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The mooted levy on international student fees risks knocking down the UK higher education sector¡¯s fragile ¡°house of cards¡±, experts have warned.

When initially proposed, the government suggested a tax of 6 per cent on overseas tuition income could be passed on to students, but many institutions have since said they would likely have to absorb at least part of the cost themselves.

Caroline Baylon, pro vice-chancellor international at the University of Reading, said passing it on to students is possibly straightforward on paper, but more difficult in practice.

On top of the costs of visas and the health surcharge increasing, she told delegates at a Westminster Higher Education Forum policy conference the levy would add to the ¡°quadruple whammy of international students being seen as cash cows¡±.

¡°If you were an international student or a parent paying for these high costs, you¡¯d be wondering why all these things are being taxed and not actually going towards the education of your child.¡±

Many universities do not make a profit from international students and are already engaged in a ¡°race to the bottom¡± by discounting fees, so the levy would have a big impact on dwindling finances, Baylon said.

¡°If the levy is a tool for immigration reduction, I have no doubt it will work,¡± she said.

¡°If the levy is a tool for funding areas of the public sector, I¡¯m not sure it will because actually there won¡¯t be much coming out of the purses of universities because the numbers will decrease.¡±

Analysis has shown that the levy could leave some institutions with bills of more than ?20 million each per year.

Although some universities will be ¡°immune¡± to this, Baylon warned that this additional tax would be hard to absorb for many others.

Speaking at the same event, Shara Pledger, legal director of Pinsent Masons law firm, said the levy is a definite threat to sector finances and that universities are hugely concerned.

She said anything that impacts an institution¡¯s ability to earn international tuition income ¨C sponsor licensing, a compliance issue or student recruitment ¨C may upset the ¡°fragile¡± ecosystem.

¡°It¡¯s a real concern because it does very much for some institutions feel like a house of cards and it¡¯s one very gentle blow and everything will come tumbling down.¡±

Vincenzo Raimo, an independent international higher education consultant and visiting fellow at the University of Reading, said the idea that all universities will simply be able to add this levy on to international tuition fees is a ¡°fantasy¡±.

¡°For some universities, having to find that levy from somewhere will just mean that international student recruitment stops being a viable activity. ?

¡°The challenge for those institutions that then can¡¯t recruit more domestic students is what happens next, and the answer I think is quite simple:?that some activities will have to stop, or worse.¡±

The government has said it is currently exploring the idea and will share more details in November¡¯s autumn budget.?

patrick.jack@timeshighereducation.com