UK business schools are seeing fewer international students following changes to the country's visa rules, with overseas enrolments down 18 per cent from their peak in the 2022/23 academic year. The decline could cost the UK economy an estimated £2.1 billion, while universities and other higher education providers are already dealing with lower tuition fee income.
A report by London Economics, prepared for the Chartered Association of Business Schools (Chartered ABS), found that the fall in international admissions has cost higher education providers an estimated £600 million so far. The wider economic impact is equivalent to around 32,300 jobs, The Economic Times reported.
The report points to changes in student visa rules as a major reason for the decline. Restrictions introduced in 2024 prevent most international students from bringing family members to the UK as dependants, making the country a less attractive option for some prospective students.
Business and management courses remain the most popular subject area among international students in the UK, accounting for around one in three overseas enrolments. About 148,500 international students enrolled in these programmes in 2024/25. Their presence generated an estimated £16.8 billion in gross economic benefits, or £15.3 billion after accounting for the cost of public services.
The decline comes at a difficult time for UK universities, with nearly half of higher education providers reportedly running budget deficits. Many institutions depend on higher fees paid by international students to support their finances.
The report also warned that the situation could worsen. If international enrolments at business schools fall by a further 11 per cent between 2024/25 and 2029/30, the UK could lose another £1.7 billion in net economic contributions, with around 12,100 jobs at risk, ET reported.
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Education industry representatives have urged the UK government to address the challenges facing international recruitment, warning that declining enrolments could affect universities, local economies and the country's ambition to generate £40 billion in education exports.
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