South Devon is home to several small independent schools that provide an alternative education to the mainstream offer from state schools; an education that caters brilliantly to pupils who, for whatever reason, struggle to fit in with the demands of the mainstream curriculum.
These schools, I’m sure, were not the intended target of the Government’s plans to end the VAT exemption for independent schools. And yet, many face bankruptcy and closure because of it.
Remember, these schools are not like Eton. Not like Harrow or Winchester College, either. They set their fees as low as they can make them to survive; they offer smaller class sizes, fewer class transitions, and place more emphasis on well-being and creativity.
I’ve heard from several parents with children living with autism or other mental health challenges who couldn’t cope in state schools and are now thriving in these small private settings.
These parents are not wealthy. Some are selling their houses to afford the fees; others have had to give away the family pet, move into a flat, and shop second-hand, all in the service of giving their child an education in which they prosper.
For these families, this proposed tax change is a regressive step which will force them into an impossible situation. It will have a devastating impact on children who have already had such a difficult start in life; many of whom have experience of the care system, our failing mental health system, and a state school system that is completely unable to cope with all these children with additional or complex needs.
It beggars belief that this tax change is being pushed through at a time when funding for our schools is so dire. In Devon alone, schools are facing a shortfall of £23.5 million each year due to the current national funding formula used by the Government – this is the equivalent to the salaries of 450 full-time teachers!
Clearly, the state system cannot cope with any more additional need, and yet, we’ve heard nothing from the Government about any new funding to help schools deal with the inevitable influx of children who’ve had to leave independent schools because of the change in tax.
The introduction of VAT on private school fees may not have much impact on schools where parents can afford £50,000 a year for a child, but one school in South Devon, whose fees are just £10,000 per year, said it will face closure if it loses just four more children from its role.
It can’t be expected that small independent schools like our ones in South Devon should just have to cope with the additional financial pressures this policy creates. These schools are already trying to absorb as many costs as possible to avoid increasing fees. Teachers are taking salary cuts and much needed building repairs are being put on hold indefinitely.
Earlier this month, I spoke at a Westminster Hall debate about this topic, where I urged the Secretary of State of Education to introduce a lower fee threshold for the VAT exemption for independent schools.
What struck me then was the broad cross-party concern about the impacts of this policy. No matter which party some of my colleagues represent, so many of us can see that this policy in its current form will have massive implications, for independent schools, who may have to cut staff numbers and could shut their doors for good, for children, who may be forced to re-enter a state school system they cannot cope with and may drop out of school entirely, as a result, and on parents, whose financial situation may become even more stretched during a cost of living crisis and may have to give up work altogether to homeschool their children.
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