International graduates remaining in UK for work contribute £3.2bn in tax, analysis finds'It is an absolute tragedy that the UKhas failedto keep up withother countries'In November, university bosses admitted that a continued rise in the number of top degrees could undermine confidence in the value of a degree, making them less useful for students(Rex)Just one year group of internationalgraduateswho stayed in the UK to work after their studies contributed £3.2bn in tax, new analysis has suggested.International graduates who find employment in the UK typically do so in sectors that suffer from acute skills shortages, the Higher Education Policy Institute (HEPI) think tank found.The analysis comes after the Migration Advisory Committee (MAC) - a non-departmental public body associated with the Home Office -failed to recommend a post-study work visa schemeas it said a “proper evaluation” of foreign students who stay and work in UK was needed.The joint report, with Kaplan International Pathways, a specialist service for international students, found that international graduates plug skills shortages rather than displace domestic graduates.Graduates from otherEuropean Union(EU) countries who stay in the UK to work contribute £1.2bn and graduates from the rest of the world contribute £2bn in tax and National Insurance payments, the report states.The study only looks at internationalstudentswho started at UK universities in 2016-17.Researchers argue that the economic contribution would be even higher if restrictions on post-study work had not been introduced in 2012. These limits have cost the Treasury £150m a year, the report says.“Universities firmly believe the government’s biggest mistake in higher education has been to discourage international students from coming here. A hostile environment has been in place for nearly a decade," said Nick Hillman, director of HEPI. “It is a testament to the strengths of our higher education sector that the number of international students has not fallen, but it is an absolute tragedy that we have been unable to keep up with the pace of growth in other countries.”Last year, the MAC claimed there was still “a lack of evidence” to show international students who stay in the UK to work make a positive contribution, Mr Hillman added.“We can now disprove this too. Just one cohort of international students who stay in the UK to work contribute over £3bn to the UK Exchequer – and it would be even more if policymakers had not reduced post-study work rights in 2012,” he said. “A new approach is overdue.”University leaders have beencalling for a new visathat allows international studenIn 2012, the government scrapped the post-study visa - which allowed international students to work in the UK for two years after finishing university - as part of a crackdown on abuse.International students in the UK have just four months following the end of their studies to find a job with a tier 2 sponsor. The number of oversea