UK Business Schools Report Sharp Fall in Overseas Students

Nearly seven in 10 UK business schools saw fewer overseas students enrol this year, a new survey has found. The fall is the sharpest in years, and many schools expect things to get worse before they get better.

The Chartered Association of Business Schools (Chartered ABS) asked 59 business schools across the UK about student numbers for the 2026-27 academic year. Its Annual Membership Survey 2026 found that 69 per cent of schools reported lower international enrolments than last year. That is almost double the 35 per cent that reported a fall in last year’s survey.

Almost half of the schools — 48 per cent — said the fall was significant, while 21 per cent said it was slight. Only 19 per cent reported higher international enrolments, down from 46 per cent a year ago.

What the survey found

The drop was steepest at postgraduate level. Three in four schools reported fewer international postgraduates, and 60 per cent described the fall as significant. At undergraduate level, three in five schools reported lower international enrolments, with 29 per cent calling the drop significant.

Two in three schools (66 per cent) said they were below their recruitment target for international students overall, including 37 per cent that were well below target. In Scotland, the picture was even worse: 84 per cent of schools reported lower international enrolments, with 67 per cent describing the fall as significant.

The financial strain is already showing. The survey found that 94 per cent of business schools rely on international student fees, at least in part, to stay financially viable. Nearly half (47 per cent) said they had already lost income in 2025-26, and 59 per cent expect further falls in income.

Why overseas numbers are falling

The survey points to changes in UK immigration policy as a major factor. Rules on student visas have tightened, and changes to the graduate route — which lets overseas students stay and work in the UK after their course — have made Britain a less attractive choice for many students.

Official figures back up the trend. Sponsored study visa grants to main applicants fell to 383,455 in the year ending June 2026, as fewer students chose to apply to UK universities.

Another worry is on the way. From the 2028-29 academic year, the government plans to charge universities a levy of £925 for each international student. The survey found that 71 per cent of deans believe the levy will harm recruitment further.

Professor Stewart Robinson, chair of Chartered ABS and dean of Newcastle University Business School, said the results were “worse than expected”. Speaking at the association’s annual conference, he warned that falling overseas numbers are now a serious threat to the sector.

What it means for universities

International fees have become a lifeline for many UK universities. When overseas numbers fall, schools lose income they use to fund teaching, research and campus services. Some deans now warn that smaller, specialist courses could be cut, even when employers value them highly.

Gillian Armstrong, pro vice-chancellor and executive dean at Ulster University Business School, told the Chartered ABS conference that institutions are taking “a hard look” at which courses they can still afford to run.

The pressure on universities comes as the wider UK jobs market also cools. Read our earlier story: UK Jobs Market Cools as Vacancies Fall to 691,000.

What happens next

The outlook remains weak. Six in 10 business schools expect January 2027 enrolments to be lower than in January 2026 — more than five times the share that predicted a fall in last year’s survey.

Universities will be watching the government’s next moves closely. Any further tightening of visa rules, or a rise in the planned student levy, could deepen the crisis. For now, business schools are bracing for another difficult year — and hoping that overseas students return.

Sources: Chartered Association of Business Schools, Annual Membership Survey 2026; Times Higher Education; The Indian Express.