VAT on fees: 'Don't forget the ripple effect'

Posted on: 26 Jun 2026
Posted by: ISC Press Office

An ISC spokeswoman has highlighted the impact of the government's VAT on fees policy on local communities and businesses that depend on independent schools.

An article in the Daily Mail examines the impact of the government's VAT on fees policy on schools and their wider communities. It cites figures from the Independent Schools Council (ISC) revealing that more than 30,000 pupils have already left the independent sector – twice the number predicted by the government – and warns school closures are resulting in lost jobs and children being displaced.

Speaking to the paper, a senior ISC source says: "We always expected a two- to three-year lag because parents already in the system want to get to the next phase." 

An ISC spokeswoman later warns of the "ripple effect", pointing to the impact on local shops, cafes, laundries and other businesses that feed off a school.


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