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Private schools to go bust in the coming recession

428 replies

ampletime · 29/10/2023 08:42

The mother of all recessions is coming in my view. The world economy is pushing towards a large scale and deep debt crises. This follows the explosion of government deficits, borrowing, and leverage in recent decades and now that debt is growing due to high interests. Governments are in eye watering debt, individuals are in debt and so are private schools.
In the last 5 years private schools have been on spending sprees with new builds and new facilities mostly for marketing appeal rather than need. But it’s all been funded on debt. I work for a building service solution company and the number of private schools in the last 5 years have exploded on our books all funded by debt.

I know of one boarding school now in trouble and they have sold off their build and it will be converted to flats.

Be careful folks out there. Times are not as good as these schools portray.

OP posts:
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JustAMinutePleass · 31/10/2023 00:35

eurotravel · 30/10/2023 23:57

No in our area people live in cheaper areas to afford private fees. If the schools fold they'll get their local area school. Or if they can't afford it anymore and have to use state.
I have zero tolerance for private school privilege and advantage.
I resent the two tier system

Depends on the area.

In wealthy areas parents farm kids out to State and local schools do accept kids out of catchment. If those private schools close it will be the catchment children who, quite rightly, get priority. So in oversubscribed areas with high birthrates in some years, some tough decisions then need to be made by LEAs including whether older children already in a school but living out of catchment get to keep their place over a child who is in catchment.

(our LEA is already exploring the legality of this for high birth years as the fear is it will lose out on the higher performing students to bigger better performing schools in other LEAs in the event of vat rises. They also want to make expulsions permanent).

Then there are the schools like DS’ who take in the kids of medical professionals. Most of the parents I’ve spoken to about this have said they’d leave the country for private schools and better pay if that happened.

Angrymum22 · 31/10/2023 00:34

I think people should be careful what they wish for. What school/academy would not want to offload their underachieving, disruptive cohort in exchange for an injection of well supported pupils who are keen to learn. Easier to teach with the added bonus of wealthy parents to revitalise the PTA and inject some well needed funds.
I would agree with@JustAMinutePleass. Emptying private schools into state will not end well. The parents are a force to be reckoned with, they are used to value for money and will no doubt heap the pressure on an already overloaded system.
Although we are only talking 7% those extra pupils will have to be squeezed in with very little increased funding.

The private sector is worth in the region of 10-20 billion a year ( school fees). That money will not be going into the government education budget. The government will have to find the extra money to teach the extra 7% from its existing budget.

None of the schools estates are state owned so cannot be used or sold off. The government may have the option to buy the estates but many have state of the art facilities that are way out of the reach of government coffers.

It is very naive to think there can be a simple conversion to state as we saw in the 1970s when the Labour government did away with the grammar school system.
I will be surprised if the private schools don’t fight the government in court over the proposed introduction of VAT.

FloraClover · 31/10/2023 00:29

43ontherocksporfavor · 30/10/2023 07:56

@Newuser75 yes but that will force government to do better. At the moment Tories don’t care about state education as their own DC don’t use it!

Left wing clap trap, as if the middling left aka Labour will do any better. This country is in such deficit that there’s no money for education or health 😞

WrongSwanson · 31/10/2023 00:21

JustAMinutePleass · 31/10/2023 00:16

Opposite here

Just goes to show how hard it is to generalise doesn't it Smile

JustAMinutePleass · 31/10/2023 00:16

WrongSwanson · 31/10/2023 00:15

All the private schools near us perform far worse academically than the local state school.

Opposite here

WrongSwanson · 31/10/2023 00:16

And our LEAs discussions are around declining birth rates.

WrongSwanson · 31/10/2023 00:15

JustAMinutePleass · 31/10/2023 00:11

I know through a contact that several LEAs is discussing the legality of permanent expulsions, making existing students living out of catchment loose their places to reapply mid-year, and narrowing catchments so local schools don’t lose out on high performing private students if and when the vat rises come up.

