Labour Is Headed For Power In The UK. What Does That Mean For British B-Schools?

A new political day may be about to dawn in the UK, if polls are accurate, with Labour set to take power for the first time in more than a decade. What will that mean for the nation’s business schools? iStock photo

Change may be coming to the United Kingdom this summer. If polls are accurate, the Labour Party is poised to win an overwhelming decision in mid-summer elections after 14 years as the political opposition.

What would it mean for higher education in the UK, and in particular for business education, if Labour is victorious as expected on July 4? Poets&Quants asked deans and others at some of the country’s top B-schools to weigh in.

THE CONSERVATIVE RECORD

Since taking power in 2010, the Conservative track record on higher education has been mixed, says Professor Amir Michael, head of the Accounting Department at Durham University Business School. “The Conservatives made very little investment in the higher education sector over the years, and this caused some radical financial difficulties to the sector,” he tells Poets&Quants.

“Freezing tuition fees was one of the highlights,” he adds, but that had a negative side effect as well: It “didn’t help universities’ affordability to provide an excellent education and wider students experience, leading to the over-reliance on international unregulated fees to fill the gap.”

Then there was Brexit.

“Brexit affected student recruitment from Europe, but even more negatively affected recruitment and retention of the best European academics,” Michael says. “The UK’s regulations and structure didn’t help to mitigate the impact of Brexit or maintain the top HEIs’ (Higher Education Institutions’) position in rankings.”

OFFSETTING THE BREXIT DAMAGE

“The re-introduction of the graduate visa route was a major positive for business schools across the UK,” says Sheffield Dean Conor Moss, “however the more hostile environment and ongoing political commentary around legal immigration has definitely suppressed demand”

Five academics emailed their thoughts on the upcoming election to P&Q. Like most, Conor Moss, dean of the College of Business, Technology and Engineering and dean of Sheffield Business School, agrees that Brexit has been a negative for higher ed in the UK.

But UK B-schools’ strong connections to other schools and partners around the globe helped offset the damage, Moss adds.

“Most commentators would agree that Brexit has not been a positive for UK higher education, given the European-wide networks in research and education,” he says. “Even many of those that supported Brexit now admit that the suggested benefits for business and the wider UK economy haven’t been realised.”

However, Moss adds, many UK B-schools’ partnerships across the globe are strong, and that includes Sheffield Business School. “We haven’t been constrained in strengthening these relationships which transcend Brexit,” he says. “The re-introduction of the graduate visa route was a major positive for business schools across the UK, however the more hostile environment and ongoing political commentary around legal immigration has definitely suppressed demand.”

NEW PERSPECTIVES ON THORNY CHALLENGES

As exciting as a change of government is, Labour has not campaigned on education and its plans for the higher ed sector are largely unknown, says Stephen Bach, executive dean of King’s Business School of King’s College London.

“We haven’t seen the Labour election manifesto yet and higher education certainly hasn’t been a major campaigning focus for them over the last few years, so we will wait and see,” Bach says. “They have, however, been very active in re-establishing relations with business and this creates opportunities for business schools.”

There is considerable uncertainty about what a Labour government might do regarding UK higher education,” says Professor Sankar Sivarajah, dean of the Bradford University School of Management — “including within the Labour party itself. While education is a significant concern for voters, the primary focus tends to be on schools and childcare rather than universities. Therefore, we might not see an immediate impact on graduate business education when Labour takes power this summer.”

Nalisha Patel, regional director for Europe at the Graduate Management Admission Council, says the UK’s new political regime will bring new perspectives to a batch of thorny challenges. “People will be hoping they can deliver on challenges specifically around the economy and impacts of migration, both impacting graduate business education in direct and indirect ways,” she says.

“We know that international education brings a huge amount of economic benefit and yet the topic of perceived contribution vs detraction has become incredibly muddy,” Patel says. “From our work here at GMAC with UK institutions there seems to be optimism that there is a chance to relook at this and speak to some of the more negative perceptions.”

STEPHEN BACH

Professor and Executive Dean, King’s Business School, King’s College London

Labour has been out of power since 2010. What does it look like in the UK when a change in the ruling party happens after so long? How do you expect graduate business education in the UK to be impacted if, as expected, Labour takes power this summer?

