Graduates from selected UK universities will now be permitted to stay on two-year visas under updated Government plans.

The post-study visa will be extended from 18 months to two years for eligible institutions with "strong labour market outcomes", according to the Budget document.

This follows announcements made by the Labour Government in May last year to reduce the length of the visa, which permits graduates to stay and work in the UK after completing their course, from two years to 18 months.

Before the amendment comes into force in January, officials stated that students from some "high-compliance universities where there are strong labour market outcomes" can remain for up to two years.

The document, published after the Chancellor’s Budget speech to the Commons on Wednesday, sets out the policy as part of efforts to ensure the immigration system “supports a dynamic labour market”.

The document also outlined an expansion of the "high potential individual" visa route to cover the top 150 global…