By Fatma Younis
The UK government is prepared to spend up to £450 million a year to allow EU students to pay the same university fees as British students, but only if the European Union grants Britain access to its Made in Europe industrial programme, officials have said.
Student fees concession tied to industrial scheme
Ministers have drawn up plans to discount fees for students arriving from the continent, compensating universities for lost income. However, British officials insist the concession depends on the EU allowing UK entry to the proposed protectionist scheme, which would impose trade restrictions on non‑members.
Negotiations ahead of November summit
The two sides aim to finalise a series of deals at a Brussels summit on 20 November. Prime Minister Andy Burnham wants the meeting to demonstrate closer ties with the EU, including options for future re‑entry. Former chancellor Rachel Reeves, in a speech at Harvard, will argue that Britain’s economic interests and geography point toward Europe.
Cost estimates and domestic concerns
Treasury modelling suggests the policy could cost up to £450 million annually under a high‑demand scenario, though other estimates put the figure lower. The move could prove controversial domestically, as many UK graduates are calling for changes to their own student loan repayments.
Industrial scheme access and tariff alignment
The UK was initially excluded from the Made in Europe definition, prompting warnings from the government and car industry. France recently shifted its position, proposing British manufacturers could join if the UK accepts “dynamic alignment” on EU tariffs, which could conflict with Britain’s lower tariffs on Chinese electric vehicles.
Database access and migration cooperation
Negotiators are also close to agreeing UK access to EU biometric databases such as Eurodac, which holds asylum seekers’ fingerprints, and the Schengen Information System II for law‑enforcement alerts. These measures aim to strengthen efforts to end small‑boat crossings in the Channel.
