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The Government’s proposed international student levy could mean a £1.8 billion loss to the economy in the first year alone, analysis has suggested.

A report by policy consultancy Public First has estimated nine out of 12 regions in the UK would face a wider loss of more than £100 million in the first year of a levy because of the likely loss in international students.

The impact would be largest in London, at £480 million, followed by Scotland (£197 million) and then the South East (£163 million).

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