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Private school pupil numbers dip by 11,000 after VAT hike - but Labour STILL claims controversial tax isn't causing exodus
Private school pupil numbers dip by 11,000 after VAT hike - but Labour STILL claims controversial tax isn't causing exodus

Daily Mail​

time3 days ago

  • Business
  • Daily Mail​

Private school pupil numbers dip by 11,000 after VAT hike - but Labour STILL claims controversial tax isn't causing exodus

Private school pupil numbers have dipped by 11,000 this year – but Labour still claims its new tax raid on fees has not caused the exodus. Official government figures show numbers at independent schools have taken a disproportionately large hit since fee VAT came in. The data, published today, calls into question Labour's claim that only 3,000 pupils would leave this year as a result of the policy. However, the Government immediately said it was a 'myth' that VAT alone caused the dip and blamed other pressures on the sector. The figures, from the Department for Education, show pupil numbers in private schools in England fell to 582,477 in January 2025 compared with 593,486 the previous year. This represents a 1.9 per cent decrease – higher than the 0.7 per cent drop in all pupil numbers across the state and private sectors. The data, from the school census, was recorded after Labour's tax came into effect on January 1 – following a manifesto pledge last summer. The fall comes after three years of growth for pupils at private schools. Julie Robinson, chief executive of the Independent Schools Council (ISC), said: 'These new statistics show that the drop in independent school numbers cannot be explained by the fall in overall pupil numbers. 'The Government's own figures now show that, in England alone, 8,000 more students have left independent education than politicians had estimated. 'This outsized exodus should concern anyone who is interested in this tax on education as a revenue raiser.' The Government previously estimated that only 3,000 pupils would leave the sector across the UK in the 2024-25 academic year due to the policy. Mike Stimpson, partner at Wealth Manager Saltus said: 'This 1.9 per cent fall may just be the beginning. 'Our research suggests we are likely to see further declines in private school enrolments as the financial impact of this policy becomes even more real for families. 'As more parents consider their options, we expect continued disruption in the private education landscape throughout the year ahead.' It comes after the ISC published its own census, also carried out in January, showing a reduction of 13,000 pupils across the UK schools it represents. A Government spokesman said: 'Today's figures shatter the myth that charging VAT on private education would trigger an exodus. 'The data reveals pupil numbers remain firmly within historical patterns seen for over 20 years. 'The 1.9 per cent decline in private school pupil numbers reflects the broader demographic trends and changes in the state sector. 'This manufactured crisis has failed to materialize. 'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools, to help ensure excellence everywhere for every child.' The total number of pupils across England is decreasing because of a falling birth rate.

Full extent of private school ‘exodus' revealed after VAT on fees
Full extent of private school ‘exodus' revealed after VAT on fees

The Independent

time3 days ago

  • Business
  • The Independent

Full extent of private school ‘exodus' revealed after VAT on fees

New government figures have revealed a decline in the number of pupils attending private schools in England, following the introduction of VAT on fees. According to data from the Department for Education (DfE), private schools saw approximately 11,000 fewer pupils in January compared to the same time last year. This represents a 1.9 per cent decrease, from 593,486 pupils in January 2024 to 582,477 this year. The government's policy to impose 20 per cent VAT on private school fees came into effect on January 1. The data also indicated an overall decrease of 0.7 per cent in the total number of pupils in schools across England, including both state and private institutions, bringing the total to 9.03 million. The DfE has suggested that the decline in pupil numbers in state primary schools and private schools, coupled with minimal change in state secondary schools, is "primarily driven by demographic changes". A population bulge in England has been moving from primary schools into secondary schools. The DfE said the population in private schools was now 'similar' to that in 2021/22. In November, the Government estimated that around 3,000 private school pupils would move into the state school sector in the UK by the end of the 2024/25 academic year because of the VAT change on private school fees. Julie Robinson, chief executive of the Independent Schools Council (ISC), said: 'These new Department for Education statistics show that the drop in independent school numbers cannot be explained by the fall in overall pupil numbers. 'The Government's own figures now show that, in England alone, 8,000 more students have left independent education than politicians had estimated. 'This outsized exodus should concern anyone who is interested in this tax on education as a revenue raiser.' A Government spokeswoman said: 'Today's figures shatter the myth that charging VAT on private education would trigger an exodus. 'The data reveals pupil numbers remain firmly within historical patterns seen for over 20 years. 'The 1.9 per cent decline in private school pupil numbers reflects the broader demographic trends and changes in the state sector, with almost no change in secondaries and a 1.3 per cent reduction in state-funded primary school pupil numbers. 'This manufactured crisis has failed to materialise. 'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help fund public services, including supporting the 94 per cent of children in state schools, to help ensure excellence everywhere for every child.'

