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Yahoo
17-05-2025
- Business
- Yahoo
Reform pledges to save private schools at risk under Labour's tax raid
Dozens of private schools under Reform councils could be saved from extinction after its deputy leader pledged to help them battle Labour's VAT raid. Richard Tice told The Telegraph its newly elected council leaders will do 'whatever we can' to help private institutions cope with the policy. This could include providing emergency funding to schools or facilitating mergers with the state sector to prevent unnecessary closures. The 10 county councils Reform won control of at the local elections are home to more than 140 private schools, which together educate tens of thousands of pupils. It may present a challenge to the political newcomers as the schools grapple with the cost of having to pay 20pc VAT and business rates for the first time in history. Mr Tice said: 'The schools VAT policy is a catastrophe. Schools are closing, children's education is being damaged and jobs are being destroyed. 'Reform will do whatever we can to mitigate the impacts of this policy before we win the next general election so we can scrap this absurd VAT on fees.' When asked about what Reform-run councils could do to support schools at risk of closure, the Boston and Skegness MP said: 'We will look at all possible options within the constraints allowed. But fundamentally, the best course is to reverse this catastrophic policy.' Private school leaders have repeatedly warned that school closures could lead to added pressure on state schools, whose funding is administered by local authorities and sourced from the Department for Education. Since the tax raid came into force in January, an increasing number of private schools have closed and some have blamed the added costs for their decision to shut. Telegraph analysis shows there are 144 private schools in Reform-controlled councils, accounting for 44,290 pupils in total. It represents just over 9pc of all private schools in the country. One third of private schools in Reform councils are located in Kent, a hotspot for independent schools nationally. Local authorities have a significant role to play in cases where independent schools are merged with existing state schools or converted to academies, though this is normally to fulfil their legal obligation to provide sufficient school places. Town halls can also provide businesses with funding, in the form of loans and grants. However, this may prove difficult as many council budgets come under increasing pressure. Reform did not give details on how exactly it planned to use these limited powers to assist private schools at risk of closure. The party's leadership has vociferously opposed Labour's VAT policy. Nigel Farage said before the election last year that it was 'not morally right', and argued it would deprive children of the chance to have the 'best possible education'. Since private schools have been liable for VAT and business rates, a number of them have closed and fees have soared. The Independent Schools Council, which represents about half of private schools across the UK, said fees were 22.6pc higher on average in January compared with a year ago. Wakefield Independent School, which announced it would shut earlier this month, partly blamed 'a reduction in current pupil numbers caused by the VAT impact'. It also said it had faced difficulty recruiting new pupils. By March, a dozen private schools had blamed the Labour's VAT raid for forcing them to close since the policy was first touted. The Government has previously defended the policy as necessary to generate £1.8bn a year by 2029-2030 to help fund public services. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
17-05-2025
- Business
- Telegraph
Reform could save private schools at risk under Labour's tax raid
Dozens of private schools under Reform councils could be saved from extinction after its deputy leader pledged to help them battle Labour's VAT raid. Richard Tice told The Telegraph its newly elected council leaders will do 'whatever we can' to help private institutions cope with the policy. This could include providing emergency funding to schools or facilitating mergers with the state sector to prevent unnecessary closures. The 10 county councils Reform won control of at the local elections are home to more than 140 private schools, which together educate tens of thousands of pupils. It may present a challenge to the political newcomers as the schools grapple with the cost of having to pay 20pc VAT and business rates for the first time in history. Mr Tice said: 'The schools VAT policy is a catastrophe. Schools are closing, children's education is being damaged and jobs are being destroyed. 'Reform will do whatever we can to mitigate the impacts of this policy before we win the next general election so we can scrap this absurd VAT on fees.' When asked about what Reform-run councils could do to support schools at risk of closure, the Boston and Skegness MP said: 'We will look at all possible options within the constraints allowed. But fundamentally, the best course is to reverse this catastrophic policy.' Private school leaders have repeatedly warned that school closures could lead to added pressure on state schools, whose funding is administered by local authorities and sourced from the Department for Education. Since the tax raid came into force in January, an increasing number of private schools have closed and some have blamed the added costs for their decision to shut. Telegraph analysis shows there are 144 private schools in Reform-controlled councils, accounting for 44,290 pupils in total. It represents just over 9pc of all private schools in the country. One third of private schools in Reform councils are located in Kent, a hotspot for independent schools nationally. Local authorities have a significant role to play in cases where independent schools are merged with existing state schools or converted to academies, though this is normally to fulfil their legal obligation to provide sufficient school places. Town halls can also provide businesses with funding, in the form of loans and grants. However, this may prove difficult as many council budgets come under increasing pressure. Reform did not give details on how exactly it planned to use these limited powers to assist private schools at risk of closure. The party's leadership has vociferously opposed Labour's VAT policy. Nigel Farage said before the election last year that it was 'not morally right', and argued it would deprive children of the chance to have the 'best possible education'. Since private schools have been liable for VAT and business rates, a number of them have closed and fees have soared. The Independent Schools Council, which represents about half of private schools across the UK, said fees were 22.6pc higher on average in January compared with a year ago. Wakefield Independent School, which announced it would shut earlier this month, partly blamed 'a reduction in current pupil numbers caused by the VAT impact'. It also said it had faced difficulty recruiting new pupils. By March, a dozen private schools had blamed the Labour's VAT raid for forcing them to close since the policy was first touted. The Government has previously defended the policy as necessary to generate £1.8bn a year by 2029-2030 to help fund public services.
