The Chartered ABS is monitoring the ongoing developments around Brexit to ensure that areas of interest for UK business schools are addressed. We are aware that Brexit is impacting on student recruitment, research funding and partnerships. At the same time, there is scope for Brexit to lead to opportunities as well as threats to the sector.
Why the EU is important to UK business schools
- Business students from the EU are estimated to contribute £1.3bn to the UK economy each year through course fees and off-campus spending [i]
- £119m of business students' spending goes to universities in course fees
- One in five of all EU students studying in UK universities are studying in a business school
- There are 27,260 EU students on business courses
- UK business schools received £18.1m in research funding from EU sources in 2017/18 (HESA Finance Record 2017/18)
- In four of the last six years, business and management received more funding from EU government bodies than from the UK central government
[i] Estimate calculated using the economic values of EU students calculated by Universities UK & Oxford Economics, October 2017
Causes for concern
Student recruitment: According to our 2018 Annual Membership Survey, for the current academic year nearly 40% of UK business schools saw a decline in applicants from the EU to their undergraduate business courses since the EU referendum.
Staff recruitment and retention: Since the EU referendum one in five member business schools have reported a decrease in retention of EU staff, and one in six are struggling to recruit new staff from the EU.
Research income for UK business schools: Income from EU government bodies has increased from 18% of total funding in 2012/13 to 22% in 2017/18, becoming a vital source to fund important research. However, 46% of business schools expect to lose research funding from EU sources in the next 12 months and there are currently no guarantees that British universities will be able to continue to access European research funding after Brexit.