Downing Street has signalled that the Prime Minister is considering a major change in how the number of immigrants coming to the UK is recorded.
A spokesperson said that Theresa May and her ministers are looking at whether foreign students should be removed from overall net migration figures.
Until now she has doggedly opposed such a move, fearing it could be seen as a bid to fiddle statistics, but the No 10 spokesperson confirmed the matter is up for review.
It comes after Chancellor Philip Hammond indicated he thought students should not be counted in net migration figures at a Select Committee hearing in Westminster.
The issue threatens to become a flashpoint in the struggle within cabinet to determine the nature of the UK’s withdrawal from the European Union.
The Downing Street spokesperson said: “The issue of migration, migrant numbers, who enters the country and under what terms, is very much subject for review as we go through the process of exiting the European Union.
“Clearly the Home Office will take a leading role in that, but it is a cross-government effort to come up with a system that assures we have control of the numbers of migrants coming into the UK, but that we still continue to attract the brightest and the best migrants into the UK.”
Asked specifically if the issue of foreign students being counted as immigrants is being reviewed, he said: “The whole issue of migration is subject to review, yes.”
As Home Secretary, Ms May fought and won a battle with the then-Chancellor George Osborne to keep the number of foreign students counted within net migration statistics.
At the Conservative conference earlier this month, her new Home Secretary Amber Rudd also announced a broad crackdown on immigration with student visas particularly targeted.
But many ministers and universities have consistently argued that students should not be classified as immigrants.
Speaking at a hearing of the Treasury Select Committee yesterday, Mr Hammond said it is essential that immigration controls are introduced in a way that “protects our economy”.
When asked if students should still be counted among immigrant numbers, he said: “My view is this is a question of public perception and the public’s view. Clearly immigration and the level of net migration is an issue of concern.
“The question we should be asking is, ‘what does the public understand should be included within that definition?’. It’s not whether politicians think one thing or another, it’s whether the public believe it.”
When committee chair Andrew Tyrie cited research showing only a fifth of people think students count as immigrants and that 59 per cent are opposed to efforts to reduce their number, Mr Hammond said: “I think that’s very interesting information.”
