Please or to access all these features

Secondary education

Connect with other parents whose children are starting secondary school on this forum.

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:
Thread gallery
7
Barbadossunset · 31/10/2023 10:57

SabrinaThwaite fair enough.

SabrinaThwaite · 31/10/2023 10:56

@Barbadossunset

I should also add that I’m only mildly opposed to private schools - you can spend your money how you like, and I do think that private specialist SEN provision should be supported - but I am opposed to what in most cases are essentially businesses receiving preferential tax treatment.

It’s the grammar system that results in a two tier state system that gets my goat (hence we have always chosen not to live in grammar areas).

Barbadossunset · 31/10/2023 10:52

because its entrenching social inequities... and genuinely, no I would not pay for private school for my kids if I won the lottery- unless of course their school was crap.

Mugboat so you would pay for private school if ‘their school was crap’? That’s why a lot of people pay.

If more people were strident about this then perhaps we would see change.
Alastair Campbell and his partner Fiona Millar have strident about it for years and both are positions of influence.

MidnightOnceMore · 31/10/2023 10:52

EasternStandard · 31/10/2023 10:29

Education generally doesn’t attract VAT if you look outside U.K.

A subsidy would be to rebate as some places do.

A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. is a basic explanation.

Are private schools charities? No.
Do they provide an essential service. No.

Should they be banned? No. People should be free to purchase their services on commercial terms.

TizerorFizz · 31/10/2023 10:51

Personally I would definitely stop Dc being carers. Any money from vat should stop this. If greatly limits the life of the child.

I have used both state and private schools. Regarding teaching, especially at our local small private primary, it was not universally great. We moved dd as I felt it was below par and we went state. DD had really come on during EY provision there as it had really suited her. I really thought they struggled with competent teaching above that and quite a few teachers weren’t uk qualified and would not have got jobs in state schools as teachers. They were teaching just 12 Dc and I knew they could not teach 30 in a state school. I found much stronger teaching in the state sector. I was a school governor in a deprived area so was in a position to compare. So I’m not sure all teachers will readily move to state schools if private ones close.

The great issue will be finding money for everything everyone wants. It’s not there.

Other services, such as private health, don’t attract vat. No government wants greater pressure on the health service. So vat on school fees is an attack on private education and this section of wealthier (or prudent) parents. However it’s one without thought given to the consequences. This is typical of left wing vengeful policies.

Barbadossunset · 31/10/2023 10:48

SabrinaThwaite thank you for answering my question.

SabrinaThwaite · 31/10/2023 10:44

Barbadossunset · 31/10/2023 10:41

That’s one take but not the feedback I’ve had from private school parents 🤣

SabrinaThwaite as a poster who frequently writes about her strong opposition to private education, where do you come across all these private school parents? I can’t imagine you have many as friends.

We have plenty of friends that sent their children to private schools. And plenty that didn’t.

Strange that eh?

Barbadossunset · 31/10/2023 10:41

That’s one take but not the feedback I’ve had from private school parents 🤣

SabrinaThwaite as a poster who frequently writes about her strong opposition to private education, where do you come across all these private school parents? I can’t imagine you have many as friends.

Baconisdelicious · 31/10/2023 10:33

@MidnightOnceMore Supporting disadvantaged pupils is a national priority. It also benefits every other pupil in the system as it prevents behaviour issues which drain resources away later.

Jesus wept. being disadvantaged is not synonymous with bad behaviour. Plenty of kids in private schools are badly behaved (and to an extent tolerated because of the fees they bring with them). Plenty of kids who are carers, live in one-income households, rely on benefits, have an absent parent, are homeless, are suffering themselves with illness or disability etc etc etc are well behaved in school, all day, every day.

and tipping children who struggle with noise, large class sizes, who have learning difficulties such as dyslexia etc out of the private sector into the state sector is hardly going to improve their behaviour, is it? And that will impact on everyone.

