UK business schools continue to be buffeted by hostile immigration policies, with some institutions noting two consecutive years of declining overseas enrolments, according to 2025/26 results from the 2025 Chartered Association of Business Schools (ABS) annual membership survey of 48 members.
But the picture seems to be improving. Almost half of the schools surveyed (46%) reported an increase in international enrolments, up from just 11% the previous year. At undergraduate level, 45% reported rising numbers, compared with 64% at postgraduate level.
Nevertheless, the association has pointed to policies affecting international students in the UK as continuing causes for concern for business schools as promises made in Keir Starmer’s immigration white paper become a reality.
While international enrolments at the undergraduate level were down on 2024/25 for 14% of respondents, this is far lower than the 39% who reported the same trend in 2024/25.
Similarly, while a sizeable chunk of respondents (39%) said overseas enrolments for postgraduate students were down year on year, this is still a noticeable improvement than over three quarters of respondents the year before.
But the Chartered ABS noted that international enrolments will still be lower than before 2024/25, with some schools reporting two years of decline in a row.
The Chartered ABS pointed to hostile policies in the UK as a potential reason for declining international enrolments. The UK government’s decision to reduce the Graduate Route by six months is already having an effect, it said, with 60% of survey respondents saying the incoming policy has had a negative impact.
“The shortening of the Graduate Route, the ban on student dependants, and the proposals for the international student levy will continue to have a damaging impact on business school finances, and by extension, their parent institutions,” warned Stewart Robinson, chair of the Chartered ABS and dean of Newcastle University Business School.
“These results reveal that while some institutions are seeing student numbers grow and finances stabilise, many institutions continue to face significant challenges. Budget cuts, restructuring, and redundancies will continue, and many business schools will face another year of declining student numbers and income,” he added.
The survey revealed that many UK business schools are feeling the pinch, with an increasing number (48%) reporting a drop in year-on-year income in 2025/26 compared to 36% in 2024/25.
Budget cuts, restructuring, and redundancies will continue, and many business schools will face another year of declining student numbers and incomeStewart Robinson, Chartered ABS and Newcastle University Business School
However, more than half of the schools surveyed (58%) said they expected income to increase in 2025/26 – an improvement on the previous year, when more than half expected further decline.
A slew of policies affecting the international education sector were announced as part of the immigration white paper, with stakeholders concerned that each could have a serious impact on overseas enrolments.
The government has decided to cut the Graduate Route from two years to just 18 months, shaving six months off the visa route for international graduates from UK institutions.
A levy on the income institutions make from international student fees was also announced as part of the changes, with a later decision to ringfence this cash to spend on maintenance grants for domestic students. Critics have warned that the move could decimate international enrolments if students are put off by the higher fees many institutions will have to set to cover the cost of the tax.
An earlier decision to ban almost all international students from bringing their dependants to the country with them on a student visa. Since 2024, when the policy was announced, net migration numbers in the UK have seen a steep decline.
