ISC Daily News Summary

VAT on fees: Ministers considered exemptions for boarding schools, exam students and pupils with SEND

Court documents revealed yesterday, the third and final day of the judicial review of Labour's VAT on fees policy, have shown that government officials considered exempting boarding schools, children with special educational needs and disabilities (SEND), and exam-year students. The government, which disclosed the documents while defending its tax policy, decided the exemptions could lead to complications and less money coming in. This point was argued by Sir James Eadie KC, who was representing the Treasury, HM Revenue & Customs and the Department for Education in court. Sir James stated that the policy's primary goal was to raise funds and that ministers knew adding VAT to fees would make independent schooling unaffordable for some parents, leading to pupil displacement. He told the court: "It is revenue raising for a purpose. To help fund the government’s priorities for education and young people, including investing in state education." The hearing was before Dame Victoria Sharp, Lord Justice Newey and Mr Justice Chamberlain. A decision is expected in writing at a future date. By Nicola Woolcock, The Times.  

• The Times

Parliamentary debates and written answers: Independent schools

Ministers discussed access to sport and PE in schools during a Business of the House debate in the House of Commons yesterday. Warning of the impact of the government's business rates relief plans, Conservative MP Rebecca Paul said: "We are seeing evidence that the decision to end business rates relief for independent schools is having damaging consequences. Some such schools now question whether they can continue to operate community sports facilities, including school playing fields. Lest we forget, those facilities are used not just by the schools, but by local primary schools, community groups, youth sports teams and families. I see the benefits of that on my doorstep. Many children in my constituency attending local primary schools are learning to swim and getting the benefit of other sports facilities at their local independent school. If this policy ends up forcing the sale or closure of those facilities, it will only have succeeded in reducing access to sports for the very communities who most need it." 

In a written question in the House of Commons, Conservative MP Blake Stephenson asked, with reference to last October's Impact Note on removal of eligibility of independent schools for business rates charitable relief, why ministers did not model the impact on economic growth. Jim McMahon said a detailed analysis of the effects of business rates changes had been undertaken, adding: "The impact note published on 13 November 2024, alongside the introduction of the Non-Domestic Rating (Multipliers and Private Schools) Bill, provides detailed analysis of the average business rates change per pupil for private schools; distributional analysis by region, religious ethos, and pupil population; as well as anticipated pupil movements, associated costs, and equalities impacts." 

In the House of Lords, DUP peer The Lord Weir of Ballyholme asked what estimate has been made of the additional cost of children who transfer into the state education system as a result of changes to business rates for independent schools. Responding, Labour peer Baroness Smith of Malvern replied: "The government’s impact note on the removal of eligibility of private schools for business rates charitable relief estimates an extremely limited impact from the business rates policy taking effect, with any movement estimated to represent 0.03 per cent of the total state school pupil population in England. This impact note is attached and can be found here. Removing the eligibility for business rates charitable relief from private schools will raise approximately £140 million per year. Based on average per-pupil spending in England for the 2024/25 financial year, the government expects the revenue costs of pupils entering the state sector as a result of the business rates measure in England to steadily increase to a peak of around £20 million per annum after several years." Hansard.

During a debate in the Welsh Parliament in which party spokespeople posed questions on education, Conservative MSP Natasha Asghar highlighted the "incredibly important role" played by independent schools, but expressed concerns over the "common misconception", which would suggest "that these schools are only for the rich". Referencing examples of schools in her own constituency, she said "the reality... couldn't be further from the truth". Expressing concern over Labour's tax policy, Ms Asghar said: "The decision to impose VAT alone has had a major impact on the sector, with parents pulling students out of school, applications for the upcoming year dropping, teaching staff being axed, and subjects being slashed. Labour’s Treasury Minister, Torsten Bell, has admitted that around 100 private schools will be forced to close because of this tax rate, although the Independent Schools Bursars Association believes that the true number is actually set to be around 300." To the question "I’d like to know what assessment has the Welsh Government made of the impact Labour’s VAT hike will have on our already under pressure and underfunded Welsh state schools", Cabinet Secretary for Education Lynne Neagle replied: "In terms of the analysis, I can assure you that my officials monitor carefully the demand on the school system... We actually have a surplus of places in Wales in our schools, so there is plenty of room to accommodate any other children who want to move to our state schools." Prior to its conclusion, the provision and funding of education for pupils with special educational needs and disabilities (SEND) was also discussed. Welsh Parliament. Scroll to 14:40 for Ms Asghar's remarks.

Safety fears 'feeding into greater school absence rates amongst girls'

Girls in England are feeling less safe at school than they did pre-Covid and are more disenchanted with their education, according to research from University College London (UCL) based on data from an international study of pupils. Although the results from the international survey suggest pupils’ feelings of belonging, safety and pride have fallen in many countries since 2020, the study by UCL found that England had one of the biggest drop-offs among girls in Year 9, and was significantly lower than among boys. By Richard Adams, The Guardian.

• The Guardian

Councils spending £18 million on 'failing' independent special schools

Councils spent £18.1 million last year on placements at independent special schools that repeatedly failed standards inspections, a Schools Week investigation has found. At least four councils each spent more than £1 million, with Surrey County Council alone paying nearly £6 million, according to the paper. Claire Dorer, CEO of the National Association of Special Schools, condemned successive governments for a "systematic failure" to address the special educational needs and disabilities (SEND) crisis. She warned that struggling schools may have to keep placements due to a lack of alternatives but stressed there is no evidence linking issues in a few schools to independent special schools more broadly. By Rosa Furneaux.

• Schools Week

Head warns over children as young as seven having smartphones

Children as young as seven are being given smartphones, with some primary school pupils viewing harmful misogynistic content, headteacher Sophia Dover has said. Staff at Ms Dover's school, Cheriton Primary in Kent, are preparing to implement a smartphone ban in the autumn after experiencing problems with pupil WhatsApp groups and social media sites such as Snapchat. Ms Dover is supporting calls for a national ban, citing examples from another school where pupils set up an "Andrew Tate club", based on the self-proclaimed misogynist, after consuming harmful content on social media. By Patrick Barlow, BBC News. 

• BBC

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