British negotiators were blindsided by a Brussels demand to make EU students eligible for ‘home’ tuition rates — a move London officials warn could cost UK universities about £140 million annually. EU officials are tying the cut to a youth mobility agreement; they argue European students should not pay international rates that can exceed £60,000 a year. Universities and finance officers say an abrupt shift would force program cuts, higher domestic fees, or deeper reliance on international postgraduate recruitment. The dispute pits the UK government, led by Prime Minister Keir Starmer’s EU-reset agenda, against EU negotiators and could reshape cross-border recruitment, scholarship budgeting, and fee-setting rules for European students.