Impact of Government Policies and International Students on UK University Economic Stability

Abstract

Numerous UK universities are experiencing financial instability; with an increasingly competitive and maturing market, reliance has grown on international students to offset institutional shortfalls. Dependency on international student tuition revenue has over-exposed the market to dramatic shifts in political policies, both domestic and internationally, that could significantly impact operational success. UK higher education institutions (HEIs) ability to promote their institutions as they are intertwined with the UK government; thus, controversial policies create a backlash, drawing HEIs into disputes as unwanted participants yet recipients of significant economic disruption. Government policies on domestic tuition caps, Brexit, and increasing geopolitical disputes with China have had a considerable impact on institutional operations. This paper recommends HEIs, principally lower-tabled universities, take a more aggressive strategic realignment to best adapt to the marketplace’s uncertainty. By reemphasising institutional specialisation, variable tuition rates for under-represented growth markets, financial support for EU students, increased distance education presence, and intense market-wide lobbying of government MPs, this paper seeks to open a discussion on how to identify existing problems and target opportunities for growth. The complexity of market conditions and the decreasing solvency of many institutions will not be solved by a single recommendation or a short-term policy but by a complete realignment and robust industry-wide initiatives. If universities cease operations or collapse under market conditions’ financial strain, it will impact the overall market’s reputation, reducing UK institutions’ overall desirability as a major exporter of education.

Stochastic Analytical Approach to the Time Factor Consideration in Assets Valuation

“…T. Scott and N. Mxunpiew argue that international students are critical to the success and competitiveness of an institution in the higher education market [Scott and Mxunpiew, 2021]. The inflow of foreign students to the UK from non-EU countries provided in 2018/2019 academic year almost £ 6 billion in tuition income or more than 30% of the income of all higher education courses.…”

Challenges facing Thai higher education institutions financial stability and perceived institutional education quality

“…According to Fry and Bi (2013), up to 70% of private HEIs enrollment is attributed to international students. International students are more critical of an institution’s brand and reputation, evaluating how opportunities associated with the affiliated school will benefit them economically through a cost–benefit analysis (Scott and Mhunpiew, 2021). Internationalizing Thai institutions requires reallocating resources to marketing efforts to stand out in the international marketplace.…”

“…An increased international student presence would improve domestic student opportunities through increased service offerings and an enhanced internationally tailored curriculum; however, with international programs being taught predominantly in English, most Thai students lack the skills to participate (Tantiniranat, 2020). With the over-representation of international students, institutions are at risk of external forces that may trigger large-scale de-enrollment without warning (Scott and Mhunpiew, 2021). The COVID pandemic is an example of an unforeseen external event that forces large-scale de-enrollment or engagement by international students.…”

“…To remain competitive, Thai institutions are faced with requiring additional foundation courses that could potentially decrease enrollment in their programs. Thai HEIs have attempted to bypass the challenges of domestic recruitment by prioritizing international students; however, dependency on international students leaves Thai HEIs over-exposed to external conditions that can have dire ramifications with little warning (Scott and Mhunpiew, 2021). The realignment of Thai HEIs towards an international market can dissuade domestic students from enrolling due to insecurities with language or core subject competencies (Fry and Bi, 2013), leaving the institution to virtually abandon the local market.…”

The Impact of Brexit on the Education Sector in the United Kingdom: A Comprehensive Analysis

“…However, the end of this principle has raised concerns about the potential decline in EU student enrolment. Changes in visa regulations and the potential reclassification of EU students as international students could lead to increased tuition fees and additional administrative burdens (Scott, 2021). These factors may impact the attractiveness of UK higher education institutions and influence the choices made by prospective EU students.…”