The UK is very used to short electoral cycles and although the Conservatives have been in office since 2010 we have had four different Prime Minsters over that period and very significant political and economic changes, from ‘austerity’ immediately following the Global Financial Crisis, to Brexit to the extraordinary circumstances around Covid and finally the period of high inflation. All of these changes have affected business education one way or another, so we are well-used to change.

The two things we’ll be watching are the economy: which for now seems to be going in a positive direction with inflation down and interest rates predicted to fall and the Labour Party’s election manifesto for its detailed policies.

Stephen Bach

What have been the highlights of the Conservative reign as it pertains to graduate business education in the UK? On the other hand, how has Brexit, in particular, impacted business schools, and higher education in general?

The Conservatives raised the cap for undergraduate fees which unleashed huge new cash reserves for universities and, in 2015, also abolished student number controls. This allowed strong growth for business schools and, with the removal of caps on international fees to enable them to move in line with the global market, strong growth in income. But although it has tended not to impact business schools so much, the last 5-10 years have also seen industrial action, linked to the ways that the sector has had to adjust to the funding landscape.

Brexit has also had an impact, which we have been in the fortunate position to be able to offset through partnerships with other continental European schools such as EDHEC. Schools like King’s Business Schools are global players and our classrooms have over 80 nationalities represented, so we aren’t confined to one regional market.

What Labour education policies excite you, and what about their platform/plans makes you wary?

We haven’t seen the Labour election manifesto yet and higher education certainly hasn’t been a major campaigning focus for them over the last few years, so we will wait and see.

They have, however, been very active in re-establishing relations with business and this creates opportunities for business schools.

While the financial commitment has been pared back, Labour’s Green Deal plan is also exciting and aligned with the priorities of our Centre For Sustainable Business and King’s wider efforts on climate change. Businesses tell us that sustainability skills and knowledge are a barrier to them and we are committed to helping to plug that gap.

Alongside climate change, the other major challenges are AI and the demographic shift to an older population. The workplace will transform and I’d like to see the major political parties talking seriously about how we can encourage the sort of lifelong learning that will enable people to flourish and be productive throughout their careers.

If you were Keir Starmer or Bridget Phillipson what would you do for graduate business education in your first days/weeks in power? What moves would help graduate business education — and higher education in general — the most?

I would like to hear some strong commitments around tackling inequality of access to higher education and to workplace-based opportunities that help students towards career success. Our Widening Participation programmes do fantastic work to identify talented students and give them the confidence to apply but we’d like to do more to address some of the barriers that can prevent them making the most of the non-academic opportunities we offer.

We would also like to see students taken out of the migration targets. Most of them return to their home country after graduation and the focus on them in conversations around migration has been out of all proportion.

The other changes I’d make are less about what the government can do for higher education, and more about what higher education and business schools can contribute.

I would like to see research funded properly: at the moment the formula used to cost research from the funding bodies underestimates the true cost of research, leaving universities to fill the gap. I would also like to see a dedicated funding council for Business-focussed research.

It would be good to see more discussion around skills and productivity. We are doing work through organisations like the Productivity Institute to understand how a range of big picture changes, from devolution to investment in new technologies, to a cultural shift to professionalise management, can have a profound impact on our economy. Business schools can contribute both to our understanding of the problems and solutions and to actually providing solutions for skills development.

We also need a clearer sense of direction around the use of AI. Researchers like my colleague Oguz Acar have done excellent work on embracing AI in business education in a pragmatic way. Things are changing very fast and any new government should be making full use of the research that the sector is doing on AI from practical applications to skills issues and ethical issues.

Finally, King’s Business School in particular has a role to play in shaping investment and change in the NHS. Researchers in our Public Services Management and Organisation department have very deep expertise around workplace and skills issues in the NHS. We also offer an Advanced Healthcare Leadership Programme with IE on Health management. The NHS is one of the world’s single biggest employers and an essential part of our economy. Contributing to improvements in the NHS, from reducing costs and improving productivity and the wellbeing of its workers. to helping us all to live well for longer, is one of the most important ways that we can have an impact.

