Philip Britton, headteacher of Bolton School, has warned of the impact VAT on fees will have on the funding of scholarships and bursary provision. Currently, one in five senior students at the independent school receive financial support to cover their fees, with half of those having their full tuition paid for. The school had intended to increase this number to one in three by 2030, but this is no longer possible as a result of the tax policy. Speaking to The Telegraph, Mr Britton said: "From one in five to one in three will be much more difficult and will be slowed. That clearly is a detriment to children in the locality. That is a direct impact of VAT.” He added: “Schools have a very simple business model in terms of pupil numbers, term fees and then the need to maintain an estate and employ staff. In those capital projects, we may see schools making different choices for a few years until the landscape steadies itself.” By Madeleine Ross.

Two independent schools have announced they are planning to close amid the government's VAT on fees policy. BBC News reports that Loughborough Amherst School is proposing to permanently close at the end of the academic year on 4 July, citing "financial challenges" that include the introduction of VAT on school fees. Loughborough Schools Foundation, which runs the school, told parents a final decision would be made following a staff consultation, which is expected to end in March. By Sonia Kataria. Maidwell Hall, a 114-year-old co-educational prep school in Northamptonshire, announced yesterday that it would shut in July after “external factors” exacerbated financial problems. The school said it had been operating at a loss for several years but “received further blows last November, when the announcement of VAT on school fees and the elimination of business rates relief was confirmed in the Budget”. A statutory consultation on the proposed closure is being launched. Several readers share their opinions on the news, with one saying: "As an old boy of Maidwell Hall, this is tragic news." By Poppy Wood and Pieter Snepvangers, The Telegraph.

Writing in The Telegraph, Reform UK leader Nigel Farage criticises the government's VAT on fees policy as "illogical, nasty and destructive" and says it penalises parents who already pay taxes for state education. He writes: "What is so twisted and dishonest about Labour’s VAT policy is its pretence that any money it raises will benefit the state system... This is a fantasy." Mr Farage claims the policy's ultimate goal is to force independent schools to close, and warns: "The effects of private school closures will be job losses or income curtailments. It’s not just teachers who will end up in the dole queue but also domestic staff. Freelancers and small businesses who supply the school with equipment, food, music lessons and so on will also be hit financially."

In a column for The Mirror, assistant editor Darren Lewis argues that imposing VAT on independent school fees unfairly penalises parents who make sacrifices to provide better educational opportunities for their children, especially in light of systemic disadvantages faced by children of colour in state schools. Mr Lewis contends that the tax policy risks widening the educational gap, pushing more children into underperforming state schools.

Several schools in membership of the ISC's constituent associations are mentioned in today's news coverage. 

In a written question in the House of Commons, shadow education secretary Laura Trott asked the chancellor how many applications for VAT numbers for independent school fees the Treasury has (a) received and (b) granted since 5 July 2024.

Responding, Exchequer Secretary to the Treasury James Murray said: "HMRC publishes data on the VAT population by sector on an annual basis. The latest statistics can be found here. VAT will apply to private school and boarding fees for terms starting on or after 1 January 2025. However, this does not mean that every school needs to have registered for VAT by this date. The exact date a school needs to register for VAT depends on the value of school fee payments for terms starting on or after 1 January 2025, and the date the school receives those payments. A significant number of schools were already registered for VAT prior to the confirmation of this policy at Budget. HMRC has taken action to support private schools through the change: providing detailed guidance; running webinars; and allocating additional resource to process VAT registration applications. HMRC continues to engage with private schools and the organisations that represent them." Hansard.

The Council of British International Schools (COBIS) Annual Research Survey has highlighted a number of growing trends in international schools, including a notable rise in artificial intelligence (AI) education. Speaking to Tes, COBIS chief executive Colin Bell said that schools are embracing AI with “excitement and a hunger to equip students and staff,” adding that those who fail to adapt risk falling behind. By Dan Worth. 

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