VAT on independent Rutland and Stamford schools ‘will put jobs at risk’

One of the largest employers in the area says a new schools tax could put jobs at risk.

The Government is making private schools pay 20% VAT from January 1 next year.

To meet this cost, many schools will have to increase the fees parents pay for their children’s education.

A spokesperson for Stamford School, which has about 1,500 pupils from preschool to sixth form and employs 600 staff, said: “We need to be clear that this is a tax on parents.

“VAT is a tax on consumers and schools will have no choice but to pass this tax on to parents.”

Another effect Stamford School highlighted is that it will force some parents to “seek alternatives in an already burdened state sector”.

The spokesperson said: “We share a commitment to a well-funded state sector but recognise there is already immense pressure on our local state secondary schools.

“With pupils forced to leave independent education, this will put further pressure on already stretched public resources, leading to even larger class sizes in our local schools and reduced individual attention for pupils across the board.”

Carl Smith, principal of non-fee-paying Casterton College in Great Casterton, said the next choice for parents no longer able to afford private school fees would be Lincolnshire’s grammar schools, and this would take away these places from low-income families.

He added: “This inevitability means grammar schools will serve an even more privileged group than currently. In most areas of the country, comprehensive schools replaced grammars more than 40 years ago and perhaps it’s now time to complete the revolution by phasing out the last few.”

Both Casterton College and Bourne Grammar School are over-subscribed, with Casterton typically receiving more applications that its ‘planned admission number’ allows, and the grammar school having 700 applications in 2023 for 240 available places.

Alicia Kearns (Con), MP for Rutland and Stamford, said: “Labour’s decision to tax independent education risks harming our local economy, and will affect military families, children with special educational needs, and local families at comprehensive and independent schools.”

She added that it will inflate class sizes in comprehensives and put jobs at risk in Rutland and Stamford’s 10 independent schools. Currently about 2,000 people are employed at those schools.

Helen Schofield, headteacher at the fee-paying Copthill School in Uffington, said: “Despite seeing a record intake in our reception classes this year, we are keenly aware that the Government’s decision to remove VAT exemption for independent school fees will force some parents at Copthill and other independent schools in the area to have to make tough, long-term decisions about their children’s future education.

“Our continued focus is to carefully manage our cost base to keep fee increases to a minimum, while continuing to innovate and provide our children with the best possible experience.”

Copthill School caters for children up to the age of 11.

At Stamford School, day fees start at £6,650 a term and boarding fees from £9,233.

The spokesperson for the school said: “Our governing body is working on what this policy means for our fees now that we have confirmation of a start date, and parents will be communicated with accordingly.”

They added that they would try to keep fees as low as possible and were “adamant that we will remain the most affordable, value-for-money independent school in the area”.

Oundle School said it was unable to comment at this time. Kirkstone House School in Baston, Witham Hall School in Witham-on-the-Hill, Uppingham School, Oakham School, were all asked to comment.

What do you think? Share your views in the comments.