Private schools to go bust in the coming recession

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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.

Agreed, I’m worried about my child’s school going under as it is, and this is before Starmer puts 20% VAT on fees.

Already happening. The two major independent schools in our town recently merged to secure the future of the smaller, as despite oversubscription and excellent outcomes it was unable to survive.

Converting buildings hoarded by the most wealthy into flats sounds excellent. We need more housing and it shouldn't be built on greenfield sites.

agreed. Finding it difficult to feel sad about private schools going under.

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.

Well considering the birth rate in England has been in steady decline for some time. I don't see fewer schools at a big problem. Especially as with the increase in living expenses and wages not keeping up there will be less people able to aford private education as it is.

I guess it depends where in the country you are based. They are all oversubscribed round here with 7 to 10 kids going for each place at the selective ones.

I can't feel sad about this.
I do feel sad about underprivileged families struggling to feed their kids though which will only get worse in a recession.

I work in a big independent school. What you say is true, OP. Our school is taking active measures now to shore up their position. We'll simply turn to opening more international schools (the profits of which help to pay the bills here), taking in more international boarders and more of the wealthy kids who wouldn't ordinarily have passed the entry exams, and, sadly, offering fewer bursaries for local children. The big schools will survive, but they'll simply become even more exclusive.

Good. Maybe when everyone has to use the same education system, politicians will care.

The top schools have many children of the super rich. I believe. They will just pay up

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.

The big ‘brand name’ schools will always survive. A number of smaller private schools have closed in the last 15 years in my city already. I think this is quite common as the traditional middle classes like doctors and solicitors who used to use these schools are completely priced out now. Eg my friend and 2 siblings attended private school in the 80s/90s with one parent a GP and one a speech therapist. That would be totally unaffordable for a similar family these days.

@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!

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 kind of feel that state education will be a higher priority in the minds of many Tory voters when their children and grandchildren are forced to attend.

Not to mention the hundreds of jobs that will be lost when a school closes. Not just teaching staff, but catering, cleaning, facilities and ground staff.

Agreed. I went to high school in an fairly affluent area. It was a really good school and there was so little in the way of bullying. I went there from a middle school where I got screamed at, hit and spat on on a weekly basis.

If those from more affluent areas stop sending their kids to private schools,
kids like me won’t get a place at their local high school and will have to go to the rough ones with poor academic results.

I would send my son privately in a heartbeat but sadly can’t afford it.

Every child is entitled to a good education. Regardless of their parents’ bank balance

Yes because council estate schools are already funded the same as non estate schools? Extra curricular actives and trips are definitely not funded by Parent associations.

It’s never fair, it’s never going to be fair.

@43ontherocksporfavor Most conservative voters use, or have used, state education. The Conservative MP isn’t now typically rich either. Some are. Just because you don’t use something, doesn’t mean you don’t value it for wider society. I don’t use services for the elderly, but I still value them.

I think if you can afford a private education, good for you, go for it. It does take pressure off existing system.

I don’t think the kids get better teachers though, but perhaps better facilities and smaller class sizes. This likely leads to improved outcomes in terms of behaviour.

And yes, a lot of it is funded by international students, as is much of our university system.

Tories plainly don’t value any state resources.

Sunnyseed - “there needs to be an overhaul of taxation…. “ Meaning what?

As a family we already pay enormous amounts of tax. It is comments like this that really make me wonder how much additional capacity people think higher rate tax payers have to contribute to the public purse. Or do you think that because we might stop paying private school fees, Starmer can just help himself to that money??

You think Eton or Harrow or Fettes, etc, will close? That's not going to happen. Politicians and their DCs will always have private education options. It's everyone else who will be affected.
State schools are already full - they'll be inundated if private schools close - so all the working class and middle class DCs will get a worse education.
And what about all the teachers, janitors, dinner ladies from the private schools? What non-existent jobs do you think they will miraculously walk into?
If you are celebrating and think it would stop inequality rather than entrenching it even deeper, then you haven't thought any of this through.

I don't have much sympathy.

I do think people have the right to opt for private education if they can afford it. We can't dictate how people spend their money.

However, if the system is unsustainable then that's just the way it is. Private schools should certainly not be treated as charities. This is probably the least concerning issue generated by the cost of living crisis.

Hopefully if the better off have to start using the state system there will be more impetus to sort it out and fund it properly.