Business transformation key for growth in universities as international student numbers fall

The government has published its monthly visa data which shows that Sponsored study visa applications were down 10% in the year to April 2025, when compared to April 2024.

Lisa Randall, partner and National Head of Higher Education at RSM UK, comments: “The impact of changes to dependents introduced in 2024 remains a key factor in the downturn of visa applications. In addition, the rise in employers’ National Insurance contributions came in at the start of April, so universities have further cost pressures to manage alongside lower international student numbers. As a result, UK universities are even more focused on financial sustainability and business transformation to reduce deficits. However, running business as usual activities while executing cost saving measures is a tricky balancing act, especially as restructuring impacts staff, students and programmes.

“The current financial landscape remains challenging, as falling international student numbers, tax increases and wider economic uncertainty are creating the perfect storm of falling income, rising operational costs, and unattainable targets. Amid sector-wide redundancies, not all universities have the right expertise in their staffing pool or capacity to address these challenges, so we are seeing providers seek external support to deliver tangible business transformation.”

She added: “Ahead of the Government Spending Review and Industrial Strategy in June, amplifying the voice of the higher education sector and highlighting the combined value of education and research in driving UK productivity is essential. Universities therefore need clarity to support long-term planning for future student demographics and ensure their programmes align with the government's eight growth-driving industries.”