CONOR MOSS

Dean, College of Business, Technology and Engineering & Sheffield Business School

Conor Moss

The most recent example of this kind of change was seen in 2010, when the Conservative led coalition came into power. They were immediately faced with a credit crunch as a result of the 2008 global financial crash, so much of the agenda was set by global financial events rather than a radical plan for change based on pre-election manifestos. In 1997 it was a different story, when the ‘New’ Labour Government enacted a wide-ranging plan for reform around public services and the economy.

If we see a change of Government in 2024 then we can expect it to feel more like 2010 rather than 1997. Public finances are constrained and there are a number of pressing issues that require attention, particularly within our public services. However, it’s clear that whoever gains the keys to No10, kickstarting the UK’s stagnant economy will be a top priority. This is a must in order to create the fiscal headroom required for investment, a fact that all the major political parties recognise. This is a challenge, but it presents business education in the UK with new opportunities to show how we can play an ever more important role in supporting economic growth; this will require the continuation of programmes such as Help to Grow SME programme, Made Smarter and ongoing support investment in research and development.

As a university that places a huge amount of value in work-based education, we welcomed the move to open up new ways to gain valuable higher level skills through degree apprenticeships. As one of the pioneers of degree apprenticeships when they were introduced in 2015, Sheffield Business School now has a comprehensive programme of degree level and master’s level business and leadership courses via this route. We have seen this new route become extremely attractive for both existing employees and new apprentices, who are able to earn whilst they learn. In that vein we have also been one of the key delivery partners for the government’s Help to Grow programme and have supported over 200 small and medium size enterprises through the programme; we have seen these businesses grow and they continue to work with us to support our taught programmes, recruit our graduates and engage in research and development to support their growth.

Most commentators would agree that Brexit has not been a positive for UK higher education, given the European-wide networks in research and education. Even many of those that supported Brexit now admit that the suggested benefits for business and the wider UK economy haven’t been realised. However, Sheffield Business School partnerships across the globe are strong, and we haven’t been constrained in strengthening these relationships which transcend Brexit. The re-introduction of the Graduate visa route was a major positive for business schools across the UK, however the more hostile environment and ongoing political commentary around legal immigration has definitely suppressed demand.

What Labour education policies excite you, and what about their platform/plans makes you wary?

In terms of policies around higher education, there hasn’t been much in the way of detail. However, in fairness, creating a sustainable way of funding higher education in the UK is a complex issue. But perhaps the most welcome thing that any Government could provide is relatively simple. Unambiguous recognition of the value of higher education for our wider society and economy is something that should be central for any Government, and in particular the value of business education and our contribution to developed a skilled workforce that supports economic growth. If we want to see growth in our economy, then enterprising, entrepreneurial students and graduates from places like Sheffield Business School are critical. Additionally, given the huge soft power and economic gain from having a large international student body then a simple message that international students are both welcome and critical to our economy would be very helpful. Given the scale of the challenge any new government will face, supporting higher education should not fall off the list of priorities, despite the need for potentially difficult decisions around how we properly invest in it.

As I have outlined, a clear statement about the value of higher education and the role it has to play in our economy would be a good start, and we need a genuine debate and long-term solutions around higher education finance in the UK. However, I’d be equally as keen for them to understand what graduate business education can do for the UK and their agenda around economic growth. As outlined above we do more than just educate undergraduates and postgraduates; we already play an active role in supporting business through the supply of graduates, degree apprenticeships and government funded projects such as Help to Grow and Made Smarter; an enhancement and long-term plan to supercharge SMEs would be a great start and aligns with their ambition to reboot the economy. I’d like to see even more devolved money and powers to the regions so we can develop innovative and impact innovation and skills interventions and drive economic growth. Business education had a key role to play in supporting economic growth; we are ready to work with any new Government to create new opportunities to expand our positive impact even further.

NALISHA PATEL

Regional Director for Europe at the Graduate Management Admission Council

Nalisha Patel

The world has changed so much in the last 14 years, that it’s hard to draw comparisons to changes in the ruling party of the past, but we can assume it will start with some bumps as change inevitably does.

Labour have the opportunity to approach the challenges of current times with new perspectives, and people will be hoping they can deliver on challenges specifically around the economy and impacts of migration, both impacting graduate business education in direct and indirect ways.

We know that international education brings a huge amount of economic benefit and yet the topic of perceived contribution vs detraction has become incredibly muddy.

