VAT on fees policy 'poses a very real threat to schools', warns ISC CEO
In an interview with Independent School Management (ISM), chief executive of the ISC Julie Robinson talked about the government's VAT on fees policy, her own career path and the challenges facing schools today.
During the comprehensive discussion, Ms Robinson referenced the policy's mid academic year start date, saying: "It is hard for schools, but we recognise this is a policy the government is committed to. While we will continue efforts to oppose the policy on principle and press for exemptions and mitigation, schools need to prepare for January implementation. Budgets and fees will have been set for the next academic year, so schools and their families have very little time to review these and make adjustments."
Ms Robinson explained that the Independent Schools’ Bursars Association (ISBA) will provide updated guidance over the coming months informing schools of the practical steps they can take.
"HMRC is expected to provide guidance too, since they have a large number of schools to register for VAT in a very short timescale. We encourage schools to maintain clear and regular communication with parents, ensuring all are abreast of the key facts and schools’ plans for the future," she said. Ms Robinson also emphasised that the ISC continues to engage with the government on the consequences of the policy for schools, families and communities and, in particular, pupils with special educational needs and disabilities (SEND), faith schools and specialist arts education.
Ms Robinson continued: "The VAT on fees policy poses a very real threat to schools, and it is important to bring attention to those most at risk under the policy while challenging harmful stereotypes about independent schools and the families that use them.
"It is also important that we do not create divisions between state and independent schools. All types of school have value across the education ecosystem, serving the children in their care. We share Labour’s goal of a great education for every child, and we’re keen to work with the new government to build upon the fantastic work already being done within the sector in the form of cross-sector partnerships. These mutually beneficial programmes, which involve state schools, independent schools, charities and local organisations, provide valuable educational opportunities to children and young people across the country."
On the wider implications of the removal of business rates relief, Ms Robinson said: "Labour has said that while it no longer intends to remove the charitable status of independent schools, it will scrap business rates relief from those schools that have them from April 2025. Though this would not apply to all independent schools, it has implications for the charity sector more broadly. It would create a two-tier charity system, setting a worrying precedent that any charity seen in some way as ideologically opposed to the government of the day could be subject to extra tax."
The interview concluded with a discussion on the range of complex issues schools are contending with. Ms Robinson told ISM: "Schools also face wage inflation including increasing teacher pension costs. Beyond financial challenges, schools are navigating a variety of topical education issues, including potential changes to the relationships, sex and health education curriculum, calls to ban mobile phones in the classroom, mental health concerns and debates over the use of artificial intelligence in exams and day-to-day school life."