Education Secretary Attributes Private School Closures to Financial Mismanagement, Not New VAT Policy

Education Secretary Attributes School Shutdowns to Private Institutions, Not VAT Measures

Upon taking office, the Labour party introduced a policy to apply VAT to the fees of private schools, set to take effect starting January.

Political correspondent @alixculbertson

Thursday, August 15, 2024, 10:

The secretary of education has stated that private schools should hold themselves responsible for their closures, rather than attributing it to the government's VAT policy.

Bridget Phillipson asserted that several private schools have not managed their finances properly over multiple years while refuting claims that their closures are due to the government imposing a 20% VAT on tuition fees starting January.

This week, Kilgraston and Cedars, two Scottish schools, shut their doors for the first time since the Labour Party assumed control, partly blaming the ambiguity surrounding the policy for their closure.

However, Ms. Phillipson rejected this notion, stating to Sky News, "It appears that private schools operate as businesses with the flexibility to decide on their budget management and fee structures."

In the end, it boils down to their appeal to families based on the number of students who enroll there.

In recent years, private schools have consistently raised their tuition fees at a rate significantly higher than inflation, making it unaffordable for many people.

"It appears that the situations being highlighted involve schools which were already facing significant financial deficits and struggling to draw the desired number of students."

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Prime Minister Sir Keir Starmer stated prior to the July elections that there is "no evidence" to suggest that private schools will be compelled to shut down as a result of being subjected to VAT charges.

Ms. Phillipson stated that the VAT initiatives are intended to "promote high standards in public schools," with the generated funds being used to employ an additional 6,500 public school teachers.

The Secretary of Education emphasized her support for private schools, stating her desire for them to remain accessible, and affirmed that parents will still have the freedom to choose these institutions for their children.

"She subtly emphasized that 93% of kids in our nation attend public schools," she noted.

"As the secretary of state, I am committed to dedicating my work towards addressing the significant disparities that are emerging in the results achieved by our youth. It is crucial to ensure that a person's family background or place of birth does not predetermine their future successes."

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Kilgraston School, located in Perthshire and the sole Catholic boarding school in Scotland, shut down abruptly on Tuesday after a potential sale collapsed when the interested buyer reconsidered their engagement.

In a remarkable show of support last year, parents rallied to donate £1.2 million within just 48 hours after learning that the 94-year-old school faced potential closure from a £2 million funding shortfall.

The program required a minimum of 210 students to cover costs, however, only 173 students enrolled this year.

Cedars School, located in Greenock, announced it will shut down in September due to low enrollment numbers, having only 76 students despite being able to accommodate up to 120.

A spokesperson for the school said that fees had already risen by 10%, and the imposition of VAT would further escalate expenses.

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