ISC Daily News Summary

ISC Daily News Summary 20 February 2025

Inflation: Ministers were warned of 'unforeseen consequences' of rushing VAT on fees policy, says ISC CEO

Top story

Reform UK has said rising inflation is proof Labour “lied” about the impact of its VAT on fees policy. Speaking to The Telegraph, Richard Tice, deputy leader of Reform UK, said: "We now see more children forced into the state sector, especially more SEND pupils, causing huge cost increases for local authorities. There is now pressure on state teachers and more independent schools closing already. This is truly disastrous." Commenting on the rising inflation figures, chief executive of the Independent Schools Council (ISC) Julie Robinson said: “The Treasury and the Department for Education were warned that rushing in this policy would have unforeseen consequences that went beyond independent schools and the parents who choose them. Local councils, state schools and now the economy have all been negatively affected by this unprecedented tax on education. We urge the government to think again on the other damaging tax measures it is considering for independent schools.” By Pieter Snepvangers. Ms Robinson is also quoted in the Daily Mail, by Jessica Clark and Eleanor Harding. 


Families considering leaving the UK amid VAT on fees policy, surveys find

Independent sector

Labour’s decision to impose VAT on school fees has led some wealthy parents to consider moving abroad, the bi-annual Saltus Wealth Index has found. According to the data, 28 per cent of high-net-worth individuals said they are contemplating leaving the UK, with 15 per cent specifically citing VAT on fees as a reason. The findings also suggest that the tax policy is having wider and potentially long-term effects beyond immediate financial strain on parents, with 42 per cent of parents reporting disruption to their child's schooling; 11 per cent planning to switch to state schools; and 10 per cent considering cheaper independent options. Speaking to The Times, Saltus partner Mike Stimpson said: "We can now see that the number who say they are likely to have to remove their child has remained significant since the policy was first introduced, and now that it has been enacted the data suggest these parents may well go ahead with pulling their children out." By Georgia Lambert. 

A survey of parents whose children attend independent schools in the UK has found that half plan to move out of the country in the next few years. Conducted by international schools group GEMS Education, the survey suggests that around one in 10 parents intends to relocate abroad to avoid the addition of VAT on fees. Exploring what one expert has described as a “growing global trend” among affluent families who are seeking alternatives to “increasing uncertainty and perceived instability at home”, the survey also found that around 73 per cent of respondents said they had been thinking of moving before news of the changes around VAT. By Henry Hepburn, Tes


House of Commons written answer: Business rates and VAT on fees

Political

In a written question in the House of Commons, Conservative MP Blake Stephenson asked if the education secretary will make an assessment of the potential impact of (a) business rates on independent schools and (b) VAT on school fees on economic growth. Responding, schools minister Stephen Morgan said: "Economic impacts of the policy to apply VAT to private school fees are covered in the tax information and impact note (TIIN) that the government has published on GOV.UK. The publication can be accessed here. The Ministry of Housing, Communities and Local Government (MHCLG) has introduced the Non-Domestic Rating (Multipliers and Private Schools) Bill to remove eligibility to business rates relief from private schools that are charities. MHCLG has published an impact note alongside the bill, and this can be found here." Hansard.


Curriculum review should ‘incentivise’ schools to teach employment skills, says NFER study

Teaching and learning

Ministers should “incentivise and support” schools to promote the development of skills such as communication, organisation and problem-solving through its curriculum review, a study led by the National Foundation for Educational Research (NFER) has suggested. If “cognitive and behavioural” skills gaps are identified and addressed during education, this could support “improved labour market outcomes”, it said, adding that inequalities in cognitive and behavioural outcomes in young children “become more entrenched and harder to impact as they get older”. By Freddie Whittaker, Schools Week. 


Addressing the challenges facing special schools and AP settings

SEND

Writing in Tes, Warren Carratt warns that special schools and alternative provision (AP) settings face major challenges due to unclear admissions processes, inadequate funding, and a lack of a clear strategy. On funding, he says: "The absence of health funding in the special educational needs and disabilities (SEND) system should be considered a national scandal, especially when child and adolescent mental health services are in such a state of disrepair." Mr Carratt is the CEO of Nexus Multi-Academy Trust.


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