Private schools in the UK are being forced to cut back on extra luxuries such as embossed stationery and annual bonfire events as they prepare for upcoming changes to their charitable status. Labour’s proposed policy to introduce a 20% VAT on education services from January 2025, along with the removal of charitable rates relief, is pushing schools to make tough financial decisions.
According to reports, many private schools are reassessing their budgets and considering halting certain non-essential expenses. One school, for instance, is now questioning the need for a new swimming pool as they prepare for the financial strain of the VAT policy.
Neil Roskilly, an education consultant and former CEO of the Independent Schools Association, mentioned that while schools are maintaining their core facilities, they are reconsidering the “nice-to-haves.” This includes projects such as new swimming pools or AstroTurf pitches, which may be delayed to save money.
Melanie Sanderson, managing editor at the Good Schools Guide, explained that several schools are trimming down on smaller luxuries. Items like personalised stationery and elaborate events such as Bonfire Night celebrations are often the first to go, as schools focus on preserving the quality of education despite the challenging financial landscape.
Many fee-paying parents expect high standards when it comes to school facilities. However, with the upcoming tax changes, schools are having to balance maintaining a premium level of education while adjusting to the new financial pressures.
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