From our work here at GMAC with UK institutions there seems to be optimism that there is a chance to relook at this and speak to some of the more negative perceptions.

A big positive for business education was the introduction of the Post-study work visa (Graduate visa) in 2021 which allowed international students to work for up to 2 years. This was a very welcome policy for business schools which became more attractive as people sought global work experience. The uptake in this, together with the skilled visa route, further boosted the UK’s reputation for a study destination.

Yet together with Brexit-related restricted European free movement, the number of non-EU workers now outnumber those from the EU, marking a significant change in the make-up of the UK’s workforce. This came under the spotlight last year as the largest group of net migration to the country was international students and their dependents. It sparked a change in government policy, limiting the ability of students to bring dependants with them on their student visa.

Neither party has outlined a plan to reverse those routes if elected, but it’s clear that net migration is a complex and important issue in the country right now, and while the Conservatives have proposed to halve net migration, Labour have not yet confirmed any target.

What Labour education policies excite you, and what about their platform/plans makes you wary?

While there are not yet any firm plans or commitments in the education space in the manifesto, there are three key areas that stood out to me. First, Labour’s skills levy reform could potentially provide more funding for training which of course would provide opportunities to provide options in this space.

Secondly, Executive Education in the UK has the potential to adapt, and build courses that respond to Labour’s policies – focusing on sustainability, workforce skills, public sector engagement, financial strategy, data governance, and real estate management.

Finally, we can expect a bit of stability due to a summer budget being ruled out, hopefully mitigating any economic panic, as we had with the mini-budget in 2023.

Of course, Labour’s potentially more ‘flexible’ approach to immigration could impact international student recruitment, potentially increasing diversity and enrolment from abroad. But there have been no firm commitments in place.
Some extra complexity is likely to arise for business schools around data compliance – the focus on tech transparency could require business schools to strengthen data privacy practices and ensure compliance with new regulations, which overall is a positive thing- but with the international recruitment strategies within these schools it will likely come with more resource requirements.

I would provide spoken reassurance that the UK believes in the value of business education, which in turn sends a good message domestically and internationally on its contribution, and starts to shift the confused dialogue on types of migration.

The Independent Higher Education has put forward a manifesto which has some really strong recommendations including better recording and representation of migration statistics allowing for more nuanced and relevant policies, a request to commit to the Graduate visa which was recently reviewed for ‘abuse’ and came up unfounded, more focus on global employability. This group has a really strong backing in the UK and really seeks to have a more economic look at the input of international students.

We need leaders who understand cross-culture, cross-industry business both in the UK, and as a hub of globalization we also export so much of that expertise. I would like to see the narrative shifted to showcase what the graduate education industry does to support social and economic development.

SANKAR SIVARAJAH

Professor and Dean, University of Bradford School of Management

Sankar Sivarajah

Unfortunately, there is considerable uncertainty about what a Labour government might do regarding UK higher education, including within the Labour party itself. While education is a significant concern for voters, the primary focus tends to be on schools and childcare rather than universities. Therefore, we might not see an immediate impact on graduate business education when Labour takes power this summer.

The emphasis appears to be on broader economic growth through skills development and improvements in school education. This could ultimately benefit universities, as they will be integral to any government initiative aimed at enhancing skills, productivity, and opportunities.

What have been the highlights of the Conservative reign as it pertains to graduate business education in the UK?
The only major highlight of Conservative reign would be the focus on apprenticeship and enterprise education.

On the other hand, how has Brexit, in particular, impacted business schools, and higher education in general?

Brexit has significantly reduced the number of EU students enrolling in UK universities, with enrollments more than halving post-Brexit. The loss of access to home fees and student finance for EU students has been a major deterrent. This decline has also negatively affected student mobility initiatives and the overall internationalization experience.

Beyond enrollment numbers, Brexit has severely impacted access to European research funding and knowledge transfer activities, hindering collaborative research opportunities and financial support for academic projects.

What Labour education policies excite you, and what about their platform/plans makes you wary?

Labour’s intention to recruit teachers to address shortages in key subjects is commendable. However, funding this by ending tax breaks for private schools raises concerns. Their proposal to recruit 6,500 new teachers aims to prepare children for life and work, thereby improving education standards and ensuring high-quality education for all.

