Single-sex schools ‘could be forced to close’ if Labour’s VAT on fees cripples them
- Labour plans to charge schools 20 per cent VAT and scrap the 80 per cent relief
Struggling single-sex schools could be forced to choose between closure and co-education if Labour’s VAT raid on fees cripples them financially, it has been suggested.
Competition, rising costs, and parental demands have seen dozens of single-sex institutions close, merge, or decide to admit both sexes since 2014.
There were 115 single-sex boy schools and 186 single-sex girl schools in the UK in 2014, Independent Schools Council (ISC) figures show. However this has dropped to 106 and 159 respectively in 2023.
At least twelve have gone co-educational in the past two years, a Times study revealed.
Independent schools can register as charities in return for acts that benefit the community.
But Labour plans to charge schools 20 per cent VAT and scrap the 80 per cent relief they receive on business rates.
Labour, led by Sir Keir Starmer, plans to charge schools 20 per cent VAT and scrap the 80 per cent relief they receive on business rates
Sir Anthony Seldon, head of Epsom College, said schools operating ‘close to the margin’ will suffer the most if Labour’s VAT plans go ahead as planned
The move could force bursars to hit families with higher charges from as early as next September, potentially pushing 90,000 priced-out youngsters into the state sector and piling pressure on the finances of any single-sex schools already teetering on the brink of insolvency.
Robin Walker MP said: ‘Single sex schools could suffer as a result of a decision to increase VAT, and that is something I don’t think has been thought through by the party.
‘It lacks proper analysis of the second order impact like schools closing down and the more places it would create in the state secondary sector.
‘It strikes me as a dangerous time to be experimenting with a significant change of this nature.’
Sir Anthony Seldon, head of Epsom College, said schools operating ‘close to the margin’ will suffer the most if Labour’s VAT plans go ahead as planned.
Robin Walker MP said: ‘Single sex schools could suffer as a result of a decision to increase VAT, and that is something I don’t think has been thought through by the party’
Melanie Sanderson, editor of the Good Schools Guide, told The Times: ‘Schools that are savvy are looking at the target audience and adapting to their needs. That may be going co-ed for some. Single-sex education – particularly with boys’ schools – is really falling out of fashion.
‘Families are time-poor and want to educate their children together. If you’re looking at boarding school [you] don’t want to have to drop one at one school and another in the opposite direction. Schools are looking at the market and responding to it.’
Britain’s independent schools are supporting more than 160,000 pupils as part of a soaring rise in bursaries and scholarships, figures show.
It has been driven by an increase in means-tested funding for the poorest pupils, with £494million handed out this year to struggling families.
But the ISC, who represent 1,300 schools, say the extra financial burden of VAT could impact institutions’ ability to help fund places for poorer pupils.
Labour, citing a study by the Institute for Fiscal Studies think-tank, believes changes to the tax rules could raise as much as £1.5 billion per year.
Donna Stevens, CEO of Girls’ Schools Association, said single-sex girls schools are set to stay.
She said: ‘Girls’ Schools Association can only speak for girls of course – enrolment in girls’ schools has grown by 2.4 per cent in the last 10 years.
‘It’s important for people to know girls’ schools are a popular choice for parents, and that there are so many kinds of girls’ schools to choose from today.
‘I want to see that chance for every girl to learn in a school built for her, one that puts her interests first, to increase further. We always champion more opportunity and choice for girls in our schools. A firm favourite with girls and parents, our schools are set to stay.’
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