Barbadossunset · 31/10/2023 10:31

Most people don’t send their kids to private school. They should all be razed and starter homes built on the huge grounds.

Arseinthecoop so would these school buildings be confiscated? That might not be easy under a democratic government.

EasternStandard · 31/10/2023 10:29

MidnightOnceMore · 31/10/2023 10:23

It is a subsidy because other services pay VAT, but private schools were let off.

It costs the treasury to not charge VAT.

Education generally doesn’t attract VAT if you look outside U.K.

A subsidy would be to rebate as some places do.

MidnightOnceMore · 31/10/2023 10:23

EasternStandard · 31/10/2023 10:19

There is no subsidy. VAT is extra

It is a subsidy because other services pay VAT, but private schools were let off.

It costs the treasury to not charge VAT.

MidnightOnceMore · 31/10/2023 10:21

Teentaxidriver · 31/10/2023 10:16

For those comparing Labour and conservative administrations spending on education, does it occur to you that they were operating in entirely different economic circumstances? Labour was rolling in money from 1997. They were in power when the GFC hit and a labour minister left the “there’s no money [hahaha]” note.

The Tories had enough money to keep subsidising private schools by covering their VAT and gave plenty out to people like Michelle Mone.

And the cuts the Tories have made have ground the economy further down.

And that's before we get to the economic self-harm that was Brexit.

EasternStandard · 31/10/2023 10:19

MidnightOnceMore · 31/10/2023 10:18

Education is a core political policy area. Blair ran on 'education, education, education'. The Tories are always wanging on about schools - they forced academies and free schools on an unwanting nation. Every party should do politics with education.

The bottom line is private schools look likely to lose an unjustified subsidy. That's it. They provide a non-essential private service, and their tax bill has been subsidised by the Treasury up to now, for political reasons.

There is no subsidy. VAT is extra

MidnightOnceMore · 31/10/2023 10:18

Falzarega · 31/10/2023 08:51

“They are so blinded by their hatred of private schools that they won’t care. Even if it was to the detriment of local state schools, they’d be happy to see a private school close.”

And that’s why they’re still unfit to lead the country. They don’t care what’s best for the country, they just wants whatever sounds good in the Guardian and whatever gets people on benefits shrieking ‘yeah fuck the rich’.

I pulled my autistic DS out of the state system because the noise and crowds at primary school were breaking him (and the head didn’t care). He’s thrived at private school. Now for senior school I have to choose between a state grammar school place where he’ll struggle with noise and crowds again, or a small nurturing private school where I want to send him but that I can’t afford if Labour raise the fees 20% overnight, and which might be at risk of shutting if Labour get in anyway. If we accept the grammar place, that’s one more child who lives further from the school in a cheaper area who doesn’t get to go to grammar school.

It’s repulsive seeing Labour turn children’s education into a political football. I despise Kier Starmer even more than I despise the current government and that is quite an achievement.

Education is a core political policy area. Blair ran on 'education, education, education'. The Tories are always wanging on about schools - they forced academies and free schools on an unwanting nation. Every party should do politics with education.

The bottom line is private schools look likely to lose an unjustified subsidy. That's it. They provide a non-essential private service, and their tax bill has been subsidised by the Treasury up to now, for political reasons.

Teentaxidriver · 31/10/2023 10:17

Do you think Covid topped up the coffers?

Teentaxidriver · 31/10/2023 10:16

For those comparing Labour and conservative administrations spending on education, does it occur to you that they were operating in entirely different economic circumstances? Labour was rolling in money from 1997. They were in power when the GFC hit and a labour minister left the “there’s no money [hahaha]” note.

TizerorFizz · 31/10/2023 09:52

@Ayalga There are lots of private schools, especially girls’ schools, that don’t have huge pots of endowment money. Most of these schools are relatively new. They don’t have hundreds of years of endowment gifts and subsequent uplift in value. At many less ancient schools, bursary money comes from fee income. It’s therefore difficult, in the current circumstances, to get parents to stump up even more. Many schools raise bursary funds from richer parents but unless you have a lot of these who are prepared to give, it’s hard. So I’ve seen great generosity but the more bursary students you have, you know your bursary income will be more limited as these parents don’t contribute. For obvious reasons. It’s always thought private schools are all like Eton. They are not.