The proposal to review and broaden the school curriculum to include creativity, digital, and communication skills is promising. However, the lack of a clear implementation plan, especially given the current underfunding in the education sector, is concerning.

Prioritise higher education as a key issue, despite it not being a top concern for many UK households. There is a fundamental need to assess whether the current graduate education business model meets the country’s needs. This involves evaluating the higher education structure to ensure it is fit for the future and exploring sustainable funding options.

What moves would help graduate business education — and higher education in general — the most?

New models of university funding: In the short term, explore whether the higher education structure can be made financially sustainable within the current funding model, given the limited access to new funds. In the medium term, consider the long-term sustainability of a quality higher education sector and call for a systemic review of the HE funding landscape. Innovative thinking about university funding is needed, including exploring alternative models such as a progressive graduate tax or levies on graduate employers.

Adhere to advisory committee reviews and recommendations: It is important to strictly adhere to and implement the recommendations from the recent Migration Advisory Committee (MAC) report published in May 2024. There is no point in conducting consultations and independent reviews repeatedly without implementing the recommendations. What has been done since the Augar review recommendations emerged? What recommendations have been implemented, and what has been their impact on the education sector?

Move from politics to policies: Shift away from politically motivated narratives around higher education, such as “rip-off degrees” or concerns about migration numbers due to graduate visa schemes. Focus instead on long-term policy initiatives that highlight the benefits UK higher education brings to the economy and society. Recognize UK higher education as a global asset and invest in its success in the highly competitive international market.

AMIR MICHAEL

Head of Accounting Department, Durham University Business School

Amir Michael

It is important to understand the Labour manifesto with regards to HEI’s funding model and the purpose and function of HEIs (Higher Education Institutions) from a Labour Party perspective.

One of the key matters that I expect and hope that Labour will be looking at is the home students tuition fees and maintenance loans. I don’t expect the Labour party will make any changes to the current tuition fee structure, as it is not one of the six key priorities stated by Keir Starmer. However, any changes to cap numbers of international students, which is part of the wider immigration plan, will worsen the financial health of UK HEIs, and affect their affordability. This will affect the ability to educate home business students, due to limitations of resources and capacity, which is heavily funded by international unregulated fees.

The Conservatives made very little investment in the higher education sector over the years, and this caused some radical financial difficulties to the sector.

Freezing tuition fees was one of the highlights, which didn’t help universities’ affordability to provide an excellent education and wider students experience, leading to the overreliance on international unregulated fees to fill the gap.

Brexit affected student recruitment from Europe, but even more negatively affected recruitment and retention of the best European academics. The UK’s regulations and structure didn’t help to mitigate the impact of Brexit or maintain the top HEIs’ position in rankings.

What Labour education policies excite you, and what about their platform/plans makes you wary?

The main concern with Labour, is them not having higher education as one of the key strategic priorities, as this will worsen the situation for a struggling and suffering sector. I don’t think ignoring such issues and concerns with one of the UK’s largest sectors, such as HEI, is helping. It is giving the impression that the plan is that there is no plan!

I believe that there is a room to start providing some incentives to certain business education areas and disciplines that will form a power engine to the UK economy. Investing in programmes that are not just focusing on knowledge transfer but also skills development, linking graduate business education to the key priorities of the macro growth potential of the UK economy. This investment must not be at the expense on any other programmes’ funding, but it is a ‘top up incentivisation’ to avoid any gaps in knowledge, skills, and leadership in certain contemporary business disciplines.

Another suggestion is moving towards ‘Business Sponsored’ programmes that are full funded by businesses to provide a wider scope and knowledge to current and prospective students.

More generally, it is crucial to think about moving more towards ‘Micro Credential’ education with a staggered financial burden that people can take over longer period to distribute the the financial obligation. Additionally, increasing tuition fees, by offering ‘Government Scholarships’ can support students with great potential who cannot afford to go to university.

Investing in digital education to enhance mobility and accessibility. Similarly, developing international collaborations with a wide range of nations to develop student exchange opportunities will bring students to study and be trained in the UK.

Rethinking the HEIs’ national evaluation matrices, such as National Students Survey (NSS), Research Excellence Framework (REF), Teaching Excellence Framework (TEF) and Knowledge Transfer Framework (KEF) to assess their purpose, objectives and their expected outcomes.

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