Over 40% UK Universities Face Deficits Amid International Student Drop

Universities in both Quebec and the UK are facing significant financial challenges, largely due to declining international student enrolments and inflationary pressures. In Quebec, at least seven universities predict budget deficits for 2025–26, with losses attributed to government caps on international student numbers and a 43% drop in applications, threatening $200 million in revenue. Similarly, in the UK, over 40% of higher education institutions are projected to run deficits in 2024–25, driven by lower-than-expected international student recruitment and rising costs, leading to widespread cost-cutting measures including staff redundancies. The UK's Office for Students (OfS) warns that optimistic growth projections may be unachievable, potentially prolonging financial instability unless significant reforms occur. The National Centre for Universities and Business highlights the risk that short-term cuts could undermine universities' roles in innovation and economic growth. Calls are growing for government intervention to provide sustainable funding solutions and prevent potential university closures amid these mounting fiscal pressures.