Significant fall in EU applications to UK business schools

The annual survey conducted by the Chartered Association of Business Schools (CABS) found that 40% of UK business schools reported a fall in undergraduate applications from EU countries.

UK business schools are typically large contributors to their universities, hence the report raised concern that any fall in revenues could have a considerable impact on universities’ earnings.

The remaining 60% of business schools were roughly equally split between the number of EU undergraduate applications rising or seeing no change.

Furthermore, almost 20% of business schools reported an increase in the number of EU undergraduate students not turning up for the start of their courses.

For over one third of business schools, fees paid by EU students represent between 11% and 40% of income. However two-thirds of business schools see fees received by EU students represent less than 10% of income.

Students from outside of the EU are seen to contribute a greater proportion of income to business schools: for more than four in ten schools, they account for over 30% of total income. This is largely due to the higher fees they pay.

Of these non-EU international students, 40% of schools reported a decrease in the number of undergraduate applications, whilst 37% reported a rise.

Simon Collinson, chair of CABS and deputy pro vice-chancellor for regional economic engagement at Birmingham University, highlighted the contribution that business schools bring, saying that they were “substantial earners”.

He added: “we could be at quite a tipping point where revenues will start at some point to decline”.

Responses to the CABS survey found that only one in three business schools saw a fall or no change in revenue, whereas almost 66% reported an increase in income.

“We could be at quite a tipping point where revenues will start at some point to decline”
Simon Collinson

On the prospect of cheaper courses beginning to emerge on the continent, professor Collinson said: “Over the next year or two, I think they will start attracting the Indians and the Chinese who usually come to the UK for a management education”.

The report also highlighted the effect that Brexit has had on EU staff working at UK institutions. One in six business schools reported already losing EU staff, and 25% reported they were struggling to recruit new staff from the EU.

Alistair Jarvis, chief executive of Universities UK, said: “This survey highlights the increasingly urgent need to provide clarity on the future visa regime for European staff and students and the rights of current EU nationals working at our universities.

“The UK Government must ensure that the UK continues to welcome, with minimal barriers, talented EU staff and students. EU students and staff make an enormously important contribution to UK universities and our business schools. We have to make them feel welcome here, or risk losing them to competitor countries.”