We just have a section of the voting public that dislikes wealthier people but wants their money. I tend to think of people pay tax fairly, let them make choices. We have PP funding for disadvantaged Dc in state schools. There are also many private schools that are not very good. However that’s the same with state schools where poor leadership and teaching are holding the school back. Some schools in deprived areas are great. What we don’t have is enough good teachers to go round. In some schools I’m not surprised good teachers don’t want to go there. A well run school is so important and making the less popular private schools close won’t help this at all.

Labour is doing this for political and class warfare reasons. It will have no effect on improving state schools at all. None.

ArseInTheCoOpWindow · 31/10/2023 09:09

It’s repulsive seeing Labour turn children’s education into a political football

The Tories have done this for the last 13 years in the state sector. They don’t give a shit about anyone’s child. I had one at school under Labour and one at school under this government. I taught for 25 years under Tory, Labour, Tory.

I know which child had the better education and which government invested in education.

The Tories don’t care.

EasternStandard · 31/10/2023 09:02

Rincol · 31/10/2023 08:44

God, they're getting desperate now. "But what about the cleaners? They're poor people. Don't you care about poor people? I care about poor people, as ably demonstrated by my post about them."

If you whack 20% on any sector it’ll contract

People will lose jobs. It’s just schools where people get enjoyment out of that

Baconisdelicious · 31/10/2023 09:00

God, they're getting desperate now. "But what about the cleaners? They're poor people. Don't you care about poor people? Icare about poor people, as ably demonstrated by my post about them

Ermmm? It's a fact that hard-working, decent people will lose their jobs if/when schoolw close. It's also a fact that, even if just temporarily, it will mean less money floating around the local community, potentially impacting all sorts of other business.

As for 'they' are getting desperate, life-ling Labour voter who happens to work in a private school? There is always a bigger picture, even if you don't want to see it.

Falzarega · 31/10/2023 08:56

Ps the big famous schools like Eton and Harrow are untouchable. They could fill all of their places with Chinese and Russian children overnight no matter the price. What Starmer’s proposals will do is shut the small private schools who act as the safety net for children who can’t cope in larger state schools.

Falzarega · 31/10/2023 08:51

“They are so blinded by their hatred of private schools that they won’t care. Even if it was to the detriment of local state schools, they’d be happy to see a private school close.”

And that’s why they’re still unfit to lead the country. They don’t care what’s best for the country, they just wants whatever sounds good in the Guardian and whatever gets people on benefits shrieking ‘yeah fuck the rich’.

I pulled my autistic DS out of the state system because the noise and crowds at primary school were breaking him (and the head didn’t care). He’s thrived at private school. Now for senior school I have to choose between a state grammar school place where he’ll struggle with noise and crowds again, or a small nurturing private school where I want to send him but that I can’t afford if Labour raise the fees 20% overnight, and which might be at risk of shutting if Labour get in anyway. If we accept the grammar place, that’s one more child who lives further from the school in a cheaper area who doesn’t get to go to grammar school.

It’s repulsive seeing Labour turn children’s education into a political football. I despise Kier Starmer even more than I despise the current government and that is quite an achievement.

Rincol · 31/10/2023 08:44

God, they're getting desperate now. "But what about the cleaners? They're poor people. Don't you care about poor people? I care about poor people, as ably demonstrated by my post about them."

Baconisdelicious · 31/10/2023 08:38

Just a reminder that when you’re wishing these schools closed, it’s not just teachers who will lose their jobs. Private schools employ admin staff, receptionists, cleaners, kitchen staff, grounds people, maintenance staff. And not forgetting that money earned is money frequently spent in the local community.