Home Business Private schools urge the Ministry of Finance to postpone the introduction of VAT until September 25

Private schools urge the Ministry of Finance to postpone the introduction of VAT until September 25

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Leaders of private schools are urging the Treasury to delay the introduction of VAT on school fees, warning that a January implementation could trigger a mid-year surge of pupils into the state sector, placing unsustainable pressure on already stretched resources.

Private school leaders are urging the Treasury to delay the introduction of VAT on school fees, warning that a January introduction could lead to a mid-year surge of students into the state sector, creating unsustainable pressure would arise on already tight resources.

Independent schools will increase fees by up to 20 percent from January, after consultation with the government on the policy. However, a group of headteachers, governors and economists from around 50 schools have written to the Treasury arguing that the policy should be postponed until September 2025. This would give schools sufficient time to plan and mitigate any potential impact.

The group, led by Jamie Harle, bursar at St Piran’s School in Berkshire, and supported by representatives from schools including LVS Ascot, Mount Kelly in Devon and Stafford Grammar School, raised concerns about the short consultation period. They noted that a large part of the consultation overlaps with the summer holidays, leaving little time for meaningful input. The letter warns that continuing the January timeline could overwhelm state schools with an unexpected influx of students and force some private schools to close.

Harle criticized the consultation process, stating: “The government’s half-hearted attempt at consultation, much of which takes place during the school holidays, pays lip service to considering the full consequences of bombarding state schools with a mid-academic move of students to the school holidays. state sector that has not been planned or even predicted.”

He added that the government’s haste to impose VAT on private education without due consideration could lead to significant disruptions in both the private and state sectors. Harle pointed out that independent schools are already starting to close, and that a more thorough public consultation would have been carried out if the government had proposed similar changes to the health service.

The letter to the Treasury emphasizes that the consultation period is three weeks shorter than a previous consultation on the teachers’ pension scheme and states that the timing is contrary to the government’s own guidance. The group also raised concerns about the wider impact of the legislation, which affects many charities that provide essential services that local authorities may struggle to replace.

The letter concludes with an urgent appeal to the government to extend the consultation deadline from September 15 to October 25, allowing a more comprehensive overview of the policy’s implications. Private school leaders argue that delaying implementation until September 2025 is crucial to ensure a fair and manageable transition for both private and public schools.

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