These are interesting times for the independent school sector. They are contending with ongoing financial challenges, such as rising energy bills and teacher pension costs. They’re also navigating topical education issues, including reforms to the relationships, sex and health education (RHSE) curriculum and calls to ban mobile phones in the classroom. Perhaps most importantly, they are preparing for Labour’s policy to scrap business rates and add VAT to fees – something that creeps ever closer following the recent change in government.

Independent schools are a vital part of the education system, and they contribute significantly to their local communities. They widen access through life-transforming bursary schemes; last year, schools provided more than £1bn in fee assistance, of which more than £500m was means-tested. They also collaborate with neighbouring state schools and local organisations to provide educational opportunities for children and young people. These mutually beneficial partnerships take many forms, ranging from academic programmes to those specialising in music, sports, and careers advice. By creating these links, schools address gaps in provision and discover new ways of doing things in their own schools.

Labour’s election victory has considerable implications for independent schools, which lie at the heart of the party’s education policy. Both Bridget Phillipson and Sir Keir Starmer have reiterated Labour’s intention to add VAT to school fees – which would affect all independent schools – and take away business rates relief for those with charitable status. The former would hit some harder than others; small schools, faith schools, military families and children with special educational needs and disabilities (SEND) are among those most vulnerable to its effects. Many families would be priced out of independent schools, forcing those already operating on tight margins into deficit or even closure. Most independent schools do not have big surpluses and what they do have they reinvest back into education for their students and the local community.

Independent schools are facing challenging times with on-going financial costs and various reforms in policies. The change in government could affect them even further. Photo: kroach The policy would also have unintended consequences for the state sector, as children displaced from independent schools would seek places in already stretched state schools. Recent reports suggest there are a number of local authorities across the country that simply do not have the capacity within their state schools to admit an influx of pupils from the independent sector.

While the business rates relief element of Labour’s plans would not apply to all independent schools, it does have implications for the charity sector as a whole. It would create a two-tier charity system, setting a worrying precedent that any charity seen as ideologically opposed to the government of the day could be subject to extra tax.

It is still unclear when exactly these policies would come into effect, or whether those most at risk would be exempted from VAT on fees (pupils with an education, health and care plan are currently the only group to be protected from the rise). In the face of this uncertainty, independent schools will continue to do what they do best; provide a well-rounded education for their children, as well as valuable support for their local communities. ISC will do all it can to support schools in that endeavour, using our collective voice to raise awareness of the crucial role independent schools play in the wider education system.

We all want to see a well-funded, thriving state sector. We welcome the opportunity to work with the new Labour government to build upon the great work already being done in the sector to deliver our shared goal of a great education for every child.

In association with:

The ISC (Independent Schools Council), represents more than 1,400 independent schools in the UK and overseas. isc.co.uk