ISC Daily News Summary 18 June 2024

Sir Keir Starmer was interviewed by Nick Ferrari on LBC about the Labour Party's plans to add VAT to independent school fees. Michelle Catterson, head of Moon Hall School, Reigate, highlighted her concerns about the effect the policy would have on children with special educational needs and disabilities (SEND), asking: "Has Sir Keir fully thought this policy through and does he know what the true impact of these plans could be on these vulnerable children and indeed their families, who have already been through a traumatic time simply fighting for what their child needs?" Sir Keir defended his plan to add VAT to fees, saying: "It's a tough choice, there isn't a lot of money around, but it's a choice we've made to ensure that we have the teachers we need in our state secondary schools." Referencing how she had written to both the Labour leader and Bridget Phillipson to no response, Ms Catterson said: "I think it's blind ignorance to push through with this plan and avoid speaking to those in the sector such as myself who have this expertise." The segment also featured comments from Lindsey Hughes, headmistress of Channing School, and Shaun Fenton, headmaster of Reigate Grammar School, warning of the negative impact the proposals could have on state schools.

iNews explores how Labour's tax plans risk inadvertently creating a group of "trapped children", whose parents are unable to afford the 20 per cent increase in fees but who cannot go to state school because there are not enough local places. The paper speaks to Kirstie McCormick, a parent with two children, one of whom has severe cerebral palsy and required 24-hour care. She says she would have to withdraw her younger son from his independent school if the policy came into effect, though she cannot find a local state school place for him. She adds: “I feel I’m being penalised for trying to do the best for my family in very difficult circumstances.” By Charlotte Duck.

Independent school teachers have been warned their pensions could be at risk if Labour imposes VAT on school fees. One major teaching union has reportedly started informing members that with schools forced to cut costs if VAT is added onto fees, pension contributions could be on the list to re-evaluate. David Woodgate, chief executive of the Independent Schools’ Bursars Association (ISBA), has also cautioned that Labour’s policy would leave schools looking at “every level of their cost base”, including considering lower pension contributions, dropping less popular subjects and making redundancies. By Rob White, The Telegraph.

The Financial Times reports the majority of state schools in England have enough places to absorb an exodus of independent school pupils, based on 2022-2023 data from the Department for Education. According to analysis conducted by the paper, 85 per cent of local authorities have more unfilled places in state primary and secondary schools than independently-educated pupils. Rudolf Eliott Lockhart, chief executive of the Independent Schools Association, is quoted saying: “It is all very well saying there are enough places to accommodate pupils but if that place in a state school is many miles away from where a child lives that is not much good. If there are places in state schools, they may not be in a part of the country where there is a need to absorb pupils moving from the independent sector.” ISC CEO Julie Robinson added that it is "not certain that there will be the right spaces in the right places".

Speaking on the podcast The Rest Is Politics, shadow education secretary Bridget Phillipson talked about her overall opinion of independent education and why she is championing Labour's policy to add VAT to school fees. When asked if she was thinking about how to support children who would be transitioning into the state sector, Ms Phillipson responded saying: "[Labour] anticipate little effect from the policy, mainly because private schools have whacked up their fees way beyond inflation year after year and there hasn’t been a shift in the numbers." She added: "Schools can seek to absorb that cost... State schools in recent years have had some really tough choices to make and I think private schools might like to consider how they cut their cloth." By Samantha Booth, Schools Week.

Stephen Seidler from Cambridgeshire has written to The Telegraph expressing his agreement with Jo Thomson, the head of Clayesmore School, on the impact VAT would have, saying: "Many independent schools spend between 70 and 80 per cent of their revenue on salaries, so any sharp fall in income is likely to lead to a reduction in the employment of cooks, cleaners, gardeners, ground staff, administrators and teachers: the very working people whose interests Labour claims to represent."

In another letter, Deborah Maingay from Surrey writes: "Those who send their children to a private school have already contributed to the state system while freeing up a space in it for another child. Will Labour eventually impose VAT on private healthcare fees, too?" Both letters are at the bottom of the page.

Writing to The Times, Nicholas Allen, a former chairman of the Independent Association of Preparatory Schools (IAPS), says that independent schools will be putting in place "contingency plans" to survive Labour's tax plans, including deploying artificial intelligence in teaching to reduce their total running costs.

In a separate letter, Dr Richard Connaughton questions Labour's promise "that there would be no raising of VAT over the next parliament". He writes: "Imposing VAT on school fees will inevitably result in some children moving to state schools. What is the plan to ensure the continuation and matching of studies toward GCSEs or A-levels?" Both letters can be found near the top of the page.