Independent schools are appealing to the Treasury to delay the imposition of VAT on school fees until September 2025. The schools argue that a January implementation could cause significant disruptions.
In a letter to the Treasury, headteachers, governors, and bursars from around 50 schools expressed concerns over the short consultation period and potential consequences for both private and state schools.
Concerns Over Short Consultation Period
Independent schools are set to raise fees by up to 20 per cent starting in January, following a recent government consultation on this policy. The schools have requested a postponement of the policy until September 2025 to allow for adequate planning and mitigation of potential impacts.
A group led by Jamie Harle, bursar of St Piran’s School in Berkshire, and includes representatives from schools such as LVS Ascot, Mount Kelly in Devon, and Stafford Grammar School, criticised the short consultation period. They noted that it overlaps with summer holidays, leaving insufficient time for meaningful consideration.
Potential Overwhelming of State Schools
The letter to the Treasury highlights the risk of overwhelming state schools with an unexpected influx of students if the VAT implementation proceeds as planned in January. This mid-year surge could lead to significant disruptions, possibly even forcing some private schools to close.
Harle stated, ‘The government’s half-hearted attempt at a consultation, most of which runs over school holidays, pays lip service to considering the full consequences of ambushing state schools with a mid-academic year move of pupils into the state sector that has not been planned or even forecast for.’
Impacts on Both Private and State Sectors
Jamie Harle also mentioned that independent schools are already beginning to close.
He criticised the government’s rush to impose VAT on private education without sufficient consideration, indicating that such moves could lead to disruptions in both private and state sectors.
A thorough public consultation would have been conducted had the government proposed similar changes to the healthcare sector, according to Harle.
Inadequate Consultation Period
The letter to the Treasury points out that the consultation period is three weeks shorter than a previous consultation on the teacher pension scheme. This discrepancy raises concerns about the adequacy of the current process.
The group argues that the timing of the consultation contravenes the government’s own guidance, making it difficult for stakeholders to provide informed feedback.
Broader Implications for Charities
Concerns were also raised about the broader implications of the legislation. Many charities providing essential services could be affected, and local authorities might struggle to replace these services.
The group of school leaders contended that the short consultation period does not allow for a comprehensive review of the policy’s broader implications.
They called for the consultation deadline to be extended from September 15 to October 25 to enable a more thorough examination of the potential impacts.
Call for Delayed Implementation
The private school leaders argue that delaying the VAT implementation until September 2025 is crucial for ensuring a fair and manageable transition for both private and state schools.
They stressed that such a delay would provide the necessary time for schools to prepare and adapt to the new policy, preventing undue disruption.
The appeal from the independent schools underscores the need for a more comprehensive consultation process and thoughtful consideration of the broader impacts of the proposed VAT policy.
It remains to be seen whether the Treasury will heed these calls and adjust the timeline for implementation to September 2025.
