Chartered ABS Annual Membership Survey 2025: Financial sustainability becomes the top priority for business schools

The UK’s business schools, on which universities continue to rely heavily for student numbers and fee income, are facing ongoing financial strain despite some signs of recovery in international student recruitment.

Results from the 2025 Chartered Association of Business Schools Annual Membership Survey show that while overall student recruitment in 2025/26 has improved for some institutions following a difficult year, many continue to face a challenging operating environment marked by declining enrolments.

For enrolments of UK students, 27% of schools reported lower numbers this year compared to 36% in 2024/25. For international undergraduate students, 14% of schools reported lower enrolments in 2025, a significant improvement from 39% last year. For international postgraduate students, 39% reported lower enrolments, much improved from a year ago when more than three-quarters reported lower enrolments. 

Despite this improvement, international enrolments will remain lower than before 2024/25, with some schools experiencing two consecutive years of decline.

Nonetheless, the January 2026 intake outlook is more favourable, with over half of Deans expecting enrolments to remain stable and just over a third anticipating an increase.

The survey highlights the growing financial pressures across the sector.

An increasing number of schools (48%) reported a fall in income for the prior academic year of 2024/25. In last year's survey only 36% reported a fall in income for the 2023/2024 academic year. Only 38% reported an increase in income 2024/2025, compared to 51% in 2023/2024.

Universities remain incredibly reliant on business school income, particularly from international postgraduate students, with 82% of respondents stating that their university’s finances rely entirely or significantly on the recruitment of these students. However, many business schools were asked to make cuts during 2024/25, with voluntary redundancies, recruitment freezes, and restructuring among the most common measures.

Unsurprisingly, financial performance has become the number one priority for business schools in 2025, rising from third place last year. For the financial year of 2024/25, 39% of the responding Deans reported a decrease in expenditure compared to 2023/24, while 28% reported an increase. Looking ahead to the current financial year, almost half of schools anticipate decreasing their expenditure, with 15% expecting to make significant reductions

Despite the financial strain in the sector, there are some signs of recovery for the year ahead. More than half of schools (58%) expect income to increase in 2025/26, a marked improvement from the 2024 survey, when over half anticipated further decline.

The policy environment remains a significant concern for the sector. The Government’s decision to reduce the Graduate Route visa from two years to 18 months has already impacted schools, with 60% of schools reporting the change has already had a negative impact.

Meanwhile, the uplift in the tuition fee cap for domestic students will have a limited impact on business school finances, with 62% of responding deans saying this increase would help with the financial sustainability of their institution to at least a moderate extent, and 26% saying it would help to a very limited extent.

Business schools also continue to make progress on monitoring and reducing attainment gaps. Many have embedded monitoring and evaluation into annual review processes and are using a combination of approaches such as targeted academic and personal support, curriculum changes, and initiatives to improve equity in employability.

Professor Stewart Robinson, Chair of the Chartered ABS and Dean of Newcastle University Business School, said:

“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.

“It comes as no surprise that the main priority for business schools is financial sustainability and while the rise in tuition fee caps will provide much needed relief in the sector, it won’t go far enough for many institutions. Meanwhile, the shortening of the Graduate Route, the ban on student dependents, 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.

“We welcome the Post-16 Education and Skills White Paper’s vision for universities, including its emphasis on raising quality. However, we remain concerned about the limited support for the sector.”

Download the Chartered ABS Annual Membership Survey 2025