UK risks £2.1 billion economic loss as international business school enrolments fall after visa curbs

The UK could lose £2.1 billion in economic contributions following a decline in international business school enrolments, with the financial impact equivalent to 32,300 jobs, according to a new report examining the contribution of overseas students to the country's economy.

The report, conducted by London Economics for the Chartered Association of Business Schools (Chartered ABS), found that international business school enrolments have already fallen by 18 per cent since peaking in 2022/23. The decline follows tighter immigration measures, including the ban on student dependants accompanying most international students.

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The fall has resulted in an estimated £600 million loss for higher education providers and £2.1 billion for the wider UK economy.

The report warned that further declines could deepen the impact. An 11 per cent reduction in enrolments between 2024/25 and 2029/30 would result in a £1.7 billion loss in net economic impact, equivalent to 12,100 jobs.

Michael Mainelli, chair of the Chartered ABS International Students Taskforce, said: “Business schools are engines of economic growth.”

“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.

The report highlighted the scale of the contribution made by international business students. Around one in three international students in the UK is enrolled in a business school, making it the largest subject area for overseas students. Each student generates an average of around £103,000 for the UK economy during their studies.


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The 148,500 students who started Business and Management courses in 2024/25 are expected to generate £16.8 billion in gross economic benefits. After deducting approximately £1.5 billion in public service costs, their net contribution is estimated at £15.3 billion.

This accounts for almost 40 per cent of the £40.4 billion net economic benefit expected from all international students who began their studies that year. Their contribution is also estimated to support 107,800 full-time equivalent jobs.

The economic impact extends beyond universities. Coventry South recorded the highest estimated contribution, at £432 million, equivalent to £3,270 per resident.

James Canning, principal consultant at London Economics, said international business students had a “positive impact” on local economies and 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.

Mainelli said the UK had an opportunity to attract international students being turned away by competing destinations. He added that declining enrolments could also affect maintenance grant budgets and the country's ambition to achieve £40 billion in education exports under its international education strategy.