The House of Lords voted on Monday to reject the government’s plans to remove business rates relief from independent schools run by charitable trusts. Julie Robinson, chief executive of the Independent Schools Council (ISC), welcomed the news but expressed concern over the impact of ministerial decisions on the wellbeing of independent school leaders and staff. Quoted in Tes, she said: “We are pleased that the Lords have rejected the creation of a two-tier charity system and the imposition of an additional tax on education. We remain extremely concerned about the impact these political decisions made by the government about independent schools are continuing to have on the wellbeing of school leaders, bursars and governors.” Independent School Management Plus carried further remarks from Ms Robinson, who said: “As our colleagues in the state sector also face funding cuts, there are also reasonable worries about a narrowing curriculum across education, and what that might mean for the future of subjects like Classics, modern foreign languages and music. We remain committed to working with the government on their priorities for education and maintain that the best way to do this is through collaborative working rather than punitive tax measures.” 

The Finance Bill was given a Second Reading during a debate in the House of Lords yesterday. Conservative peer Baroness Neville-Rolfe warned that, alongside imposing VAT on fees, ministers "are removing charitable business rates relief for independent schools in England, meaning they will, for the first time, face the additional burden of local business taxes from April 2025". She added: "To be clear, this is a new, punitive tax on education. Its imposition part-way through the academic year will cause - and has already caused - significant disruption to the education of thousands of children. It harms parents on modest incomes who have worked hard to send their children to the school they believe is best suited to them, and will make independent schools unaffordable for military families, who make the greatest sacrifice by serving in our Armed Forces."

Highlighting the negative consequences of taxing education on cross-sector partnerships and sports provision in the independent sector, with particular reference to Millfield School, Conservative peer Lord Moynihan said: "The cost savings urged by government on independent schools to pay for the heavy tax increases, set out by my noble friend Lady Neville-Rolfe, are predicted to have a serious impact on the dual use of their excellent sports facilities by local communities. Conservative peer Baroness Lawlor highlighted concerns regarding the impact of taxing fees on the education of children with special educational needs and disabilities (SEND) in the independent sector. She said: "Under the Bill, VAT will be levied on independent schools, including those which educate children with special needs. Early reports have confirmed that they are cutting staff numbers. They are also reducing the number of bursaries and the range of subjects taught. Pay and pensions are being cut, as well as jobs, and I am afraid that school closures have already been announced—we have had nine announced so far this year."

Echoing concerns, Liberal Democrat peer Baroness Kramer warned: "We absolutely cannot support a tax on education through the introduction of VAT on independent school fees. Our concerns lie particularly with the thousands and thousands of families with children with SEND who do not have an education, health and care plan and who have turned to independent schools because they cannot find available state provision. In some cases, this is because the education and health care plan (EHCP) assessment process is so long, onerous and costly, but it is also because the hurdle for an EHCP is so high that many children fail to get the early help they need to prevent them falling behind unless they switch to the private sector, and now the VAT costs will further penalise those families." The full transcript of the debate on the Finance Bill, which was read a third time and passed, can be read in full at Hansard. 

During a debate in the House of Lords yesterday on the Armed Forces Commissioner Bill, Conservative peer The Earl of Minto said: "I impress on the Minister that charging VAT on private school fees for military families will make becoming or remaining a service member less attractive, not more. In response to this and in the interest of fairness, the government have decided to uprate the continuity of education allowance. However... there is real concern that this uprating will not be sufficient to cover the new higher fees. Unfortunately, this has the potential to negatively impact both recruitment and retention." The Lord Bishop of Norwich concurred with the comments, and stated: "As has already been said by other noble Lords, continuity of education is vital for a family that may often move around a lot during the career of service personnel, when one or both of the parents may be on deployment. We must not forget the small number of wonderful state boarding schools that offer important support for service families." Referencing concerns over the impact of taxing fees on children with SEND, Conservative peer Lord Wrottesley warned that "there is no doubt that VAT on school fees will have an adverse impact on services families", before asking: "Why are we not going to exempt members of His Majesty’s Armed Forces from this additional financial burden? It may - I suggest that it will - dissuade people from starting or even going on to build a career in the Armed Forces." Labour peer Lord Coaker thanked the Lords and Baronesses for their contributions to the debate, which will continue on Monday.

In a written question for the Treasury, Shadow Secretary of State for Levelling Up, Housing and Communities Kevin Hollinrake asked what assessment has been made of the potential impact of liability for business rates on the commercial viability of nurseries located within the premises of an independent school. Responding, Exchequer Secretary to the Treasury James Murray said: "As the government confirmed at Autumn Budget 2024, schools that satisfy the definition of a private school will lose any entitlement to charitable rate relief entirely. This may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools. Standalone nursery schools, where they have their own business rates assessments, are excluded from the legislation and, where applicable, retain their charitable rate relief. This approach best ensures consistency with the underlying policy intent." Hansard. 

Each day a pupil misses school costs them £750 in future wages, according to government research, with figures suggesting 150,000 pupils are absent more than half of the time. One child in five is classed as persistently absent from school, meaning they miss at least one day of school each fortnight. This represents 1.6 million children, more than twice the number before the pandemic. By Max Kendix and Georgia Lambert, The Times. 

Schools Week takes a closer look at the government's report, which has also found that pupils who attend school nearly every day in Year 11 are almost twice as likely to achieve a grade 5 in English and maths GCSE than those who miss between 5 and 10 per cent of classes. By Rhi Storer.

The annual cost of nursery care for children under two in England has fallen for the first time in 15 years, according to children's charity Coram. The decline coincides with the government's phased rollout of its funded childcare scheme, which will extend 30 hours of free childcare per week to all eligible working parents of pre-school children from September. Despite the news, a number of nursery staff and childminders have told BBC News they may be forced to leave the scheme as government funding fails to keep pace with rising costs, including National Insurance increases from April. Education secretary Bridget Phillipson has said delivering a better early-years system "is a top priority". By Vanessa Clarke. Data analysis by Wesley Stephenson.

The Council of British International Schools (COBIS) has revised its Accreditation and Compliance Standards, placing greater emphasis on gathering insights into schools' efforts regarding Diversity, Equity, Inclusion, Justice, and Belonging (DEIJB). Colin Bell, CEO of COBIS, said the organisation was “proud to see DEIJB being placed at the forefront of these updated standards, acknowledging its increasing significance across the sector”. By Dan Worth, Tes. 

iNews explores the initial findings of the government's Curriculum and Assessment Review and how it could soon change England's state schools. Published earlier this week, the review included the suggestion that GCSEs could include fewer exams, and that the English Baccalaureate (EBacc) GCSE school performance measure could be abolished. Speaking to the paper, one expert said the end of the EBacc could mean that decline in language learning at GCSE level is “accelerated”. By Connie Dimsdale. 

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