Small private schools in Wales, including St Gerard’s School Trust in Bangor, are facing the threat of closure due to new VAT rules, according to a recent warning by headteacher Campbell Harrison. These schools, which rely on modest fees and operate without making significant profits, could be severely impacted by the new regulations. St Gerard’s School Trust charges between £10,000 and £15,000 a year for its 100 pupils aged four to 18. Despite the misconception that these schools cater only to the elite, Mr Harrison emphasised that most parents who send their children to such institutions are not wealthy and make sacrifices in other areas to afford the fees.
The UK Chancellor has confirmed the end of tax breaks for private schools starting in 2025, with the addition of 20% VAT to education and boarding fees charged by these schools. The new policy aims to redirect funds towards state education, bringing in an estimated £1.725 billion annually for the Treasury. As a result, smaller independent Welsh schools may be forced to raise fees, potentially driving parents towards state schools and jeopardising the existence of these institutions.
St Gerard’s School Trust, with 100 pupils and 30 staff members, has operated without making a profit for the past five years, prioritising education choice over financial gains. Facing the possibility of closure, Mr Harrison expressed concerns about the impact on students in the middle of their GCSEs and A levels. The school provides individual attention and small class sizes, yielding exceptional exam results and fostering strong pastoral care.
The headteacher highlighted the diverse student population at St Gerard’s and their successful academic achievements. He argued that many children who struggle in the state system thrive in their school environment, benefiting from tailored support and smaller classes. However, the potential closure of these schools could lead to increased mental health issues among affected students.
Mr Harrison criticised the policy changes, accusing the government of overlooking the valuable contributions of small fee-charging schools to local communities and economies. He underscored the school’s Welsh roots and local ties, dismissing the notion that all independent schools in Wales are run by foreign entities. He expressed frustration with the lack of understanding displayed in consultations regarding local business rates.
In light of the impending financial challenges, schools like St Gerard’s are exploring options to navigate the VAT implications, including potential property sales and transitioning from charitable status to a business model. The decision to end tax breaks on private schools aligns with the government’s goal of enhancing opportunities for the majority of children in state education. However, the unintended consequences on small private schools in Wales could have far-reaching effects on students, families, and local communities.
The Welsh Government’s response to these concerns and the broader implications of the policy changes remain uncertain. As the debate continues, the future of small private schools in Wales hangs in the balance, raising questions about educational diversity and the overall welfare of students across different schooling environments.