Delivering her first Budget announcement yesterday, Rachel Reeves confirmed VAT would be added to independent school fees from 1 January 2025, with business rates relief to be removed from schools that have them from April. By David Wilcock, Daily Mail.
Independent schools are predicted to lose six per cent of their pupils under Labour's VAT policy, according to a forecast published by the Office for Budget Responsibility (OBR). This would result in 35,000 pupils moving to the state sector, costing the Treasury around £300 million. Commenting on the findings, the Independent Schools Council (ISC) said it is "clear that independent schools cannot absorb VAT", adding: "We remain concerned that the OBR, like the IFS before it, has underestimated the number of children who will leave the sector, though it does acknowledge that the evidence in this area is 'limited'." By Cerys Turner, Tes. The ISC is also quoted in iNews, warning: "Tens of thousands of families are going to see their children's education disrupted." By Connie Dimsdale.
The Telegraph reports independent school parents are expected to see their fees rise by an average of £2,000 per year once the VAT policy comes into effect. Julie Robinson, chief executive of the ISC, said: “Ultimately, it is children in both state and independent schools who will lose out as a result of the Government’s haste to enact these policies.” By Pieter Snepvangers.
In an interview with Steve Holden on LBC, ISC CEO Julie Robinson reiterated concerns about the impact of the policy, particularly for children with special educational needs and disabilities (SEND), faith provision, and low-cost schools. She said: "The government has rushed to implement this policy and its failure to acknowledge the diversity of independent education - most of these schools are really small - is going to have a devastating effect on independent schools and young people alike. It's also going to have an effect on state school pupils." Ms Robinson welcomed the news of extra support for military and diplomatic families, but added that the sector had hoped to see further mitigations or a delay to implementation.
Dr Rebecca Ashcroft, head of Red House School, comments on the Budget in an article for The Independent. She warns: "As the head of a co-educational private day school, I can say with some certainty that these decisions threaten not just the existence of independent schools – but the very ethos of educational choice that underpins our society." Urging the government to "reconsider its approach and engage in meaningful dialogue with stakeholders", she writes: "Let us advocate for a fairer approach that respects the unique contributions of independent schools. Together, we can ensure that every child, regardless of background, has access to the quality education they deserve."
Lisa Kerr, the principal of George Watson's College, responds to the Budget announcement in The Scotsman. She warns: "These policies, brought in with a staggering lack of consultation with the people most affected, will not only fail to achieve their aims but, because they are based on a fundamental lack of understanding of the value that independent schools bring to the economy and to our local communities, they will diminish that value as a result."
The VAT policy could result in 1,800 more pupils entering Scottish state schools, based on modelling predicting a six per cent drop in independent school enrolments. The Scottish Council of Independent Schools (SCIS) has said the impact could be more severe north of the border because of lower income levels compared to parts of England. By Calum Ross, The Scotsman.
In an article for The Independent, Zoë Beaty talks to independent school parents who are planning a legal challenge to the VAT on fees policy. Johanna, an NHS nurse whose son moved to an independent school from the state sector, says: "It’s going to cost the government more to educate him in a state school because he needs a teaching assistant with him all the time."
The chancellor has announced £2.3 billion more funding for schools, including £1 billion to support reforms to the SEND system. National insurance employer contributions are increasing by 1.2 percentage points as part of a £40 billion package of tax rises. By Freddie Whittaker, Schools Week.
A multibillion-pound funding injection pledged for schools in England will be quickly swallowed up, experts have warned. Jon Andrews, the head of analysis at the Education Policy Institute, said: “Given the spending constraints imposed by government and competing priorities, the limited offering is not unexpected, but there are systemic issues that the government still needs to address. In particular, despite the additional investment, the special educational needs system remains in a perilous state, which risks services for some of our most vulnerable children being cut.” By Sally Weale, The Guardian.
Tes provides a summary of the key details for schools from this year's Budget. By Jasmine Norden.