All the private schools near us perform far worse academically than the local state school.

JustAMinutePleass · 31/10/2023 00:11

I know through a contact that several LEAs is discussing the legality of permanent expulsions, making existing students living out of catchment loose their places to reapply mid-year, and narrowing catchments so local schools don’t lose out on high performing private students if and when the vat rises come up.

eurotravel · 30/10/2023 23:58

Newuser75 · 30/10/2023 07:50

For people saying they don't feel sad about the prospect of private schools closing. Have you considered where the children from these schools will go if this happens? State schools are full to bursting and struggling as it is. Closure of private schools will put even more of a huge strain on these schools.

And obviously people struggling to feed their families is a much bigger problem.

Not all state schools are full. Our city has a huge % schools with spaces post Brexit.

eurotravel · 30/10/2023 23:57

TizerorFizz · 30/10/2023 07:35

Until there’s far more Dc taking up places at the most desirable state schools and others who live further away don’t get in and get the RI or Inadequate school. Be careful what you wish for.

No in our area people live in cheaper areas to afford private fees. If the schools fold they'll get their local area school. Or if they can't afford it anymore and have to use state.
I have zero tolerance for private school privilege and advantage.
I resent the two tier system

Hellsbellsy · 30/10/2023 23:43

The biggest crisis would be if the privately educated children end up in the state system which is already bursting at the seems! The infrastructure is not in place, and then there’s the money it would cost to fund places for all those children !

Iwasafool · 30/10/2023 23:20

fearfuloffluff · 30/10/2023 09:28

Also tbh I'd be pissed off if my kids' state school basically got commandeered by fancy pants parents who thought they knew better than everyone

Yes just imagine people with influence making sure schools weren't going to fall down on top of the children, that there were enough resources that there was enough in the budget to make sure there were enough staff to give every child enough attention. It would be hell wouldn't it.

Iwasafool · 30/10/2023 23:18

Another76543 · 30/10/2023 09:26

You don’t think that Sunak or Prince William might choose a foreign boarding school over the local failing comp? You are never going to get rid of inequality entirely.

Wealthier private school parents have far more options. Private schools are already increasingly sending students to overseas rather than UK universities. That will trickle down to secondary education. The parents who will struggle and be affected when private schools close are those who stretch themselves to afford the fees, often with children who have additional needs and who have been failed by the state system.

Getting rid of, or reducing, the number of private schools won’t get rid of privilege and advantage. It’ll make the gap even wider.

Of course they would but I was responding to a post that said private school parents don't have any influence, I reckon Sunak and Prince William do have influence. So not all parents will but some probably do.

WrongSwanson · 30/10/2023 21:11

This reply has been deleted

The OP has privacy concerns and so we've agreed to take this down.

I know plenty of people who experienced vile bullying in private schools, then switched to state and weren't bullied.

I'm glad your DC has a better experience in the private sector but I've heard just as many examples in the opposite direction.

Fifthtimelucky · 30/10/2023 20:56

I think some smaller schools have been vulnerable for years.

I can think of three independent schools in the area that have closed in the last 15 years or so.

In the same period three others have changed the age range or sex of the children they take, presumably in order to attract more pupils.

lolo99 · 30/10/2023 20:01

Angrymum22 · 30/10/2023 16:12

I think worrying about private schools going under is the least of our worries if we go into a global recession.
All schools will be hit by increasing costs, particularly staff salary increases to keep up with inflation. We will probably see measures such as reduced school days/hours and increases in class size to accommodate rising staff costs. Heating is a major problem so reducing the hours in winter to save fuel will be considered. It may have to be if selective power cuts are introduced.
I was at school during the last big recession in the 1970s when fuel was rationed, power cuts and three day weeks were introduced.

