UK business schools have reported improved recruitment after the record declines of recent years, but more than half of deans say cash-strapped parent institutions are leaning on them to enrol more students to balance the books.

Although the annual survey run by the Chartered Association of Business Schools (CABS) found some “cautious optimism” among respondents, there was still “extreme concern” over “growing disparities”, with some schools yet to recover from a loss of large numbers of international students,��and further pressures ahead.

Overall, a quarter (27 per cent) of schools reported a fall in their domestic undergraduate student numbers, compared with 36 per cent that said the same last year. In international undergraduate recruitment,��14 per cent of schools reported lower enrolments in 2025 – a “significant improvement” from 39 per cent last year.

For international postgraduate students – often the largest source of income for schools – 39 per cent reported lower enrolments, “much improved” from last year,��when more than three-quarters saw recruitment drop.

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Stewart Robinson, chair of CABS and dean of Newcastle University Business School,���ٴDZ�����̽����Ƶ that “while some institutions have seen some growth, many others continue to face a second consecutive year of decline”. 

The survey finds a growing disparity between pre- and post-92 institutions in England, Wales and Northern Ireland. While just 16 per cent of pre-92 business schools say they have seen a decline in home undergraduate students, almost three in five (59 per cent) of post-92s have witnessed declines.

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Stewart added: “We should be extremely concerned about the widening disparities between different types of universities. The data show that while some institutions may be experiencing a period of relative stability, this is far from consistent across the sector. 

“Although the overall picture has improved slightly since last year’s worrying results, it’s clear that many institutions are still struggling to recover from the sharp declines seen last year.”

Despite the uneven recovery, most deans still say they are being relied on to cross-subsidise operations within their wider universities.

The survey finds that among the schools whose parent universities are currently facing financial challenges, 55 per cent say they were asked to help by increasing intakes last year.

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A further 58 per cent say they expect to be asked to increase student numbers again next year, despite concerns that increased recruitment is putting a strain on the quality of some courses.

The survey finds that that 29 per cent of schools in England, Wales and Northern Ireland expect to see a slight increase in enrolments in the year ahead, and an additional 6 per cent expect a significant increase. 

Stewart said “the outlook remains extremely mixed”, noting we are yet to see the full impact of the measures proposed in the immigration White Paper, “though the effects are unlikely to be positive”. 

“The proposed international student levy will only increase financial pressures on a sector that is already struggling with concerns about financial sustainability. Although the rise in tuition fee caps…may offer some limited relief, it will not in any way make up for the financial impact of the fall in international student registrations.”

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Business schools were also affected by other government changes, the survey shows. The defunding of higher-level apprenticeships for older people has led to 38 per cent of business schools planning to stop offering these to corporate clients.

A new, lower cap on the tuition fees schools can charge for foundation years has had less of an effect, however, with only 4 per cent of schools that offer this provision planning to reduce it.  

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juliette.rowsell@timeshighereducation.com