More mystery 'Minions' appear painted under Burnley bridge
More mystery 'Minions' appear painted under Burnley bridge

BBC News

time5 days ago

  • Entertainment
  • BBC News

More mystery 'Minions' appear painted under Burnley bridge

More mystery "Minions" have appeared painted by an unknown artist under a motorway bridge, to the delight of initial set of the yellow cartoon creations - featured in the Despicable Me movies - appeared last month under the Leeds Liverpool canal just past Rosegrove, close to Hapton in Burnley, Lancashire.A further nine have now emerged on the bridge stanchions with the identity of the artist, who locals have dubbed "the Burnley Banksy", yet to come Simpson, who lives nearby, said the striking artwork "brings a smile to my face" and he hopes the Minions stay. However, National Highways said the designs could impede inspections of the structures. Mr Simpson said he often cycles past the structures and thinks they are fantastic. "They brighten up an otherwise dull bit of concrete," he said."It is a lot better than your average destructive graffiti. There's a bit of art to it and kids will enjoy it."He said the Minions have been discussed on social media and "nobody has a bad word to say about them".The 63-year-old added: "It's good for the local area. Let's hope they stay." Julie Robinson and Pete Storozuk are also impressed."They're really good," Ms Robinson said."We come past quite a lot and one day they weren't there and the the next day they were. It's so amazing." The 69-year-old said the mysterious artist was talented and should come forward while Mr Storozuk said: "It brightens up the place."He said the artist was a "quick worker" although it was a "shame it wasn't [the real] Banksy". Eric and Lindsey Kerr often walk their dogs past the bridge and agreed the art was "brilliant". Mrs Kerr, 61, said: "They make people smile. They're a great idea. We love them."Mr Kerr, 64, added: "It's better than just looking at just concrete."However, National Highways was not as fast to compliment the a statement, it said: "While this kind of graffiti might seem entertaining, it does impede our ability to fully inspect the structures for any maintenance issues."Removing the paint will also cost time and money - resources which would otherwise be spent on improving drivers' motorway journeys." Listen to the best of BBC Radio Lancashire on Sounds and follow BBC Lancashire on Facebook, X and Instagram. You can also send story ideas via Whatsapp to 0808 100 2230.

Labour ‘underestimated' impact of VAT raid on private schools as fees surge
Labour ‘underestimated' impact of VAT raid on private schools as fees surge

