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Gloucestershire Business News

Education Secretary: VAT policy not to blame for school closures

Private schools have themselves to blame for closures - not the government's new VAT policy, according to the education secretary.

Bridget Phillipson said some private schools haven't balanced their books over a number of years and that is why they had to close, as reported by Sky.

The government is making private schools pay 20% VAT on fees from January.

Two schools in Scotland closed this week - the first to close since Labour came into power. The schools, which were both operating at well under capacity, said uncertainty over VAT was one of their reasons for closure.

Ms Phillipson told Sky News that private schools are businesses, and they make decisions about how they manage their own budgets and what fees they charge. She said some schools had raised fees significantly beyond inflation, pricing some families out of the sector.

Before the election, prime minister Sir Keir Starmer said there was no evidence that private schools would have to close due to having to pay VAT.

Ms Phillipson said the VAT plans are to improve standards in state schools, with the extra cash to be used to hire 6,500 more state school teachers. Work on recruiting new teachers started within days of the election.

While she said she wanted private schools to remain an option to parents, 93% of children go to a state school and that is where she will be focusing her efforts to improve the outcomes for children, regardless of their background.

She told Sky: "...Making sure that the background that you're from, the town that you're born, doesn't determine what you can go on to achieve."

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