Taxing times for independent schools
1 Oct 2024
DRD Partnership’s Kate Miller joined a group of fellow education experts at the Independent School’s Show Leaders Forum to discuss VAT’s impact on the sector. Iman Muneer reports.
Kate Miller joined a panel of experts at the Independent Schools Show’s Leaders’ Forum at the end of September, where the group discussed the hot topic: “Navigating the 20% VAT on Private School Fees.”
Also on the panel were Guy Schady-Beckett, Director at Next Step Education; Simon Nathan, Deputy CEO and Head of Policy at the Independent Schools Council (ISC); Robert Lewis, Partner at Mishcon de Reya LLP; Ralph Lucas, Editor-in-Chief of The Good Schools Guide and Member of the House of Lords; and John Murphie, Chief Operations Officer at the ISBA. You can read more here.
Against the background of the Government’s stated commitment to impose the VAT policy in January 2025, schools are awaiting clarification on the details in the budget on 30 October 2024. Kate emphasised that as fees rise and affordability concerns grow, schools must communicate with clarity and confidence how they will manage this transition in order to maintain student numbers. Current and future parents want to know that the school they invest in has a sustainable future, strong vision and will continue to provide a holistic education that equips students for success in the modern world.
"It is critical that schools convey their legal and financial readiness to manage the change, the strengths of their unique proposition and brand, and their confidence in the future"
“Now is not the time to cut back on communications and marketing – quite the reverse. Parents don’t want to gamble with uncertainty, particularly not when it comes to their children’s futures. It is critical that schools convey their legal and financial readiness to manage the change, the strengths of their unique proposition and brand, and their confidence in the future.
“Education is not a static thing – it has always evolved to meet societal demands and changes. Notwithstanding VAT, with the advent of AI and technology we are at a pivot point in what the future of education looks like. What people are looking for is leadership and vision as our education sector faces the challenges ahead.”
You can watch the full panel discussion here.