Yahoo

time15-05-2025

  • Business
  • Yahoo

Labour ‘underestimated' impact of VAT raid on private schools as fees surge

Labour has been accused of having 'underestimated' the impact of its VAT policy on private schools as fees surged by almost a quarter this year. The Independent Schools Council (ISC), which represents about half of private schools across the UK, said fees were 22.6 per cent higher on average in January compared with a year ago. It comes after the Government hit private schools with 20 per cent VAT on fees for the first time from Jan 1, in the middle of an academic year. Private schools have also been grappling with recent National Insurance changes, while those in England with charitable status were stripped of their 80 per cent business rates relief last month. This year's average fee hike of nearly a quarter, revealed in the ISC's latest annual census and shared with the BBC, compares with an 8.4 per cent rise in 2024 and a 6.4 per cent increase in 2023. Julie Robinson, the chief executive of the ISC, said it is 'clear to us that the Government has underestimated the effect' of its 'triple whammy' on private schools. Ministers have repeatedly insisted that their VAT policy on private schools would only result in fee rises of around 10 to 15 per cent. A Treasury impact assessment published last October also said that 'on average, the Government expects private school fees to go up by around 10 per cent as a result of the introduction of VAT'. The document, published alongside Rachel Reeves' inaugural Budget, insisted that private schools would likely choose to absorb much of the VAT rise and that some had 'already said publicly that they are going to cap fee increases at 5 per cent'. However, many of the UK's most prestigious schools have raised fees by the maximum 20 per cent, while smaller private schools have suggested their lack of reserves has prevented them from absorbing much of the levy. At Eton College, boarding fees increased from £17,583 to £21,100 per term this year. Meanwhile, Harrow and Marlborough have passed on 15 per cent to parents, putting both schools' annualised fees at around £60,000. Ms Robinson suggested the Government's forecasts had missed the mark and that the true impact of the VAT raid would likely emerge in years to come, as families reconsider private education altogether. 'We know parents have already left the sector because of the threat of VAT coming in so we do expect the reality of this to lead to further decreases, but the full effects will only become apparent over the next few years,' the ISC chief said. In the run-up to the general election, Labour also relied on analysis by the Institute for Fiscal Studies (IFS) suggesting that 15 per cent fee rises on average would result in a modest movement of private school pupils to the state sector. The IFS report, published in July 2023, said that an 'effective VAT rate of 15 per cent would lead to a 3 to 7 per cent reduction in private school attendance'. The ISC said data from its latest annual census, due to be published next week, showed some of its members reported a 4.6 per cent fall in Year 7 pupils in September 2024. However, others have pointed to a declining birth rate and broader financial concerns to explain the drop. The Treasury also rejected suggestions the VAT raid was solely to blame for fee rises this year and said it followed large increases over the past few decades. A Treasury spokesman said: 'This data misrepresents reality – the increases in fees are not only down to VAT. Average fees have risen by 75 per cent in real terms in the past 25 years and pupil numbers have remained steady. 'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help deliver 6,500 new teachers and raise school standards, supporting the 94 per cent of children in state schools to achieve and thrive.' More than a dozen private schools have directly blamed the VAT raid for causing them to close so far, while many others have announced they are shuttering because of financial constraints. Ministers have repeatedly brushed off attempts to link the closures to the VAT raid and insisted around 80 private schools shut across the UK in an average year. However, High Court documents obtained by The Telegraph last month revealed that Ms Reeves was warned Labour's tax levy could cause many more to shut – something the Government has never admitted in public. Internal government documents show Treasury officials informed the Chancellor last July that 'around 100 additional independent schools may close over the next three years directly as a result of the new VAT charge'. Court documents obtained by The Telegraph also revealed that Labour deliberately chose the 'most disruptive' start date for the VAT raid on private schools after being presented with a range of options. Ministers ultimately decided to go with the course of action labelled by civil servants as 'the most disruptive' for schools and pupils in order to 'maximise revenue', The Telegraph disclosed. It comes as the Government is currently embroiled in a High Court battle over its VAT policy after parent groups argued the tax raid is discriminatory. Parent groups are seeking a 'declaration of incompatibility' under human rights laws. Although this would not overturn the VAT policy in itself, it could force the Government to take a second look at the tax raid or hand out exemptions. The judicial review was heard by three High Court judges, who are expected to issue a single written judgement in the next few weeks. Broaden your horizons with award-winning British journalism. 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Labour ‘underestimated' impact of VAT raid on private schools as fees surge
Labour ‘underestimated' impact of VAT raid on private schools as fees surge

