International business school students set to contribute £15.3bn to the UK economy

A new report from the Chartered Association of Business Schools’ International Students Taskforce quantifies, for the first time, the economic contribution international business school students make to the UK. It finds that each student contributes on average around £103,000 to the UK economy. In effect, every 10 international Business and Management students generate approximately £1m worth of net economic impact for the UK economy over the duration of their studies.  

Business schools teach around one in three of the UK’s international students, more than any other subject area. As a result, international business school students make significant contributions to the economy.   

The 148,500 international students who began Business and Management courses in 2024/25 are expected to generate £16.8bn in gross economic benefits over the duration of their studies. After deducting approximately £1.5bn in public service costs, their net economic impact on the UK stands at £15.3bn. This represents a substantial share of the £40.4 billion net economic benefit that will be generated by the entire 2024/2025 international student cohort, reflecting the global strength of the UK's Business and Management education offering. 

The economic impact associated with international Business and Management students supported an estimated 107,800 full-time equivalent (FTE) jobs in the UK, roughly equivalent to the entire NHS Wales FTE workforce.  

The report, 'The Economic Impact of International Business School Students in the UK', produced by London Economics for the Chartered ABS, also assesses the economic cost of falling international student numbers amidst an increasingly challenging policy environment.  

Restrictive immigration measures, including the ban on visas for student dependents, have contributed to a decline in enrolments. International business school enrolments have already fallen by 18% since their 2022/23 peak. Had enrolments remained at peak levels, the 2024/25 cohort alone would have contributed an extra £2.1bn to the UK economy. This is equivalent of 14,100 jobs, roughly equivalent to the size of BP's UK workforce. The estimated loss in direct fee income to HE providers was £600m, around 5% of total direct fee income from the 2024/25 international student cohort.  

The report models three scenarios for further declines up to 2029/30: 

• Small decline: an 11% fall in student numbers between 2024/25 and 2029/30 would reduce the net economic impact by £1.7bn, equivalent to 12,100 fewer jobs, roughly as many employees working at London Stansted Airport. The loss in direct fee income to HE providers was estimated at £500m.

• Medium decline: a 15% fall in student numbers would reduce the net economic impact by £2.2bn, equivalent to 15,700 fewer jobs, roughly equivalent to the Department for Transport’s UK workforce. This scenario would result in a £600m loss in direct fee income to HE providers.

• Large decline: if student numbers fall back to their 2019/20 level, a 30% drop, the net economic impact would fall by £4.6bn, equivalent to 32,300 fewer jobs, nearly the size of Greggs’ entire UK workforce. Tuition fee income would fall by £1.3bn, or 12% of all direct fee income from international students across the sector.  

This modelling shows the UK faces serious economic consequences if international student numbers keep falling at their current rate or fall further as policy changes take effect. For instance, the international student levy alone is estimated to cost the sector £1bn in fees in its first three years6.  

Further declines will also have a knock-on effect on the future budget for maintenance grants, which is dependent on the new international student levy, and undermine the UK’s ability to meet the £40bn education exports target set out in the International Education Strategy. 

Beyond their economic contribution, international business school students also advance the UK’s soft power and strengthen our global trade links. Many go on to lead high-profile companies in the UK and around the world, reinforcing the UK’s global reputation. 

Notable business school 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).  

The analysis also highlights the important role business schools play as anchor institutions in their local economies, driving good growth in every postcode.  

On average across the 650 parliamentary constituencies, international Business and Management students in the 2024/25 cohort make a £24m net contribution to the UK economy per constituency. 

International business school students had the greatest net economic impact in Coventry South, estimated at £432m, or £3,270 per resident. This was followed by Birmingham Ladywood (£373m, £2,230 per resident), the constituency of Home Secretary Shabana Mahmood, and East Ham (£368m, £2,700). The rest of the top 10 includes Cities of London and Westminster (£330m, £2,510), Ilford South (£250m, £1,810), Bethnal Green and Stepney (£248m, £1,850), Stratford and Bow (£247m, £1,790), Leeds Central and Headingley (£229m, £1,980), Bristol Central (£207m, £2,050) and Manchester Rusholme (£207m, £1,710). 

Business schools are critical to the financial sustainability of their parent universities and the wider sector due to the large number of international students they recruit. The tuition fees paid by the 2024/25 cohort alone will support approximately 41,800 FTE jobs across UK higher education. 

Professor Michael Mainelli, Chair, 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. 

 As our competitors turn inwards, the UK can choose a different path. If we enable our universities and business schools to recruit the top international students our competitors are turning away, we have a real chance of delivering good growth in every postcode. 

"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." 

Professor Stewart Robinson, Chair of the Chartered Association of Business Schools, said:  

"This report confirms what the sector has long known: international business school students make a significant contribution to the UK economy. 

“Their contribution allows business schools to act as important anchor institutions in their local economies by supporting jobs, businesses, and local economic growth. These students are also critically important to the financial sustainability of the universities they attend. Beyond their economic impact, these students contribute to public life, create a global culture on campus and strengthen the UK's soft power.  

“Yet successive policy measures have damaged the UK's reputation as a study destination and the sector's ability to recruit the international students who make such a positive impact on our country. This is also contributing to very serious concerns that universities are at risk of closure due to the ongoing financial challenges they’re facing.  

"This analysis paints an alarming picture of the economic damage caused by declining international student enrolments, and it should be a wake-up call for Government. Data from the Chartered ABS Annual Membership Survey reinforces the challenges in recruitment again in this new academic year, suggesting the report's modelling reflects the reality the sector now faces. 

"It is imperative that the Government works with the sector to prevent further damage to the sector and economic growth. While the Government is on a mission to achieve good growth in every postcode, it will not be able to achieve this if university towns and regions continue to face a decline in international business school students. 

"I want to thank the International Students Taskforce for their valuable work on this important issue." 

James Cannings, Principal Consultant at London Economics, added: 

“This report demonstrates 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. 

“The report shows the role that business schools play in supporting one of the UK’s key export industries. 

“The recent drop in international business school students is stark, even compared to declines seen across the sector. This drop has already decreased the economic impact generated by these students and our modelling shows the potential further damage that could be caused if these trends continue.” 

To read the report, please click here.

To download the constituency level data, please click here.

Notes to editors 

1. NHS Wales employed 99,751 FTE staff as of 30 June 2026 (Welsh Government) 

2. According to BP’s Impact on the UK Economy in 2025, BP employed 13,962 as of December 31, 2025. 

3. According to recent figures, London Stansted Airport employs more than 12,000 employees working across 200 on-airport companies. 

4. At the end of 2025 to 2026, the Department for Transport and its agencies employed around 17,910 staff across the country.   

5. Greggs’ Annual Report, 2025  shows the company employs around 33,000 staff.         

6. Department for Education, International Student Levy – Impact Analysis, October 2026 

This report was produced by London Economics for the Chartered Association of Business Schools. Please refer to Annex 2 of the report for a summary of the methodological approach.