ISC Daily News Summary 2 January 2025

Julie Robinson, CEO of the Independent Schools Council (ISC), has warned that both state and independent schools will face "significant damage" as a result of Labour's tax policy. Ms Robinson said: "The extent of pupil movement and school closures will become apparent over the next few years, hurting children, families, local businesses and driving up competition for the best state school places. This was avoidable and we continue to seek to work with the government, supporting educational opportunities together. A joint approach would be preferable to undermining a section of education that has much to offer." The article references research by the Independent Schools' Bursars Association (ISBA), which found that 11 per cent of schools may contemplate closing as a result of the VAT policy. By Harriet Line, Daily Mail.

Ms Robinson appeared on BBC Radio Surrey this morning, where she discussed the impact of the tax changes on schools and families in Surrey and across the country. She explained how the average independent school operates on tight margins and cannot easily stretch to afford the extra cost. Concluding the interview, she said: "We feel that it's only fair that parents can choose the school that's right for their child and not have to pay an extra tax, which, after all, does not exist across the world on education."

Talking to Qasa Alom on BBC Radio 5, the ISC CEO said: "The amount of direct revenue [the policy] is going to raise for state schools, if any, is very, very uncertain, and at the same time it's going to cause huge disruption for thousands of families and children, especially those in low-fee faith schools, specialist arts education, single-sex schools, or those who need special needs support."

Ms Robinson also appeared on LBC, where she cited ISC survey findings that show the number of pupils expected to leave independent schools is nearly four times the government's estimate for this year alone. She continued: "[This policy] doesn't take into account the reality that many parents in schools cannot afford this tax and that's going to displace children into the state system, where we know state schools - through no fault of their own - are already strapped because of financial pressures."

Speaking to Rosie Wright on Times Radio, Ms Robinson discussed concerns regarding the availability of state school spaces in the right places across the country, warning this is "a real concern for local authorities".

Labour's pledge to recruit 6,500 extra teachers could cost £5 billion a year, according to the National Foundation for Educational Research (NFER), amid warnings the government could fail to meet its target by the end of the current parliament. A report from NFER states that the government would have to raise teacher salaries by 10 per cent a year for the next two years to meet its recruitment target, equating to £5 billion annually - far more than the £1.8 billion a year the government says it will raise from adding VAT to independent school fees. By Nicola Woolcock, Max Kendix, and Chris Smyth, The Times.

School fees are set to increase by more than the government predicted as the VAT policy takes effect, The Telegraph reports. In October, the Treasury claimed fees would rise by 10 per cent on average, but a Telegraph analysis of 964 independent schools has found that half are increasing fees by 15 per cent or more, while a fifth are increasing fees by the full 20 per cent. Speaking to the paper, Julie Robinson warned of an exodus from independent schools, saying: "Parents are already opting out in greater numbers than predicted, and more will follow. As schools close and the money promised does not materialise, we hope the government reflects and reverses their decision, choosing instead to focus on how all schools can work together for the benefit of 100 per cent of the nation’s children." By Ben Butcher, Pieter Snepvangers and Ben Riley-Smith.

BBC Verify has claimed that independent school fee increases resulting from the new tax changes will not affect parents' choices around their children's education. Ben Chu, from the broadcaster's fact-checking unit, suggested yesterday that fee increases over the past two decades had not made any significant difference to parental decisions on whether to send their children to independent or state schools. ISC CEO Julie Robinson is quoted, saying: "Parents are already leaving independent schools in greater numbers than estimated due to this unprecedented tax on education. We remain concerned about the outsize effect this policy will have on children who need SEND [special educational needs] support, on families of faith, and on young people receiving world-class arts education." By Patrick Sawer, The Telegraph.

The Treasury has been accused of breaching impartiality for describing the VAT on fees policy as ending a "tax break". Although education has not previously been taxed in the UK, the Treasury has claimed in social media adverts and on gov.uk that "tax breaks for private schools will end from 2025". In response, former home secretary Dame Priti Patel said the Treasury has "lost its impartiality and objectivity", while Jesse Norman, a Conservative MP and the former paymaster-general, said "the absence of a charge is not a tax break". Rudolf Eliott Lockhart, chief executive of the Independent Schools Association (ISA), added: "It's not a tax break. VAT is a tax on parents not schools. It won't raise the sums Labour claim and it won't lead to 6,500 new teachers. It will close small, lower-cost schools and special educational needs schools." By Nicola Woolcock, The Times.

Speaking to The Telegraph, Monica, a single mother in Aberdeen, explains how her family will be impacted by VAT on fees. Monica earns less than £12,500 a year, and her son's independent school fees will rise to over £4,000 as a result of the tax policy. She says: "The stress of potentially having to uproot my child from school where he is thriving is overwhelmingly sickening, and it's putting his future, and our stability, at risk." By Pieter Snepvangers.

The Scottish government raised a catalogue of concerns with the Labour government at Westminster over its plans to impose VAT on independent school fees, according to The Scotsman. SNP ministers publicly support the policy, but officials called for multiple amendments to the draft legislation in its response to a government consultation. Lorraine Davidson, chief executive of the Scottish Council of Independent Schools (SCIS), said: "As this document obtained by The Scotsman highlights, the education tax being imposed on Scottish independent schools has taken no account of the many differences in the Scottish education system. The Scottish Council of Independent Schools laid out clearly in its own consultation response to the Treasury how the tax on learning would harm all parts of Scottish education." By Calum Ross.

The Telegraph features letters from readers in response to the government's tax changes for independent schools. Reflecting on their own experience, Robin SeQueira from Dorset writes: "I paid my daughter’s fees by forgoing annual holidays and a new car. An increase of 20 per cent, however, would have meant moving her to the local state school – if it was able to accommodate her." Claiming the policy will make independent schools "the preserve of the very wealthy", they conclude that Labour's approach "will do little to bring more fairness to the education system".

In a separate letter, Harry Whitbread, an independent school parent from Oxfordshire, warns: "Through this misguided attempt at social engineering, [the government] risks damaging a world-class national asset and a crucial part of the pipeline that feeds Britain’s tertiary education system." Both letters can be found a quarter of the way down the page.

Writing to The Times, several readers express their concerns over Labour's tax policy. Nick Ritblat from London warns: "Breaking the private sector linkages between aspiration, reward and self-sufficiency can only reduce growth, reduce the tax take and cause public sector spending to spiral. The wealthy will survive, but the prime minister’s myth-making will cause huge distress for everyone else."

Mark Mortimer from Perth comments on the "often overlooked, but vital" role of independent schools, and suggests that the VAT policy is an attempt by the government to remove the independent sector's voice from the wider educational debate.

Lucy Hall from Tunbridge Wells calls for clarification on the prime minister's use of labels such as "middle classes" and "workers", saying: "I went to a state school and my brother had a scholarship to a private school nearby. Both communities were successful as educators and the resources and expertise in both schools were shared and, dare I say, celebrated. Isn’t it time to applaud and recognise excellence and access for all, rather than obsess over outdated class and worker stereotypes?"

In a separate letter on the purpose of education in the UK, Ben Horan, headmaster of Prior Park College in Bath, describes the national curriculum as "a functional document, taking little pride in Britain". He continues: "A properly national curriculum should be able to celebrate as well as educate. Doing so might help to unite us more than a reviewed curriculum which appears likely to divide us yet further in the name of diversity."