Telegraph

time15-05-2025

  • Business
  • Telegraph

Labour ‘underestimated' impact of VAT raid on private schools as fees surge

Labour has been accused of having 'underestimated' the impact of its VAT policy on private schools as fees surged by almost a quarter this year. The Independent Schools Council (ISC), which represents about half of private schools across the UK, said fees were 22.6 per cent higher on average in January compared with a year ago. It comes after the Government hit private schools with 20 per cent VAT on fees for the first time from Jan 1, in the middle of an academic year. Private schools have also been grappling with recent National Insurance changes, while those in England with charitable status were stripped of their 80 per cent business rates relief last month. This year's average fee hike of nearly a quarter, revealed in the ISC's latest annual census and shared with the BBC, compares with an 8.4 per cent rise in 2024 and a 6.4 per cent increase in 2023. Julie Robinson, the chief executive of the ISC, said it is 'clear to us that the Government has underestimated the effect ' of its 'triple whammy' on private schools. Ministers have repeatedly insisted that their VAT policy on private schools would only result in fee rises of around 10 to 15 per cent. A Treasury impact assessment published last October also said that 'on average, the Government expects private school fees to go up by around 10 per cent as a result of the introduction of VAT'. The document, published alongside Rachel Reeves' inaugural Budget, insisted that private schools would likely choose to absorb much of the VAT rise and that some had 'already said publicly that they are going to cap fee increases at 5 per cent'. However, many of the UK's most prestigious schools have raised fees by the maximum 20 per cent, while smaller private schools have suggested their lack of reserves has prevented them from absorbing much of the levy. At Eton College, boarding fees increased from £17,583 to £21,100 per term this year. Meanwhile, Harrow and Marlborough have passed on 15 per cent to parents, putting both schools' annualised fees at around £60,000. Ms Robinson suggested the Government's forecasts had missed the mark and that the true impact of the VAT raid would likely emerge in years to come, as families reconsider private education altogether. 'We know parents have already left the sector because of the threat of VAT coming in so we do expect the reality of this to lead to further decreases, but the full effects will only become apparent over the next few years,' the ISC chief said. In the run-up to the general election, Labour also relied on analysis by the Institute for Fiscal Studies (IFS) suggesting that 15 per cent fee rises on average would result in a modest movement of private school pupils to the state sector. The IFS report, published in July 2023, said that an 'effective VAT rate of 15 per cent would lead to a 3 to 7 per cent reduction in private school attendance'. The ISC said data from its latest annual census, due to be published next week, showed some of its members reported a 4.6 per cent fall in Year 7 pupils in September 2024. However, others have pointed to a declining birth rate and broader financial concerns to explain the drop. The Treasury also rejected suggestions the VAT raid was solely to blame for fee rises this year and said it followed large increases over the past few decades. A Treasury spokesman said: 'This data misrepresents reality – the increases in fees are not only down to VAT. Average fees have risen by 75 per cent in real terms in the past 25 years and pupil numbers have remained steady. 'Ending tax breaks for private schools will raise £1.8 billion a year by 2029/30 to help deliver 6,500 new teachers and raise school standards, supporting the 94 per cent of children in state schools to achieve and thrive.' More than a dozen private schools have directly blamed the VAT raid for causing them to close so far, while many others have announced they are shuttering because of financial constraints. Ministers have repeatedly brushed off attempts to link the closures to the VAT raid and insisted around 80 private schools shut across the UK in an average year. However, High Court documents obtained by The Telegraph last month revealed that Ms Reeves was warned Labour's tax levy could cause many more to shut – something the Government has never admitted in public. Internal government documents show Treasury officials informed the Chancellor last July that 'around 100 additional independent schools may close over the next three years directly as a result of the new VAT charge'. Court documents obtained by The Telegraph also revealed that Labour deliberately chose the 'most disruptive' start date for the VAT raid on private schools after being presented with a range of options. Ministers ultimately decided to go with the course of action labelled by civil servants as 'the most disruptive' for schools and pupils in order to 'maximise revenue', The Telegraph disclosed. It comes as the Government is currently embroiled in a High Court battle over its VAT policy after parent groups argued the tax raid is discriminatory. Parent groups are seeking a 'declaration of incompatibility' under human rights laws. Although this would not overturn the VAT policy in itself, it could force the Government to take a second look at the tax raid or hand out exemptions. The judicial review was heard by three High Court judges, who are expected to issue a single written judgement in the next few weeks.

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