In February 2025, five years after the UK formally left the EU, Sir Keir Starmer became the first UK Prime Minister since Brexit to head to Brussels to join a meeting of EU leaders. The trip was packaged as part of a “reset” in relations between the UK and the EU, albeit caveated with promises that the UK government is not seeking to re-join the EU’s single market or customs union, nor sign up to the principle of freedom of movement.
With President Donald Trump back in the White House and war ongoing in Ukraine, closer cooperation between the UK and EU in areas of security and defence will be vital to maintain pressure on Russia and bring about peace on the continent. Enhancing trade between the UK and EU will also be a key ambition shared by both parties, given the looming threat of American tariffs and the need to secure economic growth.
Youth mobility
The process of resetting the UK-EU relationship by the spring is one to watch for the UK’s higher education sector. This is because, while the EU has the power to ease restrictions on UK businesses to improve British trade prospects, the UK also has something that many in the EU want in return: namely the power to reinstate a youth mobility scheme between the UK and the EU.
At its most ambitious, such a scheme could allow young people from the UK and Europe the freedom to travel across countries to study and work as was the norm before Brexit. A curtailed version could at least see mobility enacted for shorter, time-limited placements. Either way, UK universities could find themselves becoming an important bargaining chip in any future renegotiations.
Bargaining power
Given the demand for a return of youth mobility is greater in the EU-27 than it is in Britain, UK ministers understandably remain cautious about giving the green light to this idea too soon. The recent gains of the populist Reform UK party in public popularity polls will likely also enhance this nervousness. Moreover, with the policy in clear breach of the UK Government’s own ‘red line’ on freedom of movement, British officials are playing down the prospect of any return to youth mobility between the two powers.
UK universities could find themselves becoming an important bargaining chip in any future renegotiations
Yet, as anybody who has ever been involved in some sort of negotiation knows, the key to a good outcome is not showing your own hand too early in the process. Doing so may significantly weaken your bargaining power and ability to leverage the situation in your own favour. The possibility of the UK offering a youth mobility concession to European leaders to secure more lucrative trading conditions and pump-prime economic growth may not, therefore, be completely off the table.
Risky business
In the past, the UK higher education sector would have been first to welcome the return to Britain of a youth mobility scheme such as Erasmus+. However, the current financial troubles facing the sector are likely to dampen university managers’ enthusiasm for any measures that would see EU students once again regarded as ‘home’ students, thereby capping the fees they pay.
The introduction of youth mobility measures would provide a welcome boost to the diversity of UK student populations by making it easier for those from less privileged backgrounds in Europe to study in Britain. However, with universities now focusing on their bottom line rather than the size and shape of their student intakes, any concessions that could reduce the revenue-generating potential of EU students could destabilise universities’ finances at a time when every penny counts.
Balancing act
The big question facing the higher education sector, then, is whether there is a proposal the UK government could make involving UK-EU student mobility that reconciles universities’ search for greater diversity on campus and enhanced prospects for their students with their need for extra income.
As it stands, the future of UK and EU students rests in the back pocket of the UK Prime Minister. Whether he pulls a student mobility scheme out as a trump card to get a beneficial deal for the British economy depends on the messages UK universities send to ministers and officials over the coming months.
Not enough noise about potential changes to the status of EU students could leave universities exposed without a financial compensation package from Treasury to cover any headline fee changes that a new youth mobility programme would incur. Yet, too much noise would also risk negative headlines around the world that international students are nothing more than lucrative cash flows for hard-up institutions.
The political reset ahead represents a balancing act for UK higher education. The key is whether we can find a solution that opens up UK universities and their students’ prospects further to the outside world while stabilising them financially so they can continue to transform lives for generations to come.
