That's working under the assumption that stupid foreigners are somehow buying their way into our universities. As someone that's hoping to apply to some American universities I can assure you it doesn't work that way. Universities trade on their academic reputation. If they started diluting that for the sake of a few quid they'd soon be out of business.
As a nation we're fighting a global battle for talent. You must appreciate that in many of the so called harder subjects such as maths, engineering, the sciences, even IT, we don't have enough native talent, so it must be imported. I believe around half of all PHD's in science and engineering in America are foreigners. Britain remains an attractive location for these talented people, but we can't rest on our laurels and not invest in our universities. They don't get money from alumni, there's no money to give them from the government. Students are the obvious (only) remaining source.
As a nation we're fighting a global battle for talent. You must appreciate that in many of the so called harder subjects such as maths, engineering, the sciences, even IT, we don't have enough native talent, so it must be imported. I believe around half of all PHD's in science and engineering in America are foreigners. Britain remains an attractive location for these talented people, but we can't rest on our laurels and not invest in our universities. They don't get money from alumni, there's no money to give them from the government. Students are the obvious (only) remaining source.