UK business schools look to TNE amid uneven recovery

Roughly one third of all international students in the UK are enrolled in business schools, meaning policy shifts in this space are felt more acutely than in many other parts of the sector.

The PIE News sat down with Flora Hamilton, CEO of the Chartered Association of Business Schools (Chartered ABS) to discuss the uneven landscape that is pushing business schools to explore new models.

The association’s annual membership survey for 2025 showed signs of somewhat uneven recovery, with 14% of schools reporting lower international undergraduate enrolments, an improvement on the previous year when 39% reported declines.

Meanwhile, 39% reported lower international postgraduate enrolments, significantly better than the previous year when over 75% reported declines.

Despite improvement, several schools have had two consecutive years of significant declines.

“There are some signs of recovery, but the business schools are operating in a very challenging environment, and that is is further being undermined by government policies… it’s reducing the UK attractiveness as a study destination,” explained Hamilton.

The survey results come as business schools grapple with a difficult financial environment. Some 48% of schools reported a fall in income in the 2024/25 academic year.

“Our data shows us that business schools are net income generators for universities and they’re under increasing pressure to increase revenue from international students and other activities, while also continue to redirect net income to support subsidised research and teaching and other faculties.”

“Business schools can’t be a single fix for for a university that’s in a very precarious state of financial finances. But they can certainly go a long way to supporting their university,” said Hamilton.

At the same time, Hamilton notes that domestic UK student recruitment is “highly, highly competitive”, and many schools are being asked by their parent universities to absorb voluntary redundancies, as well as staff recruitment freezes, intake increases and restructuring, even while their contribution targets are not eased.

The UK government has set out plans for a £925 charge per international student from 2028, Hamilton argues this is set to negatively affect future enrolments, which she said sits on top of a “plethora” of recent policy changes.

Although Hamilton maintains that the UK’s competitive position “remains strong” she said that recent changes – the ban on dependant visas, the shortening of the Graduate Route, the introduction of a levy, all pose a “significant risk to UK attractiveness”.

In the membership survey, 88% of the members reported that these policy changes are having a negative impact over the previous academic year and 73% say these are going to continue to have a negative impact.

Faced with domestic political pressure on net migration and the levy coming down the track, many business schools are looking to transnational education (TNE) as a growth area.

“TNE is a growing market,” said Hamilton, noting that 53% of the business school deans increased their spending on TNE in 24/25 and the same proportion expect to increase their spending further in 25/26.

We expect continued expansion by business schools in TNE programs, given that constant public pressure on net immigration figures
_{^{Flora Hamilton, Chartered ABS}}

“We expect continued expansion by business schools in TNE programs, given that constant public pressure on net immigration figures,” she added.

“For many of the universities, they have pivoted heavy focus and emphasis to TNE for financial reasons, and I have said this publicly, but they actually then need to recalibrate their objectives around TNE because TNE is not a short term fix. It’s a long term partnership… income is not generated quickly, so therefore you need to be thinking mid to long term.”

Hamilton is also keen that TNE is not seen purely through a financial lens. She argues that UK institutions must compete on the quality of their product – degrees that enhance employability and build digital and AI capabilities – and points to business schools’ strength in leadership for a digital age and soft skills development as part of the value they can offer both onshore and through TNE partnerships.

Within TNE, Hamilton notes India as a core growth market.

“One distinct opportunity for the business schools is this India-UK 2035 vision that sits under the India-UK trade deal where education and skills development is one of the five pillars and that means deeper bilateral university collaborations. So it’s there, it’s in the shared mission statement of both our governments, and that means that India is a very strong focus.”

Regardless of such opportunities, Hamilton is calling for a period of policy stability for business schools and the broader higher education sector going forward.

She is also urging “honest conversations with the electorate” to “ensure that the business schools can continue to recruit international students and help to maintain the financial sustainability of the sector”.

“The message has to be that the government has made significant policy changes to ensure previous loopholes have been closed down, and therefore the voters should hear a confident message from government that international students bring an economic benefit and a societal benefit. They support prosperity across all of our regions and nations while they’re here studying.”

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