Scotland's edge in attracting "fresh talent" to turn around its declining population has been blunted by England adopting a similar visa scheme giving work permits to foreign graduates.

The offer to non-European Union citizens will be for two years, whereas England will have one year, and Scotland is to have a broader range of university and college courses eligible.

However, the Home Office has found its trial of offering work permits to foreign graduates at Scottish universities has worked well enough to extend it elsewhere.

Until now, it has only offered the work permits to science and engineering graduates from English universities, but is now extending the scheme to all other subject areas.

This is because the offer is an important part of attracting students in a competitive international recruitment marketplace, while helping to fill vacancies in high-skill job markets.

The Scottish Executive yesterday announced the extension of the Scottish version of the Fresh Talent regime, three years after it was introduced as the cornerstone of First Minister Jack McConnell's policy of addressing Scotland's demographic decline.

It has led to applications from more than 4300 students from 150 countries, and is now to extend beyond degrees to include postgraduate diploma and certificate courses.

Finance Minister Tom McCabe said: "Through studying here and having an additional two years leave to remain, students are experiencing all that Scotland offers as a place to work and live.

"Our information from a sample of graduates currently on the scheme shows that more than 90% of respondents rate Scotland as a very or fairly attractive place to live or study.

"This is the first set of responses from students. We will, of course, continue to evaluate and monitor the scheme to ensure its continued success."