We were talking about this today. People are so focused on hoping that those richer will be inconvenienced, they are not educating themselves about how their kids in state schools will be in a recession. Now that is what the mass media want, the public to be ignorant of what is to come so the 'elite' and 'powers' can look after themselves. The state schools will be a total mess in a recession. Infact they already are- stop snoozing and wishing bad on those you envy and pay attention to what will happen in the state govt schools. Some schools already teaching core subjects in classes of 120- you think that is ok just as long as private schools are getting charged more?

lolo99 · 30/10/2023 19:56

Validus · 30/10/2023 12:58

Except they won’t be forced to attend. The prices are similar at international schools so the rich can decide to just send the kids to those.

also, politicians who do send their kids to state schools magically appear to be able to engineer entry to the most sought after state schools. They aren’t about to start caring overly about the rest.

exactly this. I think people's energies are better spent campaigning for more funding in state schools, better teacher salaries, LSA support and smaller classes than praying that the private schools fold so you can smile for 30 seconds that those richer than you can't go to that particular school- perhaps.

lolo99 · 30/10/2023 19:53

TizerorFizz · 30/10/2023 07:35

Until there’s far more Dc taking up places at the most desirable state schools and others who live further away don’t get in and get the RI or Inadequate school. Be careful what you wish for.

I have said the same. Getting glee from private schools folding or having to pay tax, might give your envy a thumbs up but the funding won't go into state schools, it will mean that class sizes in state schools will blow up.

Snugglemonkey · 30/10/2023 19:24

sunnyseed · 30/10/2023 07:56

There needs to be an overhaul of taxation to make it fairer which I’m sure Labour bring in once they are in power. This should provide more money for state funded education. Every child is entitled to a good education. Regardless of their parents’ bank balance.

I don't know qhy you would be sure of this. You realise that they have been in power previously?

SoySaucePls · 30/10/2023 19:22

mugboat · 30/10/2023 12:58

Right, exactly... and you absolutely can say "I disagree with this system but this is what I have to do right now"... and it's what we do.

Someone earlier asked if I won the lottery, would I send my kids to private school... I said I wouldn't based on my present circumstances... I do strongly believe in high quality education for all... so if I had millions (in this fake hypothetical world- I don't play the lottery) I would actually use it to campaign for better provision for all children.

I watched a documentary about a state school for autisitic girls, what a wonderful school it was. Those girls had had a tough time at their old state comprehensive schools and were thriving in this specialised environment. This is an option that should be available for all.

Edited

If I had NT kids they’d more than likely be at a state school.

They both gave it a really good run anyway.

Its easy to be noble about saying you’d stay state after a gigantic lottery win, when you’ve got kids that it sounds like would do well anywhere.

If on the other hand you’ve sat through literally years and years, over a decade of tears and sadness and endless painful rejections night after night, plus physical violence you’d almost certainly do what I’ve done. Any parent would. No parent wants to see their child suffer daily. Every day. For years and years and years.

I can’t tell you what it’s done to me as a person, those awful years at primary. What happened to my kids. My mental health and theirs, more than mine, has been affected forever. Bullying breaks a person and it’s a long road to recovery. and some don’t recover. Not really.

K4tM · 30/10/2023 17:12

Days are longer though.

TizerorFizz · 30/10/2023 16:39

2 week half terms have been pretty standard at some private schools. The autumn one is often school trip offered for first week then puoils go home. Terms are much shorter at boarding schools too.

K4tM · 30/10/2023 16:35

We’ve already reduced the school day in my school. We finish at 3pm with 30 mins for break and lunch. We have a 2 week half term this year - another week of heating and lighting saved.

Angrymum22 · 30/10/2023 16:12

I think worrying about private schools going under is the least of our worries if we go into a global recession.
All schools will be hit by increasing costs, particularly staff salary increases to keep up with inflation. We will probably see measures such as reduced school days/hours and increases in class size to accommodate rising staff costs. Heating is a major problem so reducing the hours in winter to save fuel will be considered. It may have to be if selective power cuts are introduced.
I was at school during the last big recession in the 1970s when fuel was rationed, power cuts and three day weeks were introduced.