UK universities demand clarity from industrial strategy as visa applications continue to fall

The government has published its monthly visa data which shows that Sponsored study visa applications were down 9% in the year to May 2025, when compared to May 2024. 

Louise Tweedie, Partner and Higher Education specialist at RSM UK, comments: “The downward trend in visa applications continues following the rule changes to dependents which came into effect in January 2024. 

“Universities also continue to face financial pressures and structural changes, with several universities announcing cuts to programmes and departments in May, due to budget constraints. We’re continuing to see universities considering further course reductions in less popular subjects, with voluntary severance schemes for staff as a means to manage these cost pressures. Aside from course closures, some institutions are opting to pause on recruitment activity for less popular courses to preserve resource and funds, with others gradually phasing out programmes.

“However, with rising employment and operational costs, economic uncertainty and a decline in international student numbers, the sector’s financial challenges are unlikely to improve without government intervention. This is why the incoming industrial strategy is integral to shaping the future of UK universities, many of which are recognised globally for their research and development (R&D) capabilities, as well as their ability to create the next generation of workers.” 

She added: “While the government’s spending review didn’t focus too much on higher education, there was a reminder of the intention announced in the immigration white paper to introduce a levy on international student income, which UK universities will be watching closely. The spending review also included an £86bn investment in science and technology which will boost universities’ R&D teams, enabling them to collaborate more with industry, with research contributing to societal and commercial benefits. The industrial strategy therefore needs to clarify the role of UK universities in shaping the eight growth-driving industries, supporting long-term planning, future student demographics, and UK productivity.”