Representing a 30% drop in enrolments, this economic loss is equivalent to 32,300 jobs. The report, carried out by London Economics for the Chartered Association of Business Schools, analysed international students’ economic contributions to the UK economy.
It found that since the tightening of immigration measures, such as the visa ban for student dependents, international business school enrolments have already fallen by 18% following their peak in 2022/23.
This decline in students reflects a loss of £600m to higher education providers and £2.1bn to the wider UK economy. If enrolments continue to follow this trend, substantial impacts on the economy, higher education and jobs will be seen.
A reduction of just 11% between 2024/25 and 2029/30 would result in a £1.7bn loss in net economic impact. This is equivalent to 12,100 jobs – roughly the number of people working at London Stansted Airport.
Meanwhile, international business school students are predicted to contribute billions to the UK economy over the duration of their studies, according to the data.
Recent declines in international student numbers have already cost the country billions
Michael Mainelli, Chartered ABS International Students Taskforce
“Business schools are engines of economic growth,” said Michael Mainelli, chair of the Chartered ABS International Students Taskforce.
“This report demonstrates the value of international business school students and the vital role they play in local economies across the country. Yet recent declines in international student numbers have already cost the country billions,” he added.
With around one in three UK international students enrolled in a Business school, more than any other subject area, their contributions to the economy are significant.
Each student generates, on average, around £103,000 for the UK economy during their time in the UK.
The report found that £16.8bn in gross economic benefits will be generated from the 148,500 students who began Business and Management courses in 2024/25.
After deducting approximately £1.5bn in public service costs, their contribution to the UK economy amounts to £15.3bn. This represents almost 40% of the £40.4bn net economic benefit that will be brought in by all international students that year.
This economic impact is estimated to have supported 107,800 full-time equivalent (FTE) jobs in the UK, roughly equivalent to the entire NHS Wales FTE workforce.
Business schools have also been found to drive growth in every postcode, with the greatest economic impact noted in Coventry South, estimated at £432m, or £3,270 per resident.
Their significant contribution to the UK economy also highlights the global strength of the UK’s business and education offering.
Mainelli says the UK has the opportunity to allow “universities and business schools to recruit the top international students” competitors are “turning away.”
“There is a golden opportunity to get this right. Recruiting the best and brightest is not simply a tagline. It signals to the rest of the world that we are global leaders in higher education,” he added.
Declines will also have a knock-on effect on the future budget for maintenance grants, undermining the UK’s ability to meet the £40bn education exports set out in the international education strategy.
James Canning, principal consultant at London Economics, said the report highlighted the “positive impact” that international business school students have “not only on local economies, but also on the wider higher education sector.”
“The tuition fee income provided by international business school students is vital in a moment when close to half of the UK’s higher education providers face a deficit,” he said.
Not only do international business students contribute economically, they also advance the UK’s soft power and strengthen global trade links, with many going on to lead high-profile companies in the UK and around the world.
Notable alumni include Sir Stelios Haji-Ioannou, founder, EasyJet (Bayes Business School), Aishah Ahmad, former deputy governor, Central Bank of Nigeria (Cranfield School of Management), Phuthi Mahanyele-Dabengwa, CEO, Naspers South Africa (Leicester Castle Business School), and Kumar Mangalam Birla, chairman, Aditya Birla Group (London Business School).
