
Setting aside all the reasons why VAT on independent school fees is not good for any of the pupils in education, does it even make financial sense for local economies?
Here in Bolton, I increasingly think that it will not.
Just because something is said often does not make it true.
Adding VAT to fees is not closing a 鈥渢ax break鈥 鈥 that is a matter of fact, not my opinion. The Government and must stop using this phrase.
Extra money will certainly be invested in state education. But it won鈥檛 be directly linked in any way with funds from VAT on fees. That is now established as a fact. Extra teachers, breakfast clubs and other changes are needed in state schools.
The sole reason presented for the VAT policy is to allow state school investment.
Yet they will obviously not be funded by the relatively small amounts of money from the VAT on fees. Even if it is as much as 拢1.8 billion, that is a small amount of education spending overall.
And yet the sole reason presented for the VAT policy is to allow state school investment and we must hold the Government to account on this.
I strongly believe this must be done locally and that every MP should monitor impact in their own area. State schools and independent schools should work together to make sure there is the intended gain arising from the obvious detriment.
The VAT bill (across the various local independent schools) will remove 拢4 million pounds from our local economy in Bolton, that parents would otherwise spend on goods and services. And they would often have been paying VAT on those as well.
We must see that money come back to state schools in Bolton and we must see it as extra to any other changes, otherwise the policy is a lose: lose situation locally.
If it does not make a tangible difference to the state sector then the only impact of this policy in Bolton will be that our planned expansion of bursary places will be delayed. We have one in five on bursaries now and that will remain. This would have risen to one in three by 2030. By the end of this government, around 150 extra pupils who could have had a bursary at our school because of the expansion will miss out.
We must see that money come back to state schools in Bolton.
I know the government will regard that as not material or important. I disagree. Chasing the big dreams in education always begins with making incremental impacts and that is what our schools have always done.
More than this, the Government has chosen to disrupt a sector of the economy that contributed taxes, paid for services and employed working people. In Bolton the figures speak for themselves.
One in every 200 pounds locally is linked to Bolton School. That is significant and it matters to everyone here. The data is from the report using the ISC/Oxford Economics modeller where Bolton School contributed 拢23.4 million towards the town’s gross domestic product (GDP).
Bolton is one of the country鈥檚 largest towns and the contribution represents 0.43 per cent of its entire GDP.
If we did not exist, 2,400 of our own pupils would be entitled to a free state school place.
As a school, last year we paid 拢15.9 million in tax into the Exchequer鈥檚 coffers, which included income tax, NICs, plus indirect and induced tax contributions. Payments to other businesses for goods and services relating to our core operations amounted to almost 拢11m. The total number of jobs supported by our activities is 750.
As a school, last year we paid 拢15.9 million in tax into the Exchequer鈥檚 coffers.
I am terrifically proud that our sector through Independent Schools Council and HMC (The Heads’ Conference) and others have brought a sharp focus to the human side of the policy, since the politicians notably have not. A hundred per cent of children matter and we will continue to care about partnership, aspirations for education and high standards for all.
However, it has been made very clear the policy is just about money so it is on those grounds the government must be held to account. I know the story goes that the sector will not be much impacted, and revenue will be generated.
But it is entirely possible that instead a successful part of the economy will be damaged, costs of state education will rise, tax revenues fall, and local economies suffer. I hope not, but we deserve reporting systems that will allow us to know.