compensation.
The tuition fee debate has become one of the most contentious elements of Starmer’s EU negotiations.
British officials had previously described reduced fees as a “non-starter”, arguing the issue was not part of the original framework for talks. However, ministers now appear increasingly willing to consider concessions as they pursue broader economic gains.
Alongside discussions on student fees, Britain is seeking participation in European industrial schemes covering sectors such as automotive manufacturing, clean technology and advanced energy infrastructure.
The government also hopes to secure agreements on food and agricultural trade, energy co-operation and a youth mobility programme.
