Prime Minister Andy Burnham is considering a proposal to allocate £450 million annually towards subsidizing tuition fees for European Union students at UK universities. This move is part of a broader strategy to re-evaluate the UK's post-Brexit relationship with the EU.
Sources suggest that Burnham's government is prepared to make this financial commitment in exchange for allowing British companies to participate in the EU's 'Made in Europe' program. This initiative prioritizes European firms for public contracts and subsidies, and the UK is particularly keen to include its automotive and manufacturing sectors.
A youth mobility scheme, potentially allowing up to 80,000 EU students and young adult workers to come to Britain annually, is also reportedly part of the proposed package. The proposals are expected to be discussed at a summit in Brussels on November 20.
The potential subsidy for EU students' tuition fees may prove controversial, especially at a time when domestic students are expressing concerns about their own tuition costs and student loan burdens.
The Prime Minister's approach to potentially deepening ties with the EU has also highlighted divisions within the Labour party. Former Chancellor Rachel Reeves has publicly supported the Prime Minister's stance, stating that Brexit has adversely affected the UK's economic standing and security. This contrasts with a more Eurosceptic position recently expressed by her successor, John Healey.
"We are willing to give the Europeans what they want on fees, but we will have to get something significant in return," a source told The Guardian. "The biggest prize we are pushing for right now is access to Made in Europe, so there is a deal to be done there."
Burnham aims to secure agreements on food and drink, emissions trading, and the youth mobility scheme during the upcoming summit. However, he has indicated to ministers that the period following the summit will be dedicated to exploring longer-term relationship options.
Any significant changes to post-Brexit arrangements will ultimately be subject to public decision and are expected to be addressed by the next parliament, according to a letter from Burnham to his Cabinet. He cautioned ministers against advocating for specific outcomes or speculating on the process's results.
Reeves, who previously served as Chancellor, expressed pride in the strengthening relationship with the EU and stated, "Brexit has made us poorer, weaker and less secure." She added that while "Britain's future lies in the European Union," proponents must build a case demonstrating tangible benefits for any